ISS Issues October 2024 Update to its Executive Compensation Policies FAQs
Proskauer » Employee Benefits & Executive Compensation
by Jesse T. Foley, Colleen Hart, Andrea Rattner and David Teigman
17h ago
In October, Institutional Shareholder Services (“ISS”) released an off-cycle update to its Executive Compensation Policies Frequently Asked Questions (the “FAQs”), which are available at this link:  US-Compensation-Policies-FAQ.pdf (the new questions are highlighted in yellow).  As described in more detail below, the updates to the FAQs address ISS’s criteria for recognizing “robust” clawback policies and realizable ..read more
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Sixth Circuit Again Invalidates ERISA Plan Arbitration Clause
Proskauer » Employee Benefits & Executive Compensation
by Joseph Clark and Jessica Wang
5d ago
The Sixth Circuit recently reversed a district court’s dismissal, and order requiring arbitration of, a proposed class action alleging fiduciary breaches in connection with the Kellogg Company 401(k) plan.  Fleming v. Kellogg Co., 2024 WL 4534677 (6th Cir. Oct. 21, 2024).  In so ruling, the Sixth Circuit added to the list of recent decisions in ..read more
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Final Mental Health Parity Regulations Released, with Plan Sponsor Action Required by 2025
Proskauer » Employee Benefits & Executive Compensation
by Jennifer Rigterink and Robert Projansky
1M ago
Last week, the Departments of Labor, Treasury, and Health and Human Services finalized regulations implementing the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA).  Although the final regulations step back from certain burdensome aspects of the proposed rules (which we blogged about here), compliance with the final rules will require action from virtually ..read more
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DOL Updates Guidance on Pension and Health & Welfare Plan Cybersecurity Best Practices
Proskauer » Employee Benefits & Executive Compensation
by Katrina McCann
1M ago
In 2021, the U.S. Department of Labor (DOL) issued 3 documents outlining guidance on cybersecurity practices for benefits plans, which we discussed in a blog post at the time. The DOL recently issued revised versions of the original three documents in its Compliance Assistance Release No. 2024-01. The revised versions of these documents clarify that ..read more
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Massachusetts District Court Permits 403(b) Plan Fiduciary Breach Claims to Proceed
Proskauer » Employee Benefits & Executive Compensation
by Joseph Clark and Jessica Wang
2M ago
A federal district court in Massachusetts recently denied a motion to dismiss a complaint filed by plan participants in the Cape Cod Healthcare, Inc. 403(b) plan, which alleged that the plan’s fiduciaries breached their ERISA duty of prudence by permitting the plan to pay excessive recordkeeping fees and remain invested in overpriced, underperforming investment options ..read more
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Interaction between COBRA and Medicare in C-Suite Executive Severance and Retirement Arrangements
Proskauer » Employee Benefits & Executive Compensation
by Tyler Forni, Katrina McCann and David Teigman
2M ago
Both companies and their C-suite executives should be mindful of the interactions between COBRA and Medicare and their implications when negotiating a severance or retirement arrangement. This is because Medicare enrollment can terminate COBRA coverage, depending on the timing of when an executive elects COBRA and when they enroll in Medicare, and because an executive ..read more
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Texas Federal Court Sets Aside FTC’s Non-Compete Rule, Halting It From Taking Effect on September 4, 2024
Proskauer » Employee Benefits & Executive Compensation
by Allan Bloom, Lloyd B. Chinn, Evandro Gigante, Steven Hurd, Steven J. Pearlman, Pinchos Goldberg and Scott Tan
2M ago
On August 20, 2024, in Ryan LLC v. Federal Trade Commission, No. 3:24-cv-00986-E (N.D. Tex.), the United States District Court for the Northern District of Texas granted summary judgment to the plaintiffs and ordered the Federal Trade Commission’s (“FTC”) non-compete rule (the “Rule”) to be set aside with respect to all employers nationally and that ..read more
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Eleventh Circuit Reiterates that Burden of Proving Loss Causation Stays with Plaintiffs
Proskauer » Employee Benefits & Executive Compensation
by Joseph Clark and Jessica Wang
2M ago
The Eleventh Circuit Court of Appeals recently affirmed a district court’s grant of summary judgment in favor of the fiduciaries of the Home Depot 401(k) plan, who defended against claims that they breached their fiduciary duties by permitting the plan to pay excessive financial advisor fees and retaining underperforming investments. In so ruling, the court ..read more
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Recent Health Plan Litigation Puts Family Building Benefits in Focus
Proskauer » Employee Benefits & Executive Compensation
by Jennifer Rigterink and Katrina McCann
2M ago
Family building benefits continue to be top of mind as employers and plan sponsors implement new benefit programs to support family building journeys for their employees.  At the same time, there have been a few recent lawsuits challenging health plan eligibility criteria for infertility treatment coverage.  This post summarizes the recent litigation and challenges for ..read more
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Reminder: Is Your Individually Designed 403(b) Plan Eligible for a Determination Letter?
Proskauer » Employee Benefits & Executive Compensation
by Jesse T. Foley and Katrina McCann
3M ago
Plan sponsors of Code Section 403(b) tax-sheltered annuity plans (“403(b) plans”) that have not already done so may want to consider applying for an IRS determination letter or planning and budgeting for the process next year if they are not yet eligible. In June, the IRS determination letter program became available to a second group ..read more
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