Plans, Perks & Pay | Employee Benefits & Executive Compensation Blog

On May 16, the U.S. Supreme Court declined to rule on a challenge to the Affordable Care Act’s contraceptive mandate as applied to nonprofit religious organizations.

In Zubik v. Burwell (2016 WL 2842449, U.S., No. 14-1418, 5/16/16), the court sent back to the lower courts seven decisions that held that the ACA’s accommodation for nonprofit religious organizations did not violate the Religious Freedom Restoration Act of 1993 (RFRA) or the First Amendment. 

In reaction to the U.S. Treasury Department’s recent rejection of its proposed pension rescue plan, the Central States pension plan’s sponsor is calling on Congress to find a solution to its pending insolvency.

The Treasury Department rejected the Central States, Southeast and Southwest Areas Pension Plan’s application on May 6, 2016, because the proposed suspension failed to satisfy the statutory criteria for approval of benefit suspensions.

On May 16, 2016 the EEOC issued final rules amending the regulations and interpretive guidance implementing Title I of the Americans with Disabilities Act (ADA) and Title II of the Genetic Information Nondiscrimination Act (GINA) with respect to employer wellness programs. These changes clarify that employers may use incentives to encourage participation in wellness programs that include disability-related inquiries and/or medical examinations as long as the programs are voluntary and the incentives do not exceed certain limits. Additionally, the rules confirm that employers may provide incentives when employees’ spouses — but not children — provide certain health information.

Employee benefit plans and executive compensation arrangements are subject to a staggering amount of regulation. The laws, regulations and other guidance regarding these plans and arrangements are complex and often confusing. Audits and enforcement actions by governmental agencies against plan sponsors and fiduciaries — as well as class-action lawsuits by plan participants — have become increasingly common in recent years.