In late May, the Department of Labor (DOL) issued Compliance Assistance Release No. 2025-01 , which rescinds Compliance Assistance Release No. 2022-1 , published by the Biden Administration. The earlier release had advised 401(k) plan fiduciaries to avoid including...
Internal Revenue Code Section 162(m) generally limits to $1 million the tax deduction that a public corporation may take for compensation paid to certain top executives referred to as covered employees. Before the Tax Cuts and Jobs Act of 2017 (TCJA), corporations...
A health-contingent program is a program that conditions eligibility for a reward on a participant's ability to meet a standard related to a health factor. For example, a tobacco cessation program can be designed as a health-contingent wellness program. This...
In today's competitive business landscape, companies use comprehensive executive employment agreements to attract and retain top talent. These agreements align the interests of both the executive and the organization by providing a detailed compensation structure...
If an ERISA plan participant has a claim against the plan fiduciaries, the participant first must exhaust the plan’s internal remedies. Once the participant makes their claim, the plan administrator must prepare and deliver a written notice of the benefits...
A recent wave of cases attempts to apply the same theory of liability for retirement plan excessive fee cases to health plans—specifically to arrangements with pharmacy benefit managers. While the cases thus far have been dismissed for lack of standing, health...
In late February, six class actions were filed against The Pension Specialists Ltd (Pension Specialists) in an Illinois district court over a data breach of personal and sensitive information retained by Pension Specialists on behalf of plan participants and the...
Employers often relocate employees to meet their business needs, respond to trends, and remain competitive. Many employers have corporate mobility programs and policies that allow them to identify top talent, place them strategically throughout the organization...
For plan years beginning in 2026, higher-compensated participants (not highly compensated employees under Section 414(q)) in 401(k) plans and salary reduction 403(b) plans will not be allowed to make catch-up contributions on a pre-tax basis. But they will be permitted...
ERISA sets forth many disclosure requirements for plan sponsors and administrators to furnish certain benefit plan-related documents to participants to apprise them of their rights, benefits, and obligations under their plans. A civil penalty remedy structure is...
Restricted stock units (RSUs) are a popular form of executive compensation which grant the recipient the right to receive company shares or a cash equivalent at a specified future date. These units often come with conditions based on time or performance before...
Plan sponsors have a fiduciary obligation to prudently select and manage the investment options they offer participants in a retirement plan, and the obligation is under special scrutiny by participants in a plan with participant-directed investments. Plan sponsors...
ERISA plan fiduciaries are often asked to consider investment of retirement plan assets in a private equity fund. In the United States, private equity funds are structured with features for various investments like venture capital and buyouts. Managed by sponsors...
When an employer contemplates an acquisition, merger, or other corporate transaction, the employer often wants to be sure that key employees remain during (and often for a time after) the transition. Retention agreements are useful for this purpose and can provide...
Fiduciaries must engage in a process to gather and evaluate the information needed to make pertinent plan decisions. Where fiduciaries lack the expertise to make those decisions, they must engage experts to help them. It is also important to know what decisions...