As Election Day 2022 approaches on Tuesday, Nov. 8, employers may be curious about how to best prepare.  This article covers general information about state voting leave laws and employer considerations surrounding employee leave or time off for voting. Read on...

ERISA requires a retirement plan’s assets to be held in a trust in order to ensure that the assets are used solely to benefit the plan’s participants and beneficiaries. The employer sponsoring the retirement plan is responsible for timely depositing participants’ contributions into the plan’s trust. The Department of Labor (DOL) requires employers to make these deposits as soon as the amounts can reasonably be segregated from the employer’s general assets. In addition, the DOL has established a safe harbor deadline for employers to deposit participant contributions into small retirement plans. An employer that sponsors a small plan (one with fewer than 100 participants at the beginning of the plan year) has the option of using this safe harbor for meeting the deadline for depositing employee contributions into the plan. To take advantage of the safe harbor, employers must deposit employee contributions (including plan loan repayments) within seven business days of receiving or withhol

Employers may provide their employees with various types of paid or unpaid leave as part of their overall compensation package, including vacation time, personal leave and sick leave. Employers have some flexibility when it comes to establishing or negotiating employee leave policies. However, federal laws (for example, the Family and Medical Leave Act, or FMLA) require covered employers to provide employees with leave in certain situations. In addition to federal leave laws, New York has laws regarding: Family leave; Paid sick leave; Civic duty leave; Voting leave; Military and military spouse leave; Bone marrow and blood donation leave; Adoptive parents leave; Bereavement leave; Domestic violence leave; and Emergency responder leave. Read this Employment Law Summary for a chart that provides a high-level overview of New York’s employee leave laws and suggested compliance steps for employers. For more information contact HANYS Benefit Services by  email  or by calling (800) 388-1963.

The American Rescue Plan Act (ARPA), signed into law March 11, 2021, provides a 100% subsidy of premiums for employer-sponsored group health insurance continued under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) and similar state continuation of coverage (mini-COBRA) programs. ARPA subsidies cover the full cost of COBRA or mini-COBRA premiums from April 1, 2021, through Sept. 30, 2021, for employees (and their qualifying family members), if the employee lost or loses group health insurance due to an involuntary job loss or reduction in work hours. The subsidy applies to people who are still within their original COBRA or mini-COBRA coverage period, for the length of that coverage period, even if they declined or dropped COBRA or mini-COBRA coverage earlier. The subsidy does not apply to: Individuals whose job loss was voluntary or the result of gross misconduct ; or Individuals who are eligible for another group health plan or Medicare. The subsidies are funded

On March 11, President Joe Biden signed the American Rescue Plan Act. This $1.9 trillion coronavirus relief bill includes provisions for much-needed aid for single employer and multiemployer defined benefit plans. For single employer DB plans, the total value of all participants’ accrued benefits as of the beginning of the year is known as the plan’s “funding target.” The value of the increase in the funding target from the beginning of the year to the end of the year is the “target normal cost.” The excess of the funding target over the total amount of the plan’s assets is considered a “funding shortfall.”   To ease the burden of funding shortfalls for single employer DB plans, plan sponsors were permitted to amortize (spread) contributions needed to make up for these shortfalls over seven years. The American Rescue Plan Act allows plan sponsors to extend this period to 15 years.  Since the required contribution a plan sponsor must make equals the target normal cost plus the shortfall

Why now? The plan sponsor community has been woefully unprepared to meet the increased scrutiny of 403(b) plan operations by the IRS, Department of Labor and private auditors. There has been a material spike in plan correction applications, investigations and regulatory penalties. But don’t just take our word for it. Let your fellow plan sponsors’ experiences tell the tale. Our webinar featured real life stories about sponsors just like you. Each of them had a “What, me worry?” attitude where their plan was concerned, confident that they had everything well in hand—until everything changed. Watch this webinar to learn: the pros and cons of conducting a plan operational review; when you should do it; and how much you can expect to spend. Webinar Recording FEATURED SPEAKERS: Carol Idone Vice President, Consulting HANYS Benefit Services Eric Paley Partner Nixon Peabody Claire Rowland Counsel Nixon Peabody

As described in our previous article on participant notices, plan sponsors of qualified retirement plans must routinely provide various notices to participants and beneficiaries regarding plan provisions, investment information, fees and more.  On May 21, the U.S. Department of Labor released new regulations regarding the electronic disclosure of these notices, ushering in an era of convenience for a historically arduous requirement. Electronic delivery rules have existed for years, but abiding by them has been prohibitive, particularly when delivering to employees not using a computer as an integral part of work duties. The new rules do not replace the existing ones, but instead offer a more feasible alternative to them. In short, the new safe harbor framework allows sponsors to provide required notices directly via email or to make them available on the internet under certain requisite conditions. The process can be applied for participants who have provided an email address or mobi

As described in our previous article on participant notices, plan sponsors of qualified retirement plans must routinely provide various notices to participants and beneficiaries regarding plan provisions, investment information, fees and more.  On May 21, the U.S. Department of Labor released new regulations regarding the electronic disclosure of these notices, ushering in an era of convenience for a historically arduous requirement. Electronic delivery rules have existed for years, but abiding by them has been prohibitive, particularly when delivering to employees not using a computer as an integral part of work duties. The new rules do not replace the existing ones, but instead offer a more feasible alternative to them. In short, the new safe harbor framework allows sponsors to provide required notices directly via email or to make them available on the internet under certain requisite conditions. The process can be applied for participants who have provided an email address or mobi

As we enter the fourth quarter of 2019, it’s important for sponsors of calendar year retirement plans to be mindful of certain required participant notices. Sponsors of qualified retirement plans, such as 401(k) or 403(b) plans, may need to provide several of these notices per various Internal Revenue Service and Department of Labor regulations. Notice Purpose Audience General Deadline Deadline for Calendar Year Plans Qualified Default Investment Alternative Informs of the plan’s default investment in the event the participant does not make an investment election.  Helps maintain 404(c) protection. Active eligibles and terminated participants At least 30 days ahead of plan year Dec. 2 Automatic Contribution Arrangement Informs of the plan's feature to automatically enroll participants to a default savings rate in the plan and the potential “refundability” of deferrals. Active eligibles 30 to 90 days ahead of plan year Dec. 2 Safe Harbor

As we enter the fourth quarter of 2019, it’s important for sponsors of calendar year retirement plans to be mindful of certain required participant notices. Sponsors of qualified retirement plans, such as 401(k) or 403(b) plans, may need to provide several of these notices per various Internal Revenue Service and Department of Labor regulations. Notice Purpose Audience General Deadline Deadline for Calendar Year Plans Qualified Default Investment Alternative Informs of the plan’s default investment in the event the participant does not make an investment election.  Helps maintain 404(c) protection. Active eligibles and terminated participants At least 30 days ahead of plan year Dec. 2 Automatic Contribution Arrangement Informs of the plan's feature to automatically enroll participants to a default savings rate in the plan and the potential “refundability” of deferrals. Active eligibles 30 to 90 days ahead of plan year Dec. 2 Safe Harbor

Many employers provide disability benefits to their employees as part of a comprehensive employee benefits package. Disability benefits replace a percentage of pre-disability income if an employee is unable to work due to illness or injury for a specified period of time. Employers may offer short-term disability coverage, long-term disability coverage, or integrate both short- and long-term disability coverage. Group disability benefits can be structured in a number of ways. The taxability of these benefits generally depends on how the premiums for the coverage are paid. For example, if an employer and its employees split the cost of premiums for disability coverage, and the employees’ premiums are paid on a pre-tax basis through a cafeteria plan, the disability benefits are fully taxable to employees. This Compliance Overview answers common questions regarding the taxability of disability benefits. Are the disability benefits paid to an individual included in gross income?    Benefits

Many employers provide disability benefits to their employees as part of a comprehensive employee benefits package. Disability benefits replace a percentage of pre-disability income if an employee is unable to work due to illness or injury for a specified period of time. Employers may offer short-term disability coverage, long-term disability coverage, or integrate both short- and long-term disability coverage. Group disability benefits can be structured in a number of ways. The taxability of these benefits generally depends on how the premiums for the coverage are paid. For example, if an employer and its employees split the cost of premiums for disability coverage, and the employees’ premiums are paid on a pre-tax basis through a cafeteria plan, the disability benefits are fully taxable to employees. This Compliance Overview answers common questions regarding the taxability of disability benefits. Are the disability benefits paid to an individual included in gross income?    Benefits

HANYS Benefit Services wants to help you stay compliant with the 2018 Retirement Services Compliance Calendar and Notices Reminder . Compliance is just one of many services we provide. HANYS Benefit Services created this document to remind plan administrators of the compliance deadlines and notices required for distribution. If you have any questions regarding compliance requirements or their application to your plan, contact us at (800) 388-1963 or at hbs@ hanys.org.

On Monday, November 27, 2017, the Department of Labor (DOL) announced that some key provisions of the fiduciary rule will be extended for 18 months. The fiduciary rule, in its most basic context, requires brokers and advisors to act in the best interests of their clients who have retirement accounts, including IRAs and rollovers from qualified retirement plans, including 401(k) and 403(b) plans.  The DOL first proposed the regulations in October 2010 but withdrew them in 2011 after opposition from the financial services industry as well as some members of Congress.  The regulations were reintroduced in 2015 with the final rule becoming effective June 7, 2016.  Compliance with the rules surrounding broker conduct and disclosure was delayed until April 10, 2017.  A transition period for compliance with some of the provisions was put in place from April 10, 2017 until January 1, 2018.  This latest delay will extend implementation of the enforcement provisions of the rule until July 1, 201

1. Document all decisions— Appoint a secretary to take notes on all actions and decisions. 2. Hold retirement plan committee meetings regularly— Quarterly is the best practice; make sure your people get there and have a good attendance record. 3. Appoint qualified committee members— If you want to bring in people from different departments within the hospital to have them more involved in the retirement plan process, be sure that people are chosen who understand how the retirement plan and investments work. You also need to have an odd number of people on the committee to avoid votes that end in a tie. 4. Periodically review plan operations and providers— Review the scope of services in the service agreements with all plan providers to ensure these services are still needed and are of high quality. Make sure the plan administrator and service providers are administering the plan in accordance with the plan document. 5. Ensure ERISA compliance— ERISA Sec. 404(c) protects plan sponsors

Retirement plan sponsors have a difficult challenge: balancing the desire to offer a valued and valuable retirement plan to their employees, with the administrative and regulatory requirements and expense of maintaining the plan. Experts agree that plan sponsors can help address these issues by consistent adoption of plan administration and oversight best practices.These steps can lower costs, increase plan enrollment, boost savings rates, and better prepare employees for a more secure retirement, while helping mitigate the risk borne by plan fiduciaries. Industry best practices suggest that plans be put out to bid every three to five years. Putting plans out to bid allows plan sponsors to take advantage of changing conditions and overall marketplace competition. This ensures they are offering their employees a cost competitive plan and one where a record keeper uses current technology for both the plan and its participants. A three- to five-year frequency does not have to needlessly b

Act solely in the interest of plan participants — This may seem obvious, but you cannot prioritize your board, president, or local community interests over the plan participants. Act prudently — The duty to act prudently requires expertise in areas such as investment. Lacking that expertise, a fiduciary should hire someone with that professional knowledge. Fiduciaries are responsible for a decision process, not investment results. The process used to make decisions must be documented to show fiduciaries acted prudently.  Capture more detail than you typically would when documenting an employee benefits-related decision as a fiduciary, . You do not just say, “The retirement plan committee reviewed the investment menu and the performance over the last six months and discussion ensued.” Instead, say something like, “There was a discussion about fund ABC, which almost but not quite met the watch list criteria that we set up in the investment policy statement and the committee decided to p

As of June 30, 2017 U.S. equities advanced for the seventh consecutive quarter, with the S&P 500 Index gaining 3.09% in the second quarter and 9.34% year to date. With the economic expansion and the bull market for stocks both in their eighth year, it is understandable that many investors are nervous about a market correction. Equity prices are reflecting a very solid U.S. economy, operating at full potential and full employment. Most of the economic data followed by investors has been positive: surges in Leading Economic Indicators, and the Small Business Optimism Index; accelerating global Gross Domestic Product (GDP) growth forecast; rising housing starts; strong Purchasing Managers Indexes (manufacturing and service sectors), strong hiring, declining unemployment, record low weekly unemployment claims and high quit rate; low inflation; strong consumer data: growth in average hourly earnings/real disposable personal income, household balance sheets, savings rates, credit scores,

Pension Risk Transfer: Why Now? Healthcare finance executives are faced with many challenges. One such challenge is managing the inherent liability and cost associated with their Defined Benefit Pension Plan. This webinar will focus on pension risk transfer (PRT) strategies and why now may be the right time to implement them. Join this special webcast to learn: pension de-risking concerns and solutions;  what PRT steps are available now to plan sponsors; and  why plan sponsors should consider acting now to take advantage of these strategies.  CLICK HERE to register Wednesday, May 24 at 11:00 a.m. PRESENTERS : Peter Margiotta Vice President, Business Development HANYS Benefit Services Michael E. Devlin  Principal BCG Pension Risk Consultants

HANYS Benefit Services wants to help you stay compliant with our  2017 Retirement and Employee Benefits Compliance Calendar . Compliance is just one of many services HBS provides, including Plan Design,Plan Provider Management, and Co-Fiduciary Services. If you have any questions regarding compliance requirements or their application to your plan, contact us at (800) 388-1963 or at  hbs@ hanys.org .