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WHA Financial Solutions' Compliance Corner newsletter
contains valuable information on timely compliance and regulatory
issues. Each newsletter is archived by date at www.whafs.com.
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Supreme
Court Rules that Individual Participants May Sue for Breach of
Fiduciary Duty
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In LaRue v. DeWolff, Boberg,
& Associates, Inc., a defined contribution plan participant alleged
that a plan fiduciary had failed to follow his investment instruction
that resulted in a loss to his account of $150,000. The U.S. Supreme
Court ruled that a participant has the right to file a claim under
ERISA for a breach in fiduciary responsibility when the breach
results in a loss to the individual's defined contribution plan
account. The claim is permitted even if the individual's account was
the only account affected by the fiduciary breach.
Click
here for more information
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EBSA
Proposes Safe Harbor Period for Depositing Participant Contributions
to Plan
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The
Employee Benefits Security Administration (EBSA) has announced
proposed regulations regarding the timely deposit of participant
contributions to pension and welfare plans. Contributions will be
considered to be deposited in a timely manner if deposited within the
safe harbor period of seven business days from which the
contributions were withheld from employee wages. The safe harbor is
applicable to plans with less than 100 participants. If finalized,
the regulations would revise the current practice, which is no later
than the 15th business day of the following month for pension plans
and 90 days for welfare plans. The Department of Labor will accept
comments through April 29, 2008.
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ERISA
Preempts State Law for Health Plan Payroll Deductions
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EBSA
Advisory Opinion 2008-02A, states that ERISA section 514(a) preempts any
state law that requires an employer to obtain written consent before
withholding amounts from an employee's wages for contributions to a
group health or welfare benefit plan, whether the election was made
affirmatively or by default.
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CMS
Releases Final Medicare Secondary Payer Regulation
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On
February 24, 2008, the Centers for Medicare and Medicaid Services
(CMS) released the final regulations regarding Medicare Secondary
Payer provisions, which apply to a group health plan, insurer, or Third
Party Administrator that is responsible for paying a claim primary to
Medicare. The plan is required to reimburse CMS for any amount that
Medicare pays on a claim that should have been paid by the plan.
Additionally, if a plan learns that Medicare paid primary on a claim
that should have been paid by the plan, then the primary plan is
responsible for notifying CMS. Additional information from CMS is
forthcoming regarding how the repayment and notice should be made.
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CMS Publishes List of
Review Items for HIPAA Security Investigation
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CMS has released a
document revealing what information CMS would request when conducting
a HIPAA Security investigation. Plan sponsors and business associates
may find the document helpful in making sure that they have the
proper safeguards and policies in place.
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DOL Introduces Online
Retirement Planning Resource
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The Department of Labor
(DOL) released a new online resource entitled "Taking the Mystery
out of Retirement Planning." The online interactive worksheets
are designed to make it easier for Americans to plan for a secure
retirement. This resource is targeted mainly at individuals who are
10 to 15 years away from retirement, but it may benefit individuals
of any age.
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WHA
Financial Solutions, Inc.
800-362-7121
or 608-274-1820
The
information included in WHA Financial Solutions' Compliance Corner
is intended for general information purposes only.
This information does not and is not intended to constitute
legal advice. Any decisions whether to implement these ideas
should be made by the reader in consultation with professional
financial, tax, and legal counsel.
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