Under new affordability initiatives enacted by the Governor and Legislature (SB 78 (Chapter 38, Statutes of 2019) and SB 106 (Chapter 55, Statutes of 2019), California will build on the success of the Patient Protection and Affordable Care Act and bring quality care within reach of more people.

California will be the first state in the nation to provide state subsidies to many middle-income consumers who had previously not qualified for financial help because they exceeded federal income requirements. In addition, hundreds of thousands of lower-income consumers will also receive additional financial help on top of the federal assistance they currently receive to help them obtain and keep their coverage. California also reversed the federal undercutting of the Affordable Care Act and restored the law that requires consumers get health insurance if the cost of coverage does not exceed a certain percentage of their income.

Who will qualify?
An estimated 235,000 middle-income Californians who previously did not qualify for financial help because they exceeded federal income requirements. They will be eligible to receive an average of $172 per household per month, which will help them save an average of 23 percent off their current premiums.

Now, a single person  earning up to $75,000/year and a family of four can make up to $150,000/year and still qualify for an additional tax credit.

What do I need to do?
All you need to do is shop your insurance coverage with Covered California to see if you will get a discount. After that, you can decide if that will work better for you or if you should continue doing what you have being doing in the past.

Questions? Contact us! Call or text: 714-900-2363

In a recent Forbes article found here, company executives have been found personally liable for mistakes made with 401K plan administration; violating their fiduciary duty to the employees whose retirement funds depend on those plans.

Based on current laws, it is the businesses responsibility to act as the fiduciary for the employee group retirement plan. Here are some of the common mistakes to avoid:

Common Mistakes:

• Negligence - Failing to monitor and review the plan on a regular basis.
• Self Dealing - Putting the company's interest or owners interests above that of the employees.  This happens when the company owners are invested in a specific fund and control the options available or when the (large) company is included as part of one of the investment fund options.
• Excessive Fees - Plan Administrators should compare plan fees to a benchmark on an Annual Basis.
• Inappropriate Investments - Offering inappropriate investment choices.

What to do:
Executives Retirement plan fiduciaries (Company Owners and Executives) need to review the investment options in their plans to remain diligent in maintaining the most appropriate choices. In Addition, they need to review the fees being charged.  This is best done working with experts and  documenting the professional review of the plan. A fiduciary liability insurance policy should be acquired and reviewed annually to ensure sufficient coverage.

• Get a Fiduciary Liability Insurance policy. 
• Make sure you use an experienced group retirement plan adviser, they may event be able to serve as an outsourced plan administrator.

Questions?  Contact Us at 800-846-5902



References:

www.forbes.com/sites/brianmenickella/2019/02/07/hr-executives-again-named-in-401k-lawsuit/#38a21f7e131c

https://www.americanbar.org/groups/real_property_trust_estate/publications/ereport/rpte-ereport-winter-2019/erisa--thou-shall-not-pay-excessive-fees-/

https://www.marketwatch.com/story/401k-lawsuits-are-surging-heres-what-it-means-for-you-2018-05-09