HR Compliance / Legislation Updates

DOL Announces 2024 Penalties for Benefit Plan Compliance Errors

Read Time: 5 Minutes

Since 2015, federal agencies have been required to annually review the laws and regulations they enforce to adjust applicable penalties for inflation. These adjustments, or so the theory goes, provide higher incentives for plan sponsors to ensure their benefit plans and programs remain compliant. Specifically, the U.S. Department of Labor (DOL) must adjust penalties under the Employee Retirement Income Security Act (ERISA) annually

Action steps
To avoid penalties, employers should review their health plans to ensure compliance with ERISA’s requirements. Specifically, employers should ensure they are complying with ERISA’s reporting and disclosure rules, including Form 5500, annual CHIP notice, and SBC requirements... Keep Reading

WEBINAR

Qualifying Events and Special Enrollment Periods

Tuesday, April 9, 2024

2PM EST

Attend this month’s webinar to learn how the Internal Revenue Service (IRS) regulates employee benefit contribution levels and the timing of enrollment elections.

Gain insights into:

The irrevocable nature of plan elections
The tax-favored account enrollment changes allowed by the IRS
Avoiding discrimination in plan design and contributions

Be able to answer these questions:

What are the allowable benefits and employee classes in a Section 125 plan?
Can fringe benefits be part of a cafeteria plan?
How, when, and why does the IRS allow an employee to make midyear election changes?

Registration Code: UBA410EW

Insurers Are Not Obligated to Inform Terminated Employees of their Life Insurance Conversion Rights

Read Time: 5 Minutes

A recent case in an Indiana federal court serves as a reminder to employers that insurers are generally not obligated to inform terminated employees of their conversion rights. In Estate of Maribeth Presnal v. Dearborn National Life Insurance Company et al (the "Presnal Case"), the district court affirmed that insurers do not owe a duty to terminated employees of informing them of their rights to convert their life insurance policies. It is typically the responsibility of the employer to provide such notice. However, the court also held that the employer’s summary plan description (SPD) was sufficient notice of the right, but that mental incapacity could constitute an "extraordinary circumstance," warranting am extension of the deadline to convert to a personal policy or make premium payments... Keep Reading

Question of the Week

Q: What are whistleblower protections?

A: Whistleblowing occurs when an employee reports wrongdoing (dangerous, illegal, or unethical activity or practices by the company or its employees) either directly to the employer or to an outside authority. Many laws, including the Occupational Safety and Health Act, consider whistleblowing a protected activity, meaning you can’t lawfully retaliate against an employee for making such a report. If you were to retaliate, for instance, by disciplining the employee or excluding them from promotional opportunities, the employee could file a complaint.