In a special extended episode of EBN's podcast series "Five Minutes With ...", our eight featured columnists draw on their unique expertise to answer, “What is the most important challenge currently facing benefits professionals and how can they best meet that challenge?”
Click here to download the podcast, and click below to read more from and about EBN's columnists:
* Karrie Andes
* Nancy Bolton
* Jill Hudgins
* Jerry Kalish
* Betty Long
* Mark Nadler
* Frank Palmieri
* Michael Puck
Showing posts with label frank palmieri. Show all posts
Showing posts with label frank palmieri. Show all posts
Friday, May 15, 2009
Thursday, May 14, 2009
Tip of the Day: Weighing the pros and cons of 401(k) loans, distributions
During the recession, more employees are taking tomorrow's savings to pay for today's needs -- taking 401(k) loans, hardship distributions or cashing out their plans altogether.
EBN legal eagle Frank Palmieri writes this month that while some employers seek to protect employees and only allow loans for limited purposes and others employers even restrict hardship distributions, it's important to understand the basic rules in making business decisions to allow or not allow such distributions. Click here to read his column.
EBN legal eagle Frank Palmieri writes this month that while some employers seek to protect employees and only allow loans for limited purposes and others employers even restrict hardship distributions, it's important to understand the basic rules in making business decisions to allow or not allow such distributions. Click here to read his column.
Thursday, April 9, 2009
Tip of the Day: COBRA model notice error? No biggie.
Us EBNers got a little nervous this week, after one of us received an e-mail blast screaming of a "Material Error in DOL New Model Notice for COBRA Subsidy."
Long story short, the adviser that sent the message was concerned that in DOL's model notices for notifiying ex-employees of the COBRA subsidy, the election period on the notices doesn't jibe with federal regulations for the subsidy.
According to the rules, a COBRA-eligible ex-worker has 60 days to elect coverage from the date of termination of coverage or the date of the notice, whichever is later. However, DOL’s model notice does not contain language noting the 60-day election period may begin as of the date of termination of coverage.
Thus, the adviser worried, if employers sent a COBRA election package to ex-employees before their group coverage ended, the model notice implies the COBRA election period is shorter than it should be. Such an interpretation could leave employers open to litigation from ex-workers for not allowing the full 60-day election period, as well as on the hook for incurred medical claims.
However, EBN Contributing Editor and benefits attorney Frank Palmieri says, "I do not see it as a 'sky is falling' issue. Most employers do not send the notices early. I don’t see it as an error, but rather that the notice can be improved to address early issuance. Few employers are going to deny COBRA during this transition period, given all the confusion."
Sigh of relief, eh pros? However, that's surely not to say the COBRA subsidy hasn't been a tough issue to wade through. How are you coping? Comment and let me know.
Long story short, the adviser that sent the message was concerned that in DOL's model notices for notifiying ex-employees of the COBRA subsidy, the election period on the notices doesn't jibe with federal regulations for the subsidy.
According to the rules, a COBRA-eligible ex-worker has 60 days to elect coverage from the date of termination of coverage or the date of the notice, whichever is later. However, DOL’s model notice does not contain language noting the 60-day election period may begin as of the date of termination of coverage.
Thus, the adviser worried, if employers sent a COBRA election package to ex-employees before their group coverage ended, the model notice implies the COBRA election period is shorter than it should be. Such an interpretation could leave employers open to litigation from ex-workers for not allowing the full 60-day election period, as well as on the hook for incurred medical claims.
However, EBN Contributing Editor and benefits attorney Frank Palmieri says, "I do not see it as a 'sky is falling' issue. Most employers do not send the notices early. I don’t see it as an error, but rather that the notice can be improved to address early issuance. Few employers are going to deny COBRA during this transition period, given all the confusion."
Sigh of relief, eh pros? However, that's surely not to say the COBRA subsidy hasn't been a tough issue to wade through. How are you coping? Comment and let me know.
Tuesday, March 24, 2009
News You Can Use: EBN sponsors COBRA web seminar
On the heels of last week's release of Department of Labor model notices to guide employers in explaining the federal COBRA subsidy for laid-off workers, EBN and sister publication Employee Benefit Adviser will moderate an informational web seminar tomorrow, March 25, offering more information about the notices and subsidy.
The session's featured speakers will be EBN Contributing Editor Frank Palmieri, founding partner of Palmieri and Eisenberg, and William Sweetnam, Jr. from Groom Law Group. Both are members of the American College of Employee Benefits Counsel.
Click here for registration information.
The session's featured speakers will be EBN Contributing Editor Frank Palmieri, founding partner of Palmieri and Eisenberg, and William Sweetnam, Jr. from Groom Law Group. Both are members of the American College of Employee Benefits Counsel.
Click here for registration information.
Monday, March 23, 2009
Tip of the Day: Devil is in details of RMD suspension
This month, Contributing Editor and EBN legal eagle Frank Palmieri helps you find the devil in the details of the federal suspension of the required minimum distribution provision in the Worker, Retiree and Employer Recovery Act. WRERA suspends for 2009 IRS rules that compelled retirees age 70 1/2 and older to take required minimum distributions from defined contribution retirement plans and IRAs.
Although the law's goal was reasonable and the solution simple, it leads to inevitable complexity. Why can't anything in this industry ever be simple?
Read what Frank advises here.
Although the law's goal was reasonable and the solution simple, it leads to inevitable complexity. Why can't anything in this industry ever be simple?
Read what Frank advises here.
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