MEDICAL LOSS RATIO REBATES:
ERISA PLAN ASSETS?

The Department of Labor has issued new guidance on the medical loss ratio (MLR) rules. This guidance reminds plan sponsors of fully insured group health plans that there are potential fiduciary considerations involved in the receipt of any MLR rebate.
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YOU ARE YOUR BROTHER'S KEEPER:
CO-FIDUCIARY LIABILITY UNDER ERISA

Plan fiduciaries must not only make sure that their own conduct complies with ERISA's exacting standards; they also have a duty to monitor the conduct of the plan's other fiduciaries. The failure to do so can result in personal liability under ERISA's co-fiduciary duty rules.
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IRS REVISES PROCEDURES FOR OBTAINING DETERMINATION LETTERS

The IRS has recently made changes to its determination letter program that are designed to (i) eliminate features that are of limited utility to plan sponsors, and (ii) improve efficiency by reducing the time it takes to process applications.
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IRS CAUTIONS AGAINST "SHAM"RETIREMENTS

In a recent ruling, the IRS reiterated its long-standing position that a "pension plan" may not allow active employees to obtain a distribution from the plan - at least, not before their attainment of the plan's normal retirement age (or, if earlier, age 62).
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FEDERAL APPEALS COURT UPHOLDS $243,000 DAMAGE AND FEE AWARD FOR EMPLOYER'S FAILURE TO PROVIDE SPD AND ELECTION FORM

A recent ruling from the federal Court of Appeals highlights two critical ERISA basics: fiduciary duties and disclosure requirements. In Kujanek v. Houston Poly Bag, the Fifth Circuit upheld an award of damages and fees of more than $243,000 for an employer's failure to provide a participant with a copy of a retirement plan's summary plan description and a distribution election form.
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A COMMON PLAN MISTAKE: FAILING TO APPLY THE PROPER "COMPENSATION" DEFINITION

The failure to properly withhold salary deferral contributions from a participant's compensation is one of the most common mistakes that arise in the administration of a Section 401(k) defined contribution retirement plan. This common mistake generally occurs because the plan sponsor fails to apply the proper definition of compensation under the plan.
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IRS GUIDANCE FACILITATES LIFETIME INCOME OPTIONS

The IRS has issued a package of proposed regulations and revenue rulings dealing with "lifetime income options." These regulations and rulings apply to both defined contribution and defined benefit plans, and to a variety of life situations. What they share in common is an intent to encourage employers to help their employees more prudently manage their retirement assets during the "drawdown" phase of their retirement.
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