Don’t Miss Our Next Informative Webinar - Designed to Win: Executive Compensation Plans that Create Performance, Loyalty, and Growth
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Charleen Barnwell – Senior ERISA Compliance Counsel
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Prior to joining Hall Benefits Law, Charleen Barnwell worked as an employee benefits attorney and compliance consultant with a number of well-known corporations, including InterContinental Hotels Group and NCR Corporation, Inc. Her 15-plus years in the benefits legal space have equipped her well to address issues of fiduciary noncompliance, and her experiences in the corporate benefits space give her unique insight into the needs of our corporate plan sponsors.
Charleen serves on the Board of Directors for the Southeast Benefits Education Network and is a Lean-In mentor. Outside of the office, Charleen enjoys spending time with her twin boys and loves fitness. Cycling and playing basketball are two of her favorite outdoor activities.
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EDUCATION
Juris Doctor, Michigan State University, College of Law, conferred 2001
Masters of Public Administration with Honors, Georgia Southern University, 1997
Bachelor of Arts, Cum Laude, South Carolina State University
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What Benefits Does ERISA Cover?
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The Employee Retirement Income Security Act of 1974 (
ERISA
) is a federal law enacted to protect employees who participate in certain pension and health plans. In the years since its inception, administration of ERISA has resulted in the creation of voluminous regulations. In addition, the scope of the original law has expanded due to amendments like:
The sheer extent of ERISA rules and regulations can be overwhelming.
And failure to comply with ERISA may lead to
large penalties
. Depending on the type of infraction, employers may be penalized for each day of noncompliance or pay a fine per each employee.
It’s important, then, to understand which benefits and plans are covered by ERISA regulations and which are not.
Retirement and Pension Plans
ERISA covers
retirement plans
provided by most employers in the private sector. Employers are not
required
to establish this type of plan for their employees. Once established, however, a retirement plan generally must comply with ERISA standards.
ERISA sets minimum standards for voluntary
retirement and pension plans
but does not dictate how much participants will be paid. One thing ERISA
does
is compel plan sponsors to inform participants of important details about the plan, including:
- When a worker becomes eligible to participate in the plan,
- How a participant accumulates benefits and becomes fully vested,
- That plan sponsors must adequately fund their plans,
- That fiduciaries are accountable for their actions,
- How participants may sue plan fiduciaries under certain conditions, and
- That some qualified claims for benefits may be paid by the Pension Benefit Guaranty Corporation if a defined plan is terminated.
- Defined Benefit Plans. The employer funds a plan that offers retired employees a specific monthly payment.
- Defined Contribution Plans. Employees and employers contribute to this type of plan. However, specific benefit amounts are not promised.
A defined contribution plans may offer the following options to their participants:
- 401(k) plans,
- Simple IRA,
- Simplified Employee Retirement Plans (SEPs),
- Employee stock ownership plans (ESOP).
- Profit sharing or stock bonus plans.
Companies that offer any of the above plans, or plan to create benefit plans for employees in the future, must be certain those plans meet ERISA standards.
Although ERISA originally applied only to retirement and pension plans, other benefit plans are now covered due to amendments and changes in the law.
Health and Welfare Benefit Plans
Employee
welfare benefit plans
provide fringe benefits unrelated to retirement. Often these plans provide healthcare benefits, but also may include:
- Paid time off like vacation, holiday, and sick days;
- Apprenticeships, paid training, scholarships, or tuition reimbursement;
- Daycare centers or assistance with daycare costs; and
- Prepaid legal services.
ERISA standards may also apply to employer-sponsored insurance plans, including:
- Long-term and short-term disability insurance,
- Life insurance, and
- Health insurance.
Employer-sponsored benefit plans vary greatly, so these lists are by no means comprehensive. Also, and more importantly, ERISA does not
require
employers to provide a minimum level of benefits. Employers are free to offer plans that suit their budgets as long as those plans comply with ERISA law.
Does Your Company Offer Benefit Plans to Its Employees?
As fiduciaries, plan sponsors and administrators have the difficult job of determining whether their benefit plans must comply with ERISA standards. Talking to an attorney with ERISA experience is crucial.
The attorneys at the Hall Benefits Law work extensively with ERISA-related cases, both before and after plans are established. Please call 678-439-6236 to discuss your concerns with an experienced ERISA attorney. Our
website
contains more information about our firm, a
Contact Form
, and free resources for your review. From our home office in Georgia, we assist clients throughout the United States, from Massachusetts to Michigan to California.
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UPCOMING EVENTS AT OUR ERISA LEARNING CENTER!
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Thursday, July 26
Attorney Power Lunch
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UPCOMING SPEAKING ENGAGEMENTS
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Wednesday, July 25
Winning the Talent War: Hospital and Non-Profit Entity Executive Compensation Plans that Stand Out from the Crowd
Albany, GA
Friday, July 27
Benefits Legal Compliance Update
Atlanta, GA
Wednesday, August 8
NAAAHR Comp and Benefits Affinity Group
Atlanta, GA
Wednesday, August 15
WEBINAR – Designed to Win: Executive Compensation Plans that Create Performance, Loyalty, and Growth
Monday, August 20
Housing Benefit Plan
Charlotte, NC
Thursday, September 20
HR Summit – Lanier Charter Career Academy
Gainesville, GA
Wednesday, October 10
WEBINAR – Benefits Legal Compliance Update
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