Understanding Employee Benefits

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

EEOC Loses Another Wellness Case, Part 1

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The EEOC has been bringing lawsuits against employers challenging wellness programs. A recent case involved a company that had previously provided a credit to employees enrolled in the health plan who participated in a health risk assessment (HRA) and biometric screenings. The company had eliminated the credit and instead conditioned... Read More

Topics: Health Care Reform, Health Plan

IRS Relaxes Rules for Mid-Year Changes

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Since its availability, many 401(k) plan sponsors, particularly smaller employers have adopted a “Safe Harbor” plan design under Code Section 401(k)(12) or (13) and 401(m)(11) or (12). Safe Harbor plan designs include both a fully vested 3% qualified non-elective employer contribution or a fully vested employer matching contribution equal to... Read More

Topics: Retirement 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