Administration and Catholics Tangle Over Mandatory Contraception Coverage
The administration will not reconsider the decision, White House spokesman Jay Carney said yesterday, according to the Associated Press. (AP via Washington Post)
Domestic Policy Council Director's Statements on White House Blog About Contraceptive Mandate
"Over half of Americans already live in the 28 States that require insurance companies cover contraception: Several of these States like North Carolina, New York, and California have identical religious employer exemptions. Some States like Colorado, Georgia and Wisconsin have no exemption at all." (The White House Blog, written by Cecilia Mu?oz, Director of the White House Domestic Policy Council)
[Opinion] Protestants and Jews Declare to White House: We Stand With Catholics
"[M]ore than 40 non-Catholic religious organizations including Protestant-affiliated colleges, National Association of Evangelicals, Focus on the Family, Assemblies of God, Northwest Nazarene University, and Eastern Mennonite University, sent a letter to the White House demanding religious protection against the newly issued HHS contraceptive mandate." (Becket Fund)
Anger Brewing on the Left About Mandatory Contraceptive Coverage for Employees of Religious Employers
"Megan McArdle, senior editor of the Atlantic, wrote yesterday that it might be in Americans' interest to be more flexible with faith-based organizations because they provide such a depth of social services (publicly funded in many cases, of course) . . . ." (Washington Post)
[Opinion] Obamacare's Contraception Mandate Tramples on Religious Liberty
"Exemption of religious institutions from the Obamacare contraception mandate does not involve a clash of the constitutional rights of a religious employer with the constitutional rights of its employees regarding contraception (as enunciated by the U.S. Supreme Court in Griswold v. Connecticut, 1965) or abortion (Roe v. Wade, 1973). Such an exemption in no way limits the freedom of employees of those religious institutions to obtain contraceptive services, to obtain insurance covering contraceptive services from a source other than their employer, or to seek employment with other than a religious employer." (The Heritage Foundation)
[Guidance Overview] Supreme Court Recognizes 'Ministerial Exception' to Federal, State Employment Laws
"A 'ministerial exception' shields religious organizations -- including hospitals, schools and corporations with religious affiliations -- from potential liability under state and federal employment laws, the U.S. Supreme Court has ruled [in Hosanna-Tabor Evangelical Lutheran Church & School v. EEOC, decided January 11, 2012]." (Mercer Select)
[Opinion] Disregarding Religious Beliefs: Obama's Radical Power Grab on Health Care
"There would have been no controversy at all if President Obama had simply exempted religious institutions and ministries. But the administration insisted that the University of Notre Dame and St. Mary's Hospital be forced to pay for the privilege of violating their convictions. Obama chose to substantially burden a religious belief, by the most intrusive means, for a less-than-compelling state purpose -- a marginal increase in access to contraceptives that are easily available elsewhere." (Michael Gerson in the Washington Post; free registration required)
Catholic Clergy Come Out Swinging Against HHS Regulation Mandating Cost-Free Contraceptives
"Catholics around the country got an earful on Sunday from the pulpit over a new health insurance policy by the U.S. Department of Health and Human Services that forces employers to cover contraception and abortion as part of preventative care regardless of religious beliefs. The use of abortion and contraceptives violates Catholic teachings." (CNN Belief Blog)
Workers Fight Switch to 'Church Plan' Status of Pension Plans
"[A] growing number of plan sponsors with less-direct ties to religious organizations have been declaring themselves church plans and asking the Internal Revenue Service to issue private-letter rulings confirming the exemptions, which free the plans from federal funding requirements. They can stop paying PBGC insurance premiums and can even receive a refund of up to six years of insurance premiums . . . ." (Reuters)
Workers Fight Switch to Church Pension Plans
"[ERISA] has always exempted plans operated directly by churches for their clergy and employees to make it easier for the churches to operate their plans. A 1980 amendment to ERISA clarified that the exemption also applied to church pension boards, which administer group pension plans for church employees. But since then, a growing number of plan sponsors with less-direct ties to religious organizations have been declaring themselves church plans and asking the [IRS] to issue private-letter rulings confirming the exemptions, which free the plans from federal funding requirements." (Thomson Reuters)
[Opinion] Obamacare 'Contraceptive' Mandate Made in Bad Faith
"Since the FDA approves, as 'contraceptives,' drugs such as Plan B and Ella that may cause early-stage abortions, the federal government could force nearly every employer in America to pay for abortions and sterilizations. Colleges and universities providing insurance to their students will face the same requirement." (BostonHerald.com)
[Guidance Overview] HHS Extension of Compliance Date for Contraceptives Coverage for Certain Nonprofit Employers
"The delayed implementation rule does not expand the scope of religious employers who are exempt from the requirement to cover contraceptives under earlier guidance." (Practical Law Company)
Administration Rules Insurers Must Cover Contraceptives
"The rule includes an exemption for certain 'religious employers,' including houses of worship. But church groups said the exemption was so narrow that it was almost meaningless. A religious employer cannot qualify for the exemption if it employs or serves large numbers of people of a different faith, as many Catholic hospitals, universities and social service agencies do." (New York Times; free registration required)
Has Obama Waged a War on Religion?
"If you're looking for evidence that the Obama administration is hostile to faith, conservatives say, the new health care law is Exhibit A. The law requires employers to offer health care plans that cover contraceptives. Churches don't have to, but religiously affiliated charities, hospitals and colleges do." (NPR)
ERISA Pension Protections Avoided Through Church Affiliation
"Legal exemptions that allow church-affiliated organizations to sidestep Employee Retirement Income Security Act protections for their defined benefit pension plans increasingly are being used for less-than-holy purposes, according to pension activists who see a disturbing trend among plan sponsors." (Business Insurance)
Is Your Pension Plan Having a Religious Conversion? Here's What You Can Do
"As a result of a new IRS procedure, any pension plan that wishes to 'convert' its federally-protected pension plan to a 'church plan' is now required to notify the people covered by the plan that the plan intends to seek IRS approval to convert. What does such a conversion mean for you? . . . Here's what you can do:" (Pension Rights Center)
[Guidance Overview] IRS Rev. Proc. 2011-44 Prescribes New Procedures for Church Plan Rulings
"[T]he main impact of the ruling will be on underfunded defined benefit plans, where participants have an especially direct interest in whether the plan is subject to ERISA, and covered by PBGC insurance, than in a typical church defined contribution plan." (Groom Law Group via Bureau of National Affairs)
Religious Groups Want Relief from Birth Control Mandate
"Right now, the religious exemption included in the rules 'is so narrow that it excludes virtually all Catholic hospitals, elementary and secondary schools, colleges and universities, and charitable organizations,' Jane Belford, chancellor of the Archdiocese of Washington, told the House Energy and Commerce Subcommittee on Health." (National Public Radio)
[Guidance Overview] New Notice Requirements for Retirement Plans Seeking IRS Approval of Church Plan Status
"The guidance provides rules regarding the timing and method for providing the notice as well as a Model Notice that applicants can modify as required." (McDermott Will & Emery)
[Guidance Overview] Updated Chart of IRS and Social Security Limits Reflects 2012 Limits
For the first time since 2009, the limitations on retirement plans and Social Security contributions have been raised. Chart shows the new limits for 2012. (Calhoun Law Group, P.C.)
[Guidance Overview] Defined Benefit Plans Must Make Required Payments (PDF)
"This information applies to sponsors of qualified defined benefit plans, including governmental plans and non-electing church plans." (Prudential Retirement)
[Guidance Overview] New IRS Church Plan Guidance Should Influence Participant Disclosures
"The notice, for which the IRS has provided a model, is intended to let employees know that their employer is seeking a church plan ruling for its identified plans and explain the consequences to them (as plan participants) of such a ruling." (Verrill Dana, LLP)
Poor Economy and Pension Issues Challenge Clergy of All Denominations
"Like their secular counterparts, many clergy who devoted their attention to less temporal matters than financial planning now find themselves amid shrinking church budgets and a poor economy being forced to work beyond traditional retirement ages. It is an especially critical issue in smaller churches that still do not set aside money for clergy retirement." (The Association of Religion Data Archives)
[Guidance Overview] IRS Revenue Procedure Requiring Notices of Requests for Church Plan Status (PDF)
"Effective Sept. 26, IRS will not issue rulings that a qualified tax code Section 401(a), 403(a), or 403(b) plan is a church plan unless the new notice requirement has been satisfied, according to IRS Revenue Procedure2011-44." (The Bureau of National Affairs, Inc. via Pension Rights Center)
[Guidance Overview] IRS Establishes Church Plan Procedures
"The IRS believes participants in a church plan seeking confirmation of nonelecting status should get advance notice, because of the fact that a nonelecting church plan is not subject to ERISA or ERISA plan tax code requirements." (National Underwriter Life & Health)
[Official Guidance] Text of IRS Rev. Proc. 2011-44: Revised Procedure for Church Plans Filing a Request for a Determination Letter (PDF)
"The purpose of this revenue procedure is to supplement the procedures for requesting a letter ruling under ? 414(e) of the [IRC] relating to church plans. This revenue procedure modifies Rev. Proc. 2011-4, 2011-1 I.R.B. 123, to require that plan participants and other interested persons receive a notice in connection with a letter ruling request under ? 414(e) for a qualified plan, to require that a copy of the notice be submitted to the [IRS] as part of the ruling request, and to provide procedures for the IRS to receive and consider comments relating to the ruling request from interested persons." (U.S. Internal Revenue Service)
[Guidance Overview] Church Plan Administrators Are Subject to State Law Claims
"[T]he recent case of Johnson v. The Evangelical Lutheran Church in America provides a reminder that church plan administrators can be subject to breach of fiduciary duty claims and breach of contract claims under state law. Because many church retirement plans are underfunded, administrators of those plans will want to pay close attention to the Johnson case as it moves forward." (Verrill Dana, LLP)
House OKs Collective Trust Investments by 403(b) Church Plans
"Churches maintaining 'retirement income accounts' under Code Section 403(b)(9) would be allowed to invest in collective trusts offered by banks and trust companies under a bill passed by the House July 19. The 'Church Plan Investment Clarification Act' (HR 33) would broaden and clarify a necessary exemption from the Securities Act of 1933." (Mercer LLC)
The Legislative History of Church Pension Plans
"The 1974 private pension reform law, ERISA, provided a permanent exemption from the law for pension, health and other benefit plans sponsored and maintained by a church for its employees. This permanent exemption did not apply to plans for employees of church schools, hospitals and other church-related entities." (Pension Rights Center)
Coming IRS Church Plan Rules May Enhance Participant Protections
"IRS guidance may require applicants for rulings confirming church-plan status to notify participants about the effect on benefits, according to an IRS official. In a letter responding to key senators' concerns about protections for church plan participants, the official also noted that the IRS won't issue favorable rulings to plan sponsors purporting to convert ERISA-covered plans to church plans (after a church acquires the sponsoring employer, for example)." (Mercer LLC)
[Guidance Overview] Illinois Civil Union Law Affect on 'Church' Plans
"[An alert on the Association for Corporate Counsel Web site says] that because civil union partners will have the same rights as spouses under state law, many religious organizations' benefit plans could be affected. Determining whether coverage of civil union partners is required hinges upon the type of benefit plan, whether the benefit is insured, and whether the plan is subject to [ERISA]." (PLANSPONSOR.COM)
Catholic Archdiocese of Boston Is Faulted on Handling of Pensions
"[A Former archdiocesan chancellor] disclosed yesterday that he has asked Attorney General Martha Coakley and Secretary of State William F. Galvin to appoint an independent trustee to oversee the funds in order to protect lay workers from being financially harmed by the archdiocese's handling of the transition from a traditional pension plan to retirement accounts funded largely by employee contributions." (The Boston Globe)
[Opinion] Senate Committee Chairmen Express Concern to IRS Over Upcoming Rules Defining 'Church Plan' (PDF)
February 14, 2011. 'We write to encourage the Service to ensure that [upcoming guidance for defining a 'church plan,' which will affect the availability of PBGC-guaranteed benefits] protects workers and retirees who may be adversely affected if a plan is re-designated as a church plan and, as such, is stripped of the protections afforded by ERISA." (Sen. Tom Hark, Sen. Herb Kohl, Sen. Max Baucus, Sen. Jeff Bingaman)
[Guidance Overview] Federal Court Rules in Precedent-Setting ERISA Class Action Complaint
"The issue before the Court was the proper scope of the 'church plan' exception to [ERISA]." (Faegre & Benson LLP)
[Guidance Overview] 2010 Year-End Compliance Reminders for Defined Contribution Plans Not Subject to ERISA (PDF)
2 pages. Excerpt: "This information applies to defined contribution plans, such as qualified governmental plans (including 'grandfathered'401(k) plans), qualified church plans that do not elect to be covered by ERISA ('non-electing church plans'), 403(b) programs, and section 457 plans that are not subject to Title I of ERISA." (Prudential Retirement)
[Guidance Overview] IRS announces 2011 limits on contributions and benefits
The limits were not increased for 2011 over the 2010 limits. Chart shows limits from 1996 through 2011. (Calhoun Law Group, P.C.)
IRS Working to Bring 'Church' Pension Plans under ERISA
Excerpt: "When ERISA was enacted in 1974, religiously affiliated employers were exempted from the regulation, according to the Wall Street Journal. Recently, employers with only a tenuous association to religion have begun to convert their pension plans to 'church plans,' which generally cover the clergy and lay employees of churches and synagogues." (Online Legal Media)
IRS Suspends Rulings on Church Plan Status for Pension Plans; PBGC Coverage at Issue
Excerpt: "The Internal Revenue Service is drafting guidance that could require employers with religious affiliations to warn workers when their pensions have lost their federal safety net." (The Wall Street Journal)
Church Workers' Pensions Lack Safeguards
Excerpt: "Thousands of . . . church-affiliated workers and retirees are at risk of losing funds they're counting on to see them through retirement because of a little-known loophole in federal pension protections. . . . That's because as a church pension plan, it isn't covered by the Pension Benefit Guaranty Corp., the government insurance plan for pensions." (All Things Considered via National Public Radio)
ERISA Class Action Suit Filed Against Publishing House of Evangelical Lutheran Church in America
Excerpt: " 'Plaintiffs allege that the Plan is not a 'church plan' exempted from ERISA and therefore the participants in the Plan should have the same protections ERISA extends to plan participants generally,' . . . ." (PLANSPONSOR.com)
[Guidance Overview] Chart of 415, Etc., Limits Updated for News Release IR-2009-94
The chart of maximum limits subject to inflation indexing at Carol V. Calhoun's employee benefits site has now been amended to include the newly announced 2010 limits. Among other things, the chart shows limits under sections 415, 403(b), 401(k), and 457, as well as the Social Security wage base and Social Security and Medicare tax rates, for 1996-2010. (Calhoun Law Group, P.C.)
Important New Online Official Survey Asks How the New Retirement Plan IRS Determination Letter Process is Working, How It Might Be Improved
An IRS advisory council is studying the retirement plan document determination letter process. A new online survey form asks for the views of employers, benefits attorneys, third-party administrators, consultants, providers of master & prototype documents, and other stakeholders. In 2005 the IRS radically changed the determination letter process by creating 5-year and 6-year cycles for amending and filing individually designed, volume submitter, and M&P retirement plan documents. Further changes were made in 2007. The advisory council wants to know how the process is working and how it might be improved, including the process for making required amendments or restatements. To learn more or take the survey now, click on the following address or copy and paste it into your web browser: http://www.surveymonkey.com/s.aspx?sm=EL2r2msS3KJI07X_2fq67w6w_3d_3d (IRS Advisory Committee on Tax Exempt and Government Entities (TE/GE))
[Guidance Overview] 2009 Complicance Checklist for Governmental and Nonelecting Church Plans, Non-Erisa 403(b) Programs, 457 Plans, and Other Nonqualified Executive Benefit Plans Not Subject to ERISA (PDF)
14 pages. Excerpt: "The Checklist incorporates requirements for Governmental and Nonelecting Church Plans, Non-ERISA 403(b) Programs, 457 Plans, and Nonqualified Executive Benefit Plans, and provides information on the materials that you will need to file, filing due dates, and agencies to which the filings should be made." (Prudential)
Catholic Lay Employees' Retirement Benefits Reduced
Excerpt: "J. Timothy Kocab, administrative secretary of the Lay Employees' Retirement Board, has detailed plan benefit reductions 'in order for us to refocus our resources on strengthening the funding position.' The Rhode Island Catholic reports that starting July 1 additional retirement benefits earned in the future will be calculated based on a new reduced formula that will lower annual accrued benefits. In addition, the number of years required for an employee to be vested in the plan will increase from five to 10." (PLANSPONSOR.com; free registration required)
[Guidance Overview] PPA Technical Corrections to Defined Benefit Governmental Plans and Non-Electing Church Plans (PDF)
2 pages. Excerpt: "On December 23, 2008, President Bush signed into law the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), which contains technical corrections to the Pension Protection Act of 2006 (PPA). Some of the provisions of WRERA affect defined benefit governmental plans and plans sponsored by churches that do not elect to be covered by ERISA ('non-electing church plans')." (Prudential Retirement)
[Guidance Overview] 2008 Year-End Compliance Reminders - for Defined Contribution Plans Not Subject to ERISA (PDF)
2 pages. Excerpt: "This information applies to defined contribution plans, such as qualified governmental plans (including 'grandfathered' 401(k) plans), qualified church plans that do not elect to be covered by ERISA ('non-electing church plans'), 403(b) programs, and section 457 plans that are not subject to Title I of ERISA. Every year, defined contribution plan sponsors should make sure their plans meet certain compliance requirements, including those listed . . . . This publication identifies the materials you need to review and will help you prepare for year-end." (Prudential Retirement)
[Guidance Overview] Chart of 415, Etc., Limits Updated for News Release IR-2008-118
The chart of maximum limits subject to inflation indexing at Carol V. Calhoun's employee benefits site has now been amended to include the newly announced 2009 limits. Among other things, the chart shows limits under sections 415, 403(b), 401(k), and 457, as well as the Social Security wage base and Social Security and Medicare tax rates, for 1996-2009. (Calhoun Law Group, P.C.)
Roman Catholic Archdiocese of Boston Considers Overhaul of Clergy Benefits
Excerpt: "The Roman Catholic Archdiocese of Boston, short tens of millions of dollars in its funds for assisting ailing and retired priests, is proposing to bring in a group of lay financial specialists to help overhaul its troubled clergy benefits plans." (The Boston Globe)
[Guidance Overview] Final 403(b) Regulation Date Tricky for Church Plans
Excerpt: "As the general deadline of January 1, 2009 creeps closer and closer for most 403(b) plans to comply with the Final 403(b) Regulations, the applicability dates in the Final 403(b) Regulations deserves a little scrutiny. For church 403(b) plans, the deadline for complying with the Final 403(b) Regulations depends on whether the authority to amend or establish the plan is with the church convention. The reason for this is contained within the 'Applicability Date' section of the Final 403(b) Regs . . . ." (Pension Protection Act Blog)
[Guidance Overview] COBRA Election Notice Not Required for Employee Covered Under Exempt Church Plan
Excerpt: "The employer in this case was correct in assuming that its plan was exempt from COBRA as a church plan, but determining whether a plan is a church plan isn't always easy. . . . Whether a plan is a church plan may depend on a detailed analysis of the organization's activities and the closeness of the religious affiliation." (Employee Benefits Institute of America)
The Standard to Provide 403(b) Program for Large Church Organization
Excerpt: "Cooperative Baptist Fellowship, working in partnership with the Church Benefits Board (CBB) and Retirement Wealth Management LLC, announced it has selected The Standard to be the provider of its $20 million 403(b) plan." (PLANSPONSOR.com; free registration required)
[Opinion] The ERISA Church Plan Exception: Why the Lown Test is Improperly Narrow
Excerpt: "Part I of this Comment generally discusses the ERISA church plan exception, and how it has been interpreted by the Department of Labor. Part II discusses the judicial interpretation of the exception, and demonstrates how courts are not giving full effect to the statutory language." (Alliance Defense Fund)
'Faith Care' Helps Families Beat High Premiums - Christian Plans Aren't Insurance
Excerpt: "[Christian Care Medi-Share is] a charitable ministry that collects monthly contributions and disburses them among members to pay medical bills." (The News and Observer)
Escalating Health-Care Costs Hit Churches as Insurance for Pastors Draining the Coffers
Excerpt: "Declining church memberships, combined with aging clergy, rocketing health-care costs and dwindling donations, are creating conflicts for church leaders who are caught between caring for their ministers and managing budgets. At the same time, national researchers have found that mainline Protestant ministers tend to be more overweight, stressed and depressed -- all of which carry significant health risks -- than the general population." (The Washington Post; free registration required)
Members of Ministry Rich in Spirit, Poor in Funds for Retirement
Excerpt: "A SOCIOLOGIST'S STUDY cites low pay, little savings and church-owned homes as factors contributing to ministers' bleak financial outlooks." (The Christian Chronicle)
2007 Year-End Compliance Reminders for Defined Contribution Plans not Subject to ERISA (PDF)
3 pages. Excerpt: "This information applies to defined contribution plans, such as qualified governmental plans (including 'grandfathered' 401(k) plans), qualified church plans that do not elect to be covered by ERISA ('non-electing church plans'), 403(b) programs, and section 457 plans that are not subject to Title I of ERISA. Every year, defined contribution plan sponsors should make sure their plans meet certain compliance requirements, including those listed below. This publication identifies the materials you need to review and will help you prepare for year-end." (Prudential Retirement)
Case Sheds Light on Church Plan Exception
Excerpt: "Most benefits and insurance professionals familiar with COBRA administration clearly know that church plans are exempted from COBRA's requirements. What is less clear is when this exception actually applies. A recent district court case shed some light." (infinisource)
Updated Chart Shows COLA Increases in Penson Limits, Social Security Wage Base, for 2008
On October 18, the IRS issued News Release IR-2007-171, announcing the changes in pensions and benefits limits for 2008. That same day, the Social Security Administration announced the wage base (i.e., the maximum amount subject to social security taxes) for 2008. An updated chart, showing these limits for 1996 to 2008, is available at the above link. (Calhoun Law Group, P.C.)
Health Care Corporation's Plan Not Exempt from COBRA As Church Plan
Excerpt: "EBIA Comment: Health care systems and other organizations that have religious affiliations often maintain benefit plans for their employees that are assumed to be exempt from ERISA and COBRA. The final determination of whether this plan was a church plan, however, was left to a judge -- leading to a result that the employer may not have anticipated." (Employee Benefits Institute of America)
Please Take Survey by IRS Advisory Group: Improving the Employee Plans Compliance Resolution System
Are an attorney, accountant, actuary, consultant, third-party administrator, financial services provider, or other kind of retirement plan practitioner? Please help an official IRS advisory group supply the IRS with ideas for improving the Employee Plans Compliance Resolution System, by completing this online survey or emailing your response to the group. The deadline is the end of next week (October 19). These recommendations will address, but not be limited to, the directive to the Secretary of the Treasury under the Pension Protection Act of 2006 to continue updating and improving EPCRS. (IRS Advisory Committee (ACT) on Tax Exempt and Government Entities)
|
Important word about authorship:
BenefitsLink® (BenefitsLink.com) provides this page for you, containing selected hypertext links to pages on the web that our editors think will be useful or interesting to you. But BenefitsLink is not the author or publisher of those linked pages (except as expressly indicated). You should contact directly the author of any such linked pages for copyright or other information about their contents.
|
Webmaster: Dave Baker (click) · © 2012 BenefitsLink.com, Inc.
(contact the webmaster for reprint permission) ·
Linking: Feel free to link directly to this page, even without specifically crediting BenefitsLink ® as its source. Glad you're here! ·
Privacy Policy
|
|
