Regulation

The Labor Department has sued to restore more than $34 million in assets to two retirement funds of Michigan-based vehicle parts manufacturer Metavation LLC that allegedly were used in violation of ERISA.

The IRS has proposed eliminating a signature requirement on an automatic extension for filing deferred vested benefit information, which a recent Segal Compliance Alert characterized as a small but irritating nuisance for many plan sponsors.

A U.S. bankruptcy court judge has denied a request by American Airlines parent company to abandon collective bargaining agreements with its pilots in an effort to save more than $1 billion a year in labor and benefit costs.

While employers are loath to spend money in a tight economy, it is no longer “reasonable” for plan sponsors to avoid having specialists assisting them in dealing with their benefit plans.

Workers’ compensation benefits declined to $57.5 billion in 2010, according to a new report by the National Academy of Social Insurance.Workers’ compensation benefits declined to $57.5 billion in 2010, according to a new report by the National Academy of Social Insurance.

Although it’s unclear when obesity is deemed “severe” enough to constitute an ADA-protected disability, it is now clear that “morbid” obesity” warrants such protection.

While retirement plan sponsors do not have a fiduciary obligation to tell participants that they have made an unwise investment choice, they should limit investment options to strategies that meet the acceptable diversification criteria outlined in ERISA.

The Labor Department this week issued guidance on rules requiring companies to disclose 401(k) fees to employees that will be welcome news to most employers. But for some small companies with 401(k) plans, the guidance may raise more questions, experts said.

While President Barack Obama's open support of same-sex marriage hasn't caused any immediate change in federal law, the 1st U.S. Circuit Court of Appeals in Boston ruled recently that part of the Defense of Marriage Act - which denies federal benefits to same-sex married couples - is unconstitutional and cannot be enforced. Noting that a "Supreme Court review of DOMA is highly likely," however, the 1st Circuit put the ruling on hold.

It's important to maintain strong relationships with employee benefit advisers who provide professional services at reasonable fees. However, employers must periodically question why they maintain certain relationships, particularly if fees appear to be higher than usual and/or service has declined. Sometimes a relationship is maintained with a vendor due to a long-term friendship. Other times it's maintained due to the influence of a parent corporation or for other business reasons. In all circumstances, employers should periodically evaluate vendors, fees and services, and ensure that no undue influences exist. For this reason, many employers should consider establishing a formal ERISA fiduciary gift policy.