2012 Employee Benefits Outlook Bret F. Busacker HawleyTroxell 208.388.4885 email@example.com
Sailing through Rough Waters Managing RiskMonitoring Compliance
The Basics for Maintaining a Tight Ship • Evaluate who has administrative authority over ERISA plans • Delegate authority to a benefits committee, investment committee and/or HR committee (as appropriate) • Establish a charter for the committees to set forth responsibilities, obligations and to limit authority (as appropriate) • Meet regularly (quarterly is standard) • Review expenses charged to the plans • Review investments • Evaluate benefits and make plan changes
Increased Regulatory Scrutiny• Increased Audits (Federal and State) – Qualified plan audits – Fiduciary compliance – Section 409A audits – Payroll audits – Worker classification audits• Increased Regulation – Dodd-Frank – Health care reform
Beyond the Basics in Retirement Plans (2012 DOL Focus on Fiduciaries)• Fee Disclosure – Service provider fee disclosure – Participant fee disclosure – Benchmarking• Understand Your Role – Named fiduciary – Investment/asset fiduciary – RIAs v. asset managers• Where to Start – Review plan documents – Review service agreements – Review delegations – Come up with a comprehensive strategy
Focus on Cleaning up Severance Arrangements in 2012• Severance Pay – Makings payments contingent on release – Changing payment schedule – ERISA considerations• Health Care Benefits – Insured plans – Self-insured plans – Recent COBRA case• Increased litigation – Acknowledge fiduciary responsibilities – Federal v. state court – Preparing for regulatory changes
Executive Compensation Issues (Public Companies)• Incentive plan compliance – Employment agreement issues – Per employee/per period stock option rules – Planning for unusual events – Burn rate issues• Monitor ISS and other shareholder services guidance – Multiple years of sub-peer shareholder return – SSOP frequency guidance – 2012 SSOP position (less than 70% support)• Monitor Dodd-Frank compliance – CEO Compensation Chart – Pay for performance graph – Clawback rules• SOX enforcement (clawbacks)
Welfare Benefits Focus in 2012• Healthcare Reform in 2012 – Predictions – Continued implementation – Managing compliance• Disclosures – Grandfathered status – Age 26 dependent (transitional rule may apply) – Lifetime limits (transitional rule may apply)• Plan document issues – Cigna v. Amara – Identifying your plan document – Material modification notice requirements• W-2 Reporting for 2012
Questions? Bret F. Busackerbbusacker@hawleytroxell.com 208.388.4885 www.hawleytroxell.com
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