The employee benefits legal landscape is constantly evolving and challenging employers to keep up with the latest developments. In a recent webinar, the Nixon Peabody Employee Benefits team reviewed pressing topics and shared practical guidance for plan sponsors and fiduciaries.
Watch the Nixon Peabody Employee Benefits Briefing (November 2023) webinar
Retirement plan fee litigation remains a source of risk for plan sponsors who should revisit their fiduciary processes and evaluate their options for minimizing that risk.
SECURE Act 2.0 will introduce significant changes and opportunities for retirement plans, such as:
- Allowing employees to make Roth contributions on employer matching contributions
- Offering penalty-free emergency withdrawals for natural disasters, domestic violence, and terminal illness
- Increasing the mandatory cash-out limit to $7,000
Plan sponsors should start planning for the mandatory changes that will take effect in 2024 and consider which optional features they will adopt.
Health and welfare plans are facing increased scrutiny and regulation, particularly with respect to Mental Health Parity and Addiction Equity Act compliance. Plan sponsors should put the wheels in motion to perform and prepare comparative analyses showing their plan’s compliance with non-quantitative treatment limitations.
Further, plan sponsors need to be aware of a looming deadline under the transparency provisions of the Consolidated Appropriations Act of 2021 and coordinate with their third-party administrators and vendors to ensure that their gag clause attestations are timely submitted to the Department of Health and Human Services by December 31, 2023.
Last, in the wake of recent data breaches, plan sponsors should review their vendor agreements and cybersecurity policies to ensure they protect sensitive participant information and HIPAA-covered health data and comply with industry standards.