January 14, 2021
Key Implications of the Consolidated Appropriations Act 2021 on Employee Benefit Plans
On January 11, 2021, IslerDare PC published their “Employee Benefits Update”, addressing important aspects of the Consolidated Appropriations Act.
September 14, 2020
Clarification of Benefit Plan Proxy Voting Obligations
The U.S. Department of Labor (DOL) has proposed a rule on employee benefit plan proxy voting and the exercise of other specific shareholder rights. The new DOL proposed rule is intended to clarify the duties of Employee Retirement Income Security Act of 1974 (ERISA)-covered plan fiduciaries regarding proxy voting. Per the DOL’s proposed rule: “This document also states that Interpretive Bulletin 2016-01 no longer represents the view of the Department regarding the proper interpretation of ERISA with respect to the exercise of shareholder rights by fiduciaries of ERISA-covered plans, and notes that it will be removed from the Code of Federal Regulations when a final rule is adopted.” The proposal would amend ERISA Regulation Section 2550.404a-1 (“Investment Duties”) and is intended to resolve what the DOL describes as, “a persistent misunderstanding among some stakeholders that ERISA fiduciaries are required to vote all proxies, and in light of recent actions by the Securities and Exchange Commission (SEC) related to the proxy voting process.” Benefit Plan Proxy Voting Confusion The existing confusion has been a perception that fiduciaries must vote all proxies. As a result of this misperception, plans have unnecessarily spent funds researching items of no material economic significance. The new proposal
December 06, 2019
December Checklist of Compliance Deadlines for Retirement Plans and other Benefits
Thank you, Isler Dare PC, for sharing this checklist for December, reminding employers of some of the key yearend compliance deadlines for health, welfare, and retirement plans.
June 17, 2019
Nonqualified Deferred Compensation Plans From the Employer’s Perspective
Download as a PDF Question: Why do employers, as plan sponsors, offer deferred compensation plans? of employers offer deferred compensation plans in order to create a competitive benefits package of employers want to help plan participants save for retirement beyond the limits of qualified plans of employers believe a deferred comp plan helps them retain key employees of employers want to help key employees better manage current taxation Sixty-seven percent of plan sponsors report that they are concerned about losing key employees to competitors. Q. What changes to plans are plan sponsors most likely to make? Q. How frequently do most employers review a plan to identify needed changes? Q. What percentage of employers contribute to their company’s plan and why? Q. What role do employers expect financial consultants to play? Q. What factors build satisfaction with the plan recordkeeper? Statistics that appear in this document are drawn from The 2018 Principal Trends in Nonqualified Deferred Compensation report, an online survey of 271 NQDC plan sponsors conducted between June 25 and July 23, 2018. This report is based on information provided by: Principal Life Insurance Company and is shared with their permission.
May 07, 2019
Looking Out for Key Employees
Benefits designed for employees also provide advantages for companies Key employees help lead a company and keep it on the right path. So finding and keeping those key employees is a priority. Key employees also want to work for a company that values their hard work – and offers them additional ways to save for the future. A nonqualified deferred compensation plan is a smart solution for companies and their key employees. It’s designed to help top talent save beyond 401(k) plan limitations for retirement and other savings goals, while helping the organization recruit, retain, and reward them. Here’s how it works A deferred comp plan is a type of savings vehicle an organization provides to select key employees. Participants can defer a portion of their annual compensation or bonuses into the plan before taxes. And the organization promises to pay that money to the employees at a future date, plus any earnings or additional contributions the organization may offer. How a company informally finances its plan can help accomplish these goals – whether the company uses corporate owned life insurance or taxable investments, or company cash flow. “The plan allows my employer to show employees that they are fully
November 30, 2016
2016 Year-End Compliance Checklist Employment Benefit Plans Isler Dare
The following update was prepared by IslerDare PC and is shared here with their permission as Fulcrum Partners continues to provide education and insight on the changes and clarifications to rules involving employment benefit plans. You may download this report on the Resources Page (2016 Year-End Compliance Checklist) of the Fulcrum Partners website. 2016 Year-End Compliance Checklist: Employment Benefit Plans With the results of the Presidential election just behind us, it is likely that the landscape of employee benefit plans—and the regulations that govern them—will change. For the time being, however, there are still some important compliance deadlines quickly approaching, so we wanted to remind plan sponsors of these key compliance actions as 2016 comes to a close: November 15, 2016 Transitional Reinsurance Report and Fee for Self-Funded Group Health Plans: If you sponsor a self-insured group health plan, you (or your third-party administrator (“TPA”), on behalf of the plan) must report your enrollment count, calculate your reinsurance fees of $27 per covered life for 2016, and schedule the required reinsurance payment. The reinsurance payment can be made in one payment no later than January 15, 2017, or in two payments, with the first payment of $21.60 per covered life due no later than