Insights

Because the failure to file Forms 5500 would be a compliance failure, it would be best to consult with legal counsel to determine a path forward. One option that counsel could suggest would be to utilize the DOL's Delinquent Filer Voluntary Correction Program (DFVCP) to file delinquent filings.   The DFVCP gives delinquent plan administrators an opportunity to avoid higher civil penalty assessments if they satisfy the program's requirements and voluntarily pay a reduced penalty amount. The

The City of Philadelphia has enacted an ordinance requiring certain employers to offer a commuter transit benefit program to eligible employees effective December 31, 2022. Below is a key summary of the programs. Effective Date: December 31, 2022 Covered Employers: Employers with 50 or more compensated employees who work on average 30 hours per week within the geographic boundaries of Philadelphia for the same employer within the previous 12 months. Requirement: Covered employers must make a

On December 1, 2022, the DOL published a final rule entitled 'Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights.' The final rule clarifies that retirement plan fiduciaries may consider environmental, social and governance (ESG) factors when making investment decisions and exercising shareholder voting rights. ERISA's exclusive benefit rule requires a plan fiduciary to exercise duties, including the selection of plan investments, solely in the interest of parti

On November 21, 2022, the Employee Benefits Security Administration (EBSA) of the DOL proposed changes to the Voluntary Fiduciary Correction Program (VFCP). The VFCP has been around since the early 2000s and allows plan sponsors to apply to the DOL to correct enumerated violations of ERISA. This allows the plan sponsor to avoid further enforcement by the DOL on the corrected issues. The proposed rule introduces a new self-correction feature and clarifies, expands and simplifies existing transac

On September 29, 2022, Gov. Newsom signed AB 1041 into law. The new law expands the definition of 'family member' under CFRA and California Paid Sick Leave to include a 'designated person' identified by the employee. Effective for leaves starting on or after January 1, 2023, eligible employees may take leave under CFRA to care for a designated person, which is defined as any individual related by blood or whose association with the employee is the equivalent of a family relationship. An employe

On December 1, 2022, the Office for Civil Rights (OCR) at the HHS issued a bulletin to remind HIPAA covered entities and business associates ('regulated entities') of their obligations when using online tracking technologies. The bulletin emphases that regulated entities must disclose PHI only as expressly permitted or required under the HIPAA Privacy Rule. These online tracking technologies (e.g., cookies), used by third-party tracking technologies like Google Analytics or Meta Pixel, co

On November 28, 2022, the Department of Health and Human Services (HHS) released a Notice of Proposed Rulemaking for changes to the Confidentiality of Substance Use Disorder (SUD) Patient Records under 42 CFR Part 2 (referred to as 'Part 2'). The proposed rules are intended to increase coordination among providers in treatment for substance use challenges and increase patient protections from unauthorized record disclosures. Note that Part 2 only applies to SUD treatment records from certain ty

On November 7, 2022, the IRS announced the expansion of one of their programs for approving retirement plans. As a result, §403(b) retirement plans, which are used by certain public schools, churches and charities, are now permitted to use the same individually designed retirement plan determination letter program that is currently used by qualified retirement plans, such as §401(k) plans. Revenue Procedure 2022-40 explains this expansion and other program changes. Under the determination le

On November 21, 2022, the IRS issued Notice 2022-62, which is the 2022 Required Amendments List (RA List) for qualified retirement plans. The yearly RA Lists provide changes in retirement plan qualification requirements that could result in disqualifying provisions and require a remedial amendment. A disqualifying provision is a required provision that isn't listed in the plan document, a provision in the document that doesn't comply with the qualification requirements or a provision that the I