• As we await the Supreme Court’s decision regarding the health care reform act (PPACA), a summary of where things stand right now, legally.
• When employee benefit plan documents may, and may not, be delivered electronically to participants under the Department of Labor rules.
• The importance of proactive benefit plan compliance “self-audits.”
• New Department of Labor rules for participant-directed retirement plans.

Please let us know if you have any questions, and/or if you prefer to have a copy of the newsletter mailed to your office. » SKA Benefits Reporter - Spring 2012

This Burning Benefits Newsletter is an update of late-breaking legal developments. This issue discusses a recent delay by the Department of Labor in the effective dates of new participant disclosure and other rules for participant-directed 401(k) plans. The new effective dates occur in late summer of this year. » BBN 2012 - Issue 1

This Burning Benefits Newsletter is a follow up to the September 23, 2011 newsletter on new Michigan bid requirements for public employers that maintain medical benefit plans. In addition to the new bid requirements discussed in this previous newsletter, the Michigan legislature has passed Senate Bill 7 (the “publicly funded health insurance contribution act” or the “Act”), imposing new limits on public employer spending on employee medical benefit plans. Much like the new bid requirements, the requirements of the Act are intended to curb rising medical plan costs in the State of Michigan. There are two options under the Act for meeting the new limits in addition to an opt-out feature. These options are discussed further in the following newsletter. » BBN 2011 - Issue 7

Our latest BBN covers new bid requirements affecting public employers maintaining health plans. The new requirements, which become effective October 1, 2011, are generally designed to increase competition and diligence in the marketplace for health insurance and health plan administrative services. Going forward, public employers will be required to solicit four independent bids before purchasing or renewing health insurance coverage or third-party administrative services. Employers will also be required to share various claims utilization and cost information with insurance carriers, administrators, and unions.  Please see the following BBN for more details. » BBN 2011 - Issue 6

This issue of Burning Benefits News describes a recently enacted health plan tax on health care claims paid in Michigan. The statute purports to apply to self-insured plans in Michigan. We believe that there is a strong argument that the legislation is pre-empted by ERISA with respect to self-insured plans of employers subject to ERISA. » BBN 2011 - Issue 5

The United States Supreme Court recently addressed the role of SPDs under ERISA and the remedies available under ERISA for misstatements therein. In CIGNA Corp. v Amara, the Court appears to expand the equitable remedies available under ERISA. The Court also confirms that the role of the SPD is to summarize the plan document, and that the plan document ultimately governs between the two. We have summarized the Amara decision and its potential implications in this issue of Burning Benefits News. »  BBN 2011 - Issue 4

Please contact us if you have any questions about how this case may impact your ERISA-governed benefit plans.

Please click the following link for our Burning Benefits News describing changes to the Medicare Part D enrollment period and timing for distribution of creditable coverage notices.  »  BBN 2011 - Issue 3

The Patient Protection and Affordable Care Act (aka Health Care Reform) amended the Internal Revenue Code so that effective January 1, 2011, non-prescription drugs are no longer considered medical expenses eligible for reimbursement by a Health Flexible Savings Account (Health FSA), Health Reimbursement Account (HRA) or a Health Savings Account (HSA). Cafeteria plans with Health FSAs could need amendment to preclude the reimbursement of non-prescribed over-the-counter drugs. (Prescribed OTC drugs and insulin can still be reimbursed by the Health FSA, HRA or HSA). Most of our clients amended their cafeteria plans back in December to implement this change. You should review your cafeteria plan now to make sure that it does not violate the IRS rules that became effective January 1, 2011. The IRS permits very few retroactive amendments, so you need to act now if you missed this amendment. HRAs, which are required to be handled outside of a cafeteria plan, should be similarly amended, as should HSAs. See the following newsletter for more details on this requirement.

»  BBN 2011 - Issue 2

On March 29, 2011, Bob Stevenson and Andrew Stumpff presented a well-received webinar on “New Disclosure Requirements for Participant-Directed Plans.” The topics included the following:

• new DOL regulations requiring disclosure of fees and other information to participants,
• changes to ERISA section 404(a) and 404(c) requirements relative to fiduciary duties and protections,
• fee information service providers must give to plans, and
• proposed DOL regulations on target-date funds (and practical proactive steps in advance of final regulations.)

The presentation also examined 401(k) history and the current landscape more broadly, and touched on the following:

• Should participant-level fiduciary advice be dropped if indemnification can’t be obtained?
• Why plan-level fiduciary advisers’ contracts should be updated now.
• Why investment transitions should be done by re-elections and not mapping.
• How to coordinate plan provisions with TPA operations to avoid expensive errors.
• Satisfying DOL document delivery rules—when electronic is not good enough.
• Should revenue sharing and bundling continue in your plan, or is it time for transparent fee-for-service?

The slides are available here. The recording is available via replay for 90 days.

Replay Dial-In-Access: 888-496-6260 or 480-629-9053.

Participant Code: 11544869

Confirmation Number: 92561

Please contact Bob Stevenson or Andrew Stumpff with any questions.

Please click the following link for our Burning Benefits News describing an important new Department of Labor regulation applicable to “participant-directed” retirement plans. The regulation will require plan sponsor action later this year. As indicated in the issue, we will also be hosting a dial-in teleconference about the regulation, and plan sponsors’ new obligations, in March. » BBN 2011 - Issue 1