Seth Safra
Seth J. Safra is a partner in Proskauer’s Employee Benefits & Executive Compensation Group. Described by clients as “extremely knowledgeable, practical, and strategic,” Seth advises clients on compensation and benefit programs.
Seth’s experience covers a broad range of retirement plan designs, from traditional defined benefit to cash balance and floor-offset arrangements, ESOPs and 401(k) plans—often coordinating qualified and non-qualified arrangements. Seth also advises on ERISA compliance for investments, including the U.S. Department of Labor’s new conflict of interest (fiduciary) rules.
On the health and welfare side, Seth helps employers provide benefits that are cost-effective and competitive. He advises on health plans with HSAs and HRAs and also on severance and fringe benefit arrangements.
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Last week, the U.S. House of Representatives passed the Setting Every Community Up for Retirement Enhancements (SECURE) Act of 2019. To become law, the bill still needs to be passed by the Senate and signed by the President. Because there appears to be bipartisan support, there is a chance that some form of the SECURE … Continue Reading
As discussed here, the IRS’s initial interpretation of a new excise tax under Section 4960 of the Internal Revenue Code could catch for-profit employers who set up foundations, trusts, PACs, and other tax-exempt entities off guard. The tax is 21% of certain compensation paid to the top five highest paid employees of the tax-exempt entity. … Continue Reading
One de-risking tool for employers with defined benefit pension liabilities is to allow participants to receive lump-sum distributions. Although lump sums result in a short-term cash drain, they reduce the plan’s long-term liability—reducing the sponsor’s exposure to contribution volatility. Over the last several years, there has been a question whether lump-sum cashouts may be offered … Continue Reading
The U.S. Court of Appeals for the Eighth Circuit recently weighed in on a practice for recovering health plan overpayments known as “cross-plan offsetting.” In addition to shining a light on the controversial (but potentially useful) practice, the decision offers an important lesson in plan drafting that extends beyond the particular case. The case is … Continue Reading
After nearly a decade in the making, the Department of Labor’s fiduciary rule appears to be officially dead. On June 21st, the U.S. Court of Appeals for the Fifth Circuit issued its mandate that finalized its earlier decision vacating the rule—discussed here. Along with the regulation that expanded the definition of investment fiduciary, the mandate … Continue Reading
On May 7, 2018, the DOL issued a Field Assistance Bulletin (“FAB”) addressing the Department’s enforcement policy on the fiduciary rule that was recently vacated by the Fifth Circuit. Although the DOL has elected not to continue defending the rule before the Fifth Circuit, the FAB leaves the rule’s status in a holding pattern. Rather … Continue Reading
On March 23, 2018, the National Association for Fixed Annuities (“NAFA”) and the Department of Labor filed a Joint Stipulation of Dismissal of litigation involving the Department’s fiduciary rule in the District of Columbia Circuit. NAFA had appealed a district court decision that dismissed NAFA’s challenge to the fiduciary rule. The decision to drop that … Continue Reading
In a 2-1 decision, the U.S. Court of Appeals for the Fifth Circuit vacated the Department of Labor’s fiduciary rule, including the expanded definition of “investment advice fiduciary” and the associated exemptions. The decision nullifies the Department’s 2016 regulation—at least in the Fifth Circuit, which includes Texas, Louisiana, and Mississippi, and arguably nationwide—but is not … Continue Reading
The Tenth Circuit recently affirmed the Department of Labor’s authority to impose new conditions for exemption from prohibited transaction rules with respect to the sale of annuity contracts. The case related to the Department’s decision, as part of the 2016 “fiduciary rule,” to make sales of fixed indexed annuities ineligible for Prohibited Transaction Exemption 84-24, … Continue Reading
In an opinion released yesterday, the Supreme Court reaffirmed that collective bargaining agreements (CBAs) must be interpreted according to “ordinary principles of contract law.” CNH Industrial N.V. v. Reese, No. 17-515, 2018 WL 942419 (U.S. Feb. 20, 2018). In so ruling, the Court again rejected the Sixth Circuit’s inference from silence that CBAs vested retiree … Continue Reading
On January 2, 2018, the IRS published its annual bulletin that updates procedures for requesting rulings, determinations, and other guidance from the IRS. As in past years, the bulletin includes new user fees for determination requests and submissions under the Voluntary Correction Program (“VCP”). But this year’s update includes a significant surprise for the VCP … Continue Reading
On November 27, 2017, the Department of Labor (“DOL”) finalized the delay of the applicability date for certain conditions for exemptions to the fiduciary rule until July 1, 2019. This delay was initially proposed in late August as described here. Although certain requirements have been delayed, the fiduciary rule’s broad definition of “fiduciary” and the … Continue Reading
On August 30, 2017, the Department of Labor (“DOL”) officially proposed delaying the applicability date of exemptions to its fiduciary rule until July 1, 2019. The proposal was expected after DOL stated in a court filing earlier this month that a delay proposal was under review by the Office of Management and Budget. This proposal … Continue Reading
The U.S. District Court for the District of Columbia has ordered the EEOC to reconsider its final regulations on the extent to which an employer may offer incentives to participate in a wellness program without violating the Americans with Disabilities Act (ADA) or the Genetic Information Nondiscrimination Act (GINA). The court, however, declined to vacate … Continue Reading
On August 9, 2017, the Department of Labor (“DOL”) stated in a court filing that the Office of Management and Budget (“OMB”) is reviewing a proposal to extend the applicability date for certain requirements under DOL’s fiduciary rule until July 1, 2019. As discussed here and here the fiduciary rule’s “impartial conduct standards” have been … Continue Reading
On June 29, 2017, the Department of Labor (“DOL”) requested another round of public comment on its fiduciary rule—this time in the form of a Request (“RFI”) for Information. The RFI seeks input on (a) whether to extend the January 1, 2018, applicability date for parts of the rule that are not yet in effect, and … Continue Reading
The Department of Labor has announced that the new fiduciary conflict of interest rule and related exemptions will begin taking effect on June 9, 2017, ending speculation of further delay. At the same time, the Department announced a relaxed enforcement standard for the rest of 2017. See our blog post on the delayed effective date … Continue Reading
If your 401(k) plan recordkeeper has not talked to your company lately about hardship distributions, it may be time to reach out to the recordkeeper. The short story is that the IRS recently issued an internal memorandum (found here https://www.irs.gov/pub/foia/ig/spder/tege-04-0217-0008.pdf) providing guidance to its employee plans examination group on the substantiation requirements for hardship distributions … Continue Reading
A lot has been written over the last few months about what to do now that the IRS has closed its determination letter program for ongoing individually designed tax-qualified retirement plans. Some see this as cause for celebration because we no longer have to go through the trouble of collecting documents, filling out forms, and … Continue Reading
On April 4, 2017, the U.S. Department of Labor issued a final rule postponing applicability of the conflict of interest rule and related exemptions for sixty days, until June 9, 2017. The stated purpose of the extension is to allow more time to: (i) complete the examination required by President Trump’s February 3, 2017 memorandum, … Continue Reading
On March 1, 2017, the U.S. Department of Labor proposed a 60-day delay of the conflict of interest rule and related exemptions (currently set to be applicable on April 10, 2017). The Department opened two comment periods related to the rule: A 15-day comment period (ending March 17, 2017) on whether enforcement of the rule … Continue Reading
The U.S. District Court for the District of Columbia (Judge Bates) has denied AARP’s request to block the implementation of the EEOC’s final wellness regulations pending a decision on the merits. As we have discussed previously, the regulations address the extent to which an employer may offer incentives to participate in a wellness program without violating … Continue Reading
As we have previously discussed in detail in several blogs (New EEOC Regulations Provide Roadmap for Wellness Programs; EEOC Issues Final Rules On Employer-Sponsored Wellness Program Compliance Under the ADA and GINA; and District Court Decision Upholds Employer’s Wellness Program But Signals Support for EEOC Positions Going Forward), the EEOC issued final rules in May 2016 on the … Continue Reading
In EEOC v. Orion Energy Systems, Inc., the Eastern District of Wisconsin rejected the EEOC’s claims that Orion Energy’s wellness program violated the Americans with Disabilities Act (“ADA”). Although the court upheld the employer’s past practice, the court signaled that the EEOC’s recent regulations on wellness plans (discussed here and here), which limit the incentive … Continue Reading
SECURE Act: Key Changes for Plan Sponsors and Employers
By Paul M. Hamburger, Seth Safra and Jennifer Rigterink on Posted in 401(k) Plans
New Excise Tax For Tax-Exempts Can Ensnare For-Profit Employers: Comment Deadline Fast Approaching
By Seth Safra, Steven Weinstein and Damian A. Myers on Posted in Executive Compensation
IRS Reopens Opportunity to Cash Out Retirees in Pay Status—At Least For Now
By Seth Safra and Malerie Bulot on Posted in Uncategorized
Eighth Circuit Decision On“Cross-Plan Offsetting” Illustrates Importance Of Careful Plan Drafting
By Seth Safra and Caroline Cima on Posted in Affordable Care Act
As DOL Fiduciary Rule is Officially Vacated, Focus Shifts to SEC
By Seth Safra and Russell Hirschhorn on Posted in Department of Labor
New DOL FAB Further Delays Enforcement of Fiduciary Rule, But Does Not Undo The Rule In Its Entirety
By Seth Safra, Russell Hirschhorn and Steven A. Sutro on Posted in Department of Labor, Fiduciary
Confusion Ensues After Appeal Over Fiduciary Rule in D.C. Circuit Dropped
By Seth Safra, Russell Hirschhorn and Steven A. Sutro on Posted in Department of Labor, Fiduciary
Fifth Circuit Vacates DOL Fiduciary Rule
By Seth Safra, Russell Hirschhorn and Steven A. Sutro on Posted in Department of Labor, Fiduciary
Tenth Circuit Upholds DOL’s Authority to Impose New Conditions for PTEs and Leaves Door Open for Changes to Fiduciary Rule
By Seth Safra, Russell Hirschhorn and Steven A. Sutro on Posted in Department of Labor, Fiduciary
Tackett Redux: Ordinary Principles of Contract Interpretation Mean No Inference of Vesting
By Seth Safra, Russell Hirschhorn and Benjamin Flaxenburg on Posted in Retiree Health Care Benefits
Annual IRS Revenue Procedure Includes Surprising Change to User Fees
By Seth Safra and Randall Bunnell on Posted in Voluntary Correction Program
Department of Labor Finalizes 18-Month Delay of Fiduciary Rule Exemptions
By Russell Hirschhorn, Ruthanne Minoru and Seth Safra on Posted in Fiduciary
Department of Labor Officially Proposes Delaying Fiduciary Rule’s Exemptions for 18 Months
By James Huffman, Russell Hirschhorn and Seth Safra on Posted in Fiduciary
Court Throws Monkey Wrench Into Wellness Programs
By Laura Fant and Seth Safra on Posted in Wellness Programs
Department of Labor Requests Additional 18-Month Delay of Certain Fiduciary Rule Requirements
By James Huffman, Russell Hirschhorn and Seth Safra on Posted in Department of Labor, Fiduciary
DOL Again Seeks Comments on New Fiduciary Rules and Exemptions
By Benjamin Saper, Russell Hirschhorn and Seth Safra on Posted in Fiduciary
Department of Labor’s New Fiduciary Rule Will Go Into Effect June 9th
By Benjamin Saper, Russell Hirschhorn and Seth Safra on Posted in Fiduciary
The Time is Right to Contact Recordkeepers About Hardship Substantiation
By Robert Projansky and Seth Safra on Posted in IRS
Protecting Your Qualified Retirement Plan Now that the IRS Determination Program is (Mostly) Closed
By Cristopher Jones, Paul M. Hamburger, Robert Projansky, Seth Safra and Steven Weinstein on Posted in IRS
DOL Fiduciary Rule Delayed, But At Least Parts Might Be Here to Stay
By Russell Hirschhorn and Seth Safra on Posted in Fiduciary
U.S. DOL Proposes Delay of Conflict of Interest Rule and Related Exemptions
By Benjamin Saper, Russell Hirschhorn and Seth Safra on Posted in Department of Labor, Fiduciary
UPDATE: District Court Denies Preliminary Injunction in AARP Suit to Block Final Rules on Employee Wellness Programs
AARP Files Suit to Block the EEOC’s Final Rules on Employee Wellness Programs
By Laura Fant and Seth Safra on Posted in Wellness Programs
District Court Decision Upholds Employer’s Wellness Program But Signals Support for EEOC Positions Going Forward
By Seth Safra and Sunghee Sohn on Posted in Wellness Programs
