Disability Amendment Sign Up Form

See below for a brief explanation of the new rule.

Your Name *
Your Name
Phone
Phone
Area code first
Amendment Options *
Choose one
Enter any additional comments, and list specific plans if individual addenda are needed.
Authorization
I authorize Sherman and Patterson, Ltd. to prepare the plan documents as selected above.

What is this about?

The Department of Labor has issued new requirements for disability claims and review procedures that take effect April 1, 2018. All ERISA plans (e.g., SERPs, other 457(b) and (f) plans, LTD plans, and split dollar plans) that provide benefits on disability require updates to reflect the new requirements. Failing to update exposes the employer to loss of procedural protections otherwise available under ERISA.

New Requirements

The new requirements are intended to facilitate prompt and impartial decisions on claims for disability benefits. Under the new requirements:

  • Administrator response periods are shortened
  • Those adjudicating the claims must be impartial and independent
  • The administrator must describe the basis for not following expert or professional evaluations
  • Notices must be written in a culturally and linguistically appropriate manner

Failure to establish (or follow) compliant procedures allows the claimant to go directly to litigation rather than having first to complete the claims and review procedures in the plan. More importantly, in the litigation the employer loses the advantage of the presumption that the employer’s determination in a compliant claims and review process was correct.

Next Steps

Please let us know if you have questions about the new requirements and how they will affect your welfare and nonqualified pension plans under ERISA.