3. 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
4. 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
5. 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
6. 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
7. 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)
8. 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
9. Questions?
Bret F. Busacker
bbusacker@hawleytroxell.com
208.388.4885
www.hawleytroxell.com
