Media Mentions
2011
“The Danger of Fiduciary Status for Valuation Firms”
Law360, March 18, 2011
Jonathan Boyles and Jeffrey Rothschild wrote that proposed Department of Labor (DOL) regulations defining valuation firms as ERISA fiduciaries could lead those firms to exit the market because of the personal liabilities imposed on fiduciaries for breach of the stringent “prudent man” rule. The alternative for such firms is to purchase expensive fiduciary liability insurance, which raises their costs.
Jonathan J. Boyles, Jeffrey Rothschild, Corporate, Employee Benefits
2010
“Multi-Employer Pensions May Face Painful Disclosures”
Compliance Week, November 2, 2010
Jonathan Boyles noted that a proposed Financial Accounting Standards Board rule on more disclosure of companies’ obligations in multi-employer plans may be difficult to meet because a company likely has data only on its own obligations, not the entire plan. The overall impact is important because “there’s a lot of concern about what’s happening with these plans, the increased contributions and the withdrawal liabilities,” Mr. Boyles said. “If a substantial number of employers withdraw, you can have a mass liability.”
Jonathan J. Boyles, Employee Benefits, Executive Compensation
Jonathan Boyles was interviewed in an Employee Benefits Advisor “Raw Bar” podcast on July 6 concerning a provision in the health reform law that will limit the ability of many health insurers to deduct compensation, including commissions, paid to employees and "individual service providers," starting in 2013. The law establishes a new $500,000 deduction limit for any employer that issues health insurance (including insurance companies and HMOs), and the deduction limit applies to all employees, officers and directors, as well any individual providing services for or on behalf of the health insurer or any related company in its controlled group, such as consultants and brokers. “Right now I think the most important thing will be to determine if the limitation will apply to the insurer and to get a sense of where your premium is coming from as an insurer, particularly in the case of stop-loss coverage” Mr. Boyles declared.
Jonathan J. Boyles, Employee Benefits
2009
Jonathan Boyles was quoted by Standard Federal Tax Reports on September 17 concerning new Internal Revenue Service procedures by which multiemployer plans that have critical financial problems can request automatic revocation of a Section 204 election to freeze funded status. IRS guidance formerly did not address whether plan sponsors could revisit their previous elections, and the new rules allow such an election to be revoked, but not revised. “The new guidance will allow plan sponsors additional time to consider their elections,” Mr. Boyles stated, “although the time for revoking the election is limited.”
Jonathan J. Boyles, Employee Benefits
Jonathan Boyles was quoted by Standard Federal Tax Reports on June 25 concerning the new IRS Schedule M, which some pension recipients must file with their Forms 1040/1040A. The Schedule reflects new and optional withholding adjustment procedures for pension plans, and Mr. Boyles advised that “plan sponsors are not required to contact pensioners regarding the revised tables, although the IRS has encouraged plan sponsors to be proactive and contact pensioners … to ensure the[ir] withholding intent is properly effected. He added that “whether or not plan sponsors and their vendors implement the new tables, plan sponsors should be prepared to respond to participant inquiries.”
Jonathan J. Boyles, Employee Benefits
Jonathan Boyles commented for CCH Standard Federal Tax Reports (May 7) on the IRS extension of the deadline for employers to make elections on strengthening underfunded multiemployer defined benefit plans. Mr. Boyles said the extension will give plan fiduciaries "additional time to consider their options." In particular he cited "the option of entering 'yellow zone' endangered status or 'red zone' critical status and making an election to extend the funding improvements or rehabilitation plan by an additional three years."
Jonathan J. Boyles, Benefits Plan Compliance, Employee Benefits
