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October 28, 2026Health & Welfare

The Daily Brief for Benefits Professionals

BenefitsWire

Health & Welfare Plans

October 28, 2026

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8 items · ~2 min read

In this issue

Regulatory Action and Guidance (2)  ·  Litigation (4)  ·  General Benefits (2)

Regulatory Action and Guidance

2 items
Developing IRS clarifies taxation of state and DC PFML contributions, benefits

“The revenue ruling affects 14 states (and Washington, DC) that have PFML mandates for private employers: California, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island and Washington. California, Hawaii, New Jersey, New York and Rhode Island started with a wage-replacement program for nonwork-related disabilities only. All but Hawaii later added a wage-replacement program for family leave, which typically includes leave for child bonding, caring for a family member with a serious health condition and handling military exigencies.” MORE >>

Source: Mercer

New Proposed IRS Regulations Expand Benefits Available to Highly Compensated Employees Under Dependent Care Assistance Plans

“This summer, employers received a nice surprise when the Internal Revenue Service (“IRS”) issued proposed regulations for dependent care assistance plans (“DCAPs”), which clarified an issue that had bedeviled employers since 1981, when Congress added section 129 to the Internal Revenue Code to provide tax-favored treatment for DCAPs.” MORE >>

Source: Blank Rome LLP

Litigation

4 items
Developing Fifth Circuit Holds Company Owner Personally Liable for Diverting Health Plan Contributions

“In Sonderling v. Sills, the court affirmed a $209,466.34 judgment and a permanent fiduciary-service ban against the sole owner of a Louisiana company after he withheld employee premium contributions from insurers and left self-funded medical claims unpaid. The decision illustrates how closely the Department of Labor (“DOL”) and courts scrutinize who actually controls plan assets and claims-payment decisions, and not merely who is named in plan documents.” MORE >>

Source: HUB International

Aon Faces ERISA Suit Alleging Self-Dealing in Voluntary Benefits Program

“Plaintiffs claim the firm received more than $14 million in commissions and fees tied to benefits offered to its employees.” MORE >>

Source: Ogletree Deakins

Buried Alive? ERISA Claims Exhaustion Isn’t Necessarily Dead After Bolton

“The en banc Eleventh Circuit in Bolton v. Inland Fresh Seafood Corporation of America, Inc. overruled Mason v. Continental Group, Inc. “to the extent [Mason and its progeny] hold that ERISA itself requires exhaustion of statutory claims (including those alleging a breach of fiduciary duty).” The term “exhaustion” simply means that, before suing, a participant must first pursue the claim through the plan’s own internal claims and appeals process and give plan fiduciaries a chance to resolve it.” MORE >>

Source: Thompson Hine

Employer-Sponsored Health Plans: Navigating Mounting Legal Risk for Plan Sponsors

“In recent years, plaintiffs’ firms have increasingly turned their attention to employer-sponsored health plans, bringing new ERISA class action lawsuits challenging the management and administration of health benefits.” MORE >>

Source: Groom Law Group

General Benefits

2 items
Why employers are reconsidering their pharmacy benefit managers

“As prescription drug costs continue to climb, employers are demanding greater accountability from their pharmacy benefit managers, putting the market in flux.” MORE >>

Source: Employee Benefits Network

US Adults Appear Underprepared for Longer Lives

“Americans scored low on the care, home and health measures of the Longevity Preparedness Index by John Hancock and MIT AgeLab.” MORE >>

Source: PLANSPONSOR

Also of Note

BenefitsWire · A digest for ERISA attorneys, third-party administrators, actuaries, recordkeepers, and benefits consultants.
An informational digest, not legal advice.
BDK2, LLC, 2503D N Harrison St PMB 2091, Arlington, VA 22207-1640

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