Employee Benefits Law Report

Rich Helmreich

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Rich serves as chair of Porter Wright’s Employee Benefits Practice Group, where he regularly advises employers on the full range of their employee benefit plan issues. He counsels clients on business issues, including strategic growth initiatives, merger and acquisition opportunities, and corporate finance prospects.

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Proposed regulation for long-term part-time employees: Plan sponsors act now

By Rich Helmreich and Greg Daugherty on Categories: IRS, Retirement Plans
Effective Jan. 1, 2024, employers who sponsor 401(k) plans must allow employees who work at least 500 hours a year over a period of consecutive years (“long-term part-time” or “LTPT employees”) to be eligible to make deferrals into the plan. This change requires immediate action by plan sponsors to change the way they administer their … Continue Reading

Unanimous Supreme Court provides victory to plaintiffs in ERISA fee litigation

By Greg Daugherty and Rich Helmreich on Categories: ERISA Fiduciary Compliance, ERISA Litigation
But just how big of a win is it? The U.S. Supreme Court recently issued a unanimous decision in Hughes v. Northwestern University, reversing and remanding a lower court ruling that had dismissed the case against a retirement plan sponsor. This decision reaffirms that the Employee Retirement Income Security Act’s (ERISA) fiduciary duty of prudence … Continue Reading

DOL proposes new ERISA fiduciary ESG and proxy voting rules

By Greg Daugherty and Rich Helmreich on Categories: ERISA Fiduciary Compliance
In what some commentators are describing as the latest volley in a game of regulatory ping-pong, the Department of Labor (DOL) published proposed regulations that would change the way an ERISA fiduciary should consider environmental, social and governance (ESG) issues and related proxy voting decisions with respect to plan investments (the proposed regulations). The proposed … Continue Reading

Plan sponsors now have a deadline for providing lifetime income illustrations

By Greg Daugherty and Rich Helmreich on Categories: Retirement Plans
Employers who sponsor 401(k) plans and other defined contribution plans in which participants may direct the investments of their accounts now have a deadline to provide lifetime income illustrations in those plans’ benefit statements. The Department of Labor (DOL) recently published guidance addressing these requirements. While helpful, the guidance is still subject to change in … Continue Reading

IRS updates Nonqualified Plan Audit Technique Guide—Is a new enforcement initiative on the horizon?

By Greg Daugherty, Dave Tumen and Rich Helmreich on Categories: Audits and Correction, IRS
The Internal Revenue Service (IRS) recently updated its Nonqualified Deferred Compensation Audit Techniques Guide (NQDC). It released Publication 5528 (NQDC guide) on June 1, 2021. The IRS last updated the NQDC Guide in 2015. Interestingly, the 2015 NQDC Guide was published shortly after the IRS sent information document requests to publicly traded companies to determine … Continue Reading

DOL confirms cyber security is an ERISA fiduciary issue and issues guidance for retirement plan sponsors, service providers and participants

By Rich Helmreich and Greg Daugherty on Categories: ERISA Fiduciary Compliance, Retirement Plans
The U.S. Department of Labor (DOL) recently announced new guidance for plan sponsors, fiduciaries, record keepers and participants on best practices for maintaining cyber security. This is the first time the DOL has issued such guidance, and it comes in response to a recent General Accounting Office (GAO) report responding to increased cybersecurity risks to retirement plan … Continue Reading

New IRS guidance reminds employers about new long-term part-time employee eligibility rules for 401(k) plans

By Greg Daugherty and Rich Helmreich on Categories: CARES Act
Much of the employee benefits news this year has related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, particularly with respect to the greater flexibility it provided 401(k) plan participants with respect to requesting in-service distributions and loans. That is not a surprise during this year of economic upheaval. Updating plan administrative procedures … Continue Reading

Aug. 31 deadline to rollover 2020 RMDs is quickly approaching

By Rich Helmreich on Categories: CARES Act, COVID-19, Retirement Plans
Once a taxpayer reaches age 72 (or age 70 ½ if the taxpayer reached age 70 ½ prior to 2020), the Internal Revenue Code requires owners of most retirement accounts to withdraw minimum distributions (RMDs) from those accounts. To provide relief from the increased tax burden often associated with RMDs, the Coronavirus Aid, Relief and … Continue Reading

ESOPs from the seller’s perspective

By Rich Helmreich on Categories: ESOPs
An Employee Stock Ownership Plan (ESOP) can be a great option for small business owners looking for a tax-advantaged way to sell their business. My colleague, Greg Daugherty, recently appeared on an episode of the podcast, “The ESOP Guy: The Journey to an ESOP.” Greg spoke with host Phil Hayes about the seller’s perspective and key … Continue Reading

Stop and review COVID-19 distribution and loan forms carefully

By Greg Daugherty, Deb Boiarsky, Victoria Hanohano-Hong and Rich Helmreich on Categories: CARES Act, COVID-19
The Coronavirus Aid, Relief and Economic Security (CARES) Act, authorizes employers to make changes to their qualified retirement plans to increase loan limits, delay loan repayments, and make distributions to plan participants experiencing certain COVID-19 related circumstances. Due to a lack of guidance from the IRS, there’s confusion among third-party administrators (TPAs) about how to … Continue Reading

Navigating employment issues in the wake of COVID-19 webinar

By Rich Helmreich on Categories: COVID-19, Employment Issues, FFCRA
We have all felt the tremendous impact to our workplaces and daily lives following the COVID-19 outbreak We’ve also watched the daily press conferences announcing new legislation and executive orders–but what happens next? My colleagues Leigh Ann Benedic and Mike Underwood hosted a discussion on effects of the Family First Coronavirus Response Act (FFCRA) on … Continue Reading

IRC Section 409A v. COVID-19: The nonqualified and executive compensation clash, and how employers can navigate it

By Greg Daugherty, Dave Tumen and Rich Helmreich on Categories: COVID-19, Executive Compensation
Unintended consequences are a fact of life. As one of many examples, after the Titanic sank, the United States enacted a law that required any American ship carrying over 100 tons of weight to have enough lifeboats for every passenger. It was a noble thought – no more rationing of lifeboats in the event of … Continue Reading

Navigating employment issues, help for small businesses and a delay in the tax deadline

By Rich Helmreich on Categories: COVID-19, Employment Issues
There have been a number of helpful blogs recently from our colleagues at Porter Wright aimed at helping businesses navigate the COVID-19 outbreak. Navigating Employment Issues in the Wake of COVID-19 webinar We have all felt the tremendous impacts to our workplaces and daily lives following the COVID-19 outbreak We’ve also watched the daily press … Continue Reading
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