Benefits Myth Busters Moderator: Lisa Zimmer Panelists: Heidi Lyon and Kent Sparks 2017 Warner Norcross & Judd LLP. All rights reserved.
Welcome Introductions Format myth or truth Questions encouraged 2017 Warner Norcross & Judd LLP. All rights reserved. Page 2
#1 Myth or Truth? When we make a mistake, we re legally required to correct it. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 3
#2 Myth or Truth? The Employee Retirement Income Security Act (ERISA) only applies to retirement plans. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 4
#3 Myth or Truth? All expenses connected to a plan can be paid from plan assets. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 5
#4 Myth or Truth? Email is acceptable for all notices and disclosures. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 6
#5 Myth or Truth? Only very large plans get sued. Litigation Targets: Walmart, Kraft, Fidelity, Lockheed Martin, Caterpillar, Nationwide...Mom & Pop Shop? 2017 Warner Norcross & Judd LLP. All rights reserved. Page 7
#6 Myth or Truth? Nondiscrimination testing does not apply to health and welfare plans. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 8
#7 Myth or Truth? A safe harbor retirement plan is exempt from all nondiscrimination testing. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 9
#8 Myth or Truth? With the new administration, I don t have to worry about compliance. There won t be any enforcement. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 10
#9 Myth or Truth? My retirement plan is free. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 11
#10 Myth or Truth? We use leased employees, so we don t have to worry about whether they have employee benefits. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 12
#11 Myth or Truth? We don t have to pay FICA on an executive s deferred compensation until the compensation is paid. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 13
#12 Myth or Truth? If an employee makes a mistake during open enrollment for health and welfare benefits, we can change the election to what she really wanted. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 14
#13 Myth or Truth? The recordkeeper told us most plans do this and we re an outlier if we don t. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 15
#14 Myth or Truth? The insurance policy says that it s an SPD, so we can distribute just that document to participants. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 16
#15 Myth or Truth? If we have the biggest recordkeeper, we can rely on their investment advice due to their reputation. An independent fiduciary advisor would just add fees. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 17
#16 Myth or Truth? A rehired employee can always make new health and welfare benefit elections. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 18
#17 Myth or Truth? A participant electing a lump sum payment instead of an annuity will end up with a richer benefit. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 19
#18 Myth or Truth? We can amend our plan by writing in the margins or communicating the change to participants. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 20
#19 Myth or Truth? We re not responsible for proxy voting. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 21
#20 Myth or Truth We can let participants in an HSA use the telemedicine feature without any additional out-of-pocket cost. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 22
Questions & Answers Thank you! Lisa Zimmer Warner Norcross & Judd LLP 2000 Town Center, Suite 2700 Southfield, Michigan 48075-1318 lzimmer@wnj.com Heidi A. Lyon Warner Norcross & Judd LLP 111 Lyon Street, NW, Ste. 900 Grand Rapids, MI 49503 hlyon@wnj.com Kent Sparks Warner Norcross & Judd LLP 111 Lyon Street, NW, Ste. 900 Grand Rapids, MI 49503 ksparks@wnj.com These materials are for educational use only. This is not legal advice and does not create an attorney-client relationship. 2017 Warner Norcross & Judd LLP. All rights reserved. Page 23