Understanding Employee Benefits

Employers Who Self Administer Life Insurance Plans Had Better Do So Correctly

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Many employers self-administer welfare benefit plans such as life insurance or disability insurance plans. This self administration requires the employer to determine eligibility for coverage, remit proper premiums and notify the insurance carrier about changes in coverage. The insurance carrier often does not even know the names of the covered... Read More

Topics: ERISA and Other Benefits Litigation, Uncategorized, Welfare Plans

Time to Review Plan Subrogation Procedures

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Most self-funded ERISA medical plans provide that participants who have been injured by other people (think car accidents) must reimburse the plan if the participant recovers from the other person for those injuries. In order to obtain that reimbursement, a plan document must contain appropriate reimbursement/subrogation language and the plan... Read More

Topics: ERISA and Other Benefits Litigation, Health Plan, Welfare Plans

Federal Court Determines that Employer Use of Employee Health Insurance Premium Payments Breach of ERISA Fiduciary Duties

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On November 9, 2015, Minnesota Federal District Judge Susan Richard Nelson ruled that the president and CEO of Faribault Woolen Mills Company breached his fiduciary duties under ERISA by diverting Employee health insurance premiums toward corporate and personal use. The lawsuit was brought by the U.S. Department of Labor. Facts:... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Health Plan, Payroll, Welfare Plans

IRS Annual Limits on Qualified Plans

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The Internal Revenue Service has released the 2016 cost of living adjustments affecting dollar limits on benefits and contributions under qualified retirement plans and health savings accounts, which are largely unchanged from the 2015 numbers. https://www.irs.gov/pub/irs-news/IR-15-118.pdf.  The following chart summarizes the 2016 retirement plan limits and other benefit plan limits. ... Read More

Topics: Health Plan, Retirement Plans, Welfare Plans