EBIA Weekly Newsletter

Another Trial Court Rejects Challenge to DOL Fiduciary Rule

   February 16, 2017

Chamber of Commerce v. Hugler, 2017 WL 514424 (N.D. Tex. 2017) Available at https://www.gpo.gov/fdsys/pkg/USCOURTS-txnd-3_16-cv-01476/pdf/USCOURTS-txnd-3_16-cv-01476-0.pdf Three trade associations, including two representing the insurance industry, brought this lawsuit challenging the DOL’s final fiduciary rule and two related prohibited transaction exemptions (PTEs). The final fiduciary rule replaces a rule that includes a restrictive five-part test for … Read More

Can Employees Taking Unpaid FMLA Leave Pay Their Share of Group Health Plan Premiums on a Pre-Tax Basis Under Our Cafeteria Plan When They Return From Leave?

   February 16, 2017

QUESTION: One of our employees is going on unpaid FMLA leave. She is a participant in our premium-only cafeteria plan and wants to keep her coverage under our major medical plan during the leave. However, she would like to pay her share of the premiums for her coverage on a pre-tax basis under the cafeteria … Read More

IRS Memo Addresses Taxation of Fixed Indemnity and Certain Wellness Payments

   February 9, 2017

IRS Chief Counsel Advice 201703013 (Dec. 12, 2016) Available at https://www.irs.gov/pub/irs-wd/201703013.pdf In this Chief Counsel Advice (CCA) memorandum, the IRS concludes that payments under fixed-indemnity health plans (and analogous payments under certain wellness programs) are taxable unless the premiums for coverage are paid on an after-tax basis. The CCA defines a “fixed indemnity … Read More