Benefits Forward

In conjunction with the release of its final regulations, the IRS also released a FAQs on employer shared responsibility. Document Excerpt On Feb. 10, 2014, the IRS and Treasury issued final regulations on the Employer Shared Responsibility provisions under section 4980H of the Internal Revenue Code. The following questions and answers provide helpful information about [...]

The IRS has released final employer shared responsibility regulations under the Affordable Care Act. Document Excerpt This document contains final regulations providing guidance to employers that are subject to the shared responsibility provisions regarding employee health coverage under section 4980H of the Internal Revenue Code (Code), enacted by the Affordable Care Act. These regulations affect [...]

Notice 2014-13 provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest ratesas in effect for plan years beginning before 2008.  The Notice also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2). Document Excerpt [...]

IRS issues proposed regulations on how VEBAs and certain other employee benefit plans should calculate the Unrelated Business Taxable Income where applicable. Document Excerpt This document contains a new proposed regulation providing guidance on how certain organizations that provide employee benefits must calculate unrelated business taxable income (UBTI). This document also withdraws the notice of [...]

The IRS has revised its Publication 560, retirement plans for small businesses. Document Excerpt Link http://www.irs.gov/pub/irs-pdf/p560.pdf

The IRS provides a sample Roth article that employers and organizations can use to explain Roth features added to plans. Document Excerpt  Sample article for organizations and employers to use to reach customers (word count 346)   Customize and provide the following article in your communication vehicles for your audience. ______________________________________________________________________________________ Link http://www.irs.gov/pub/irs-utl/OC-RothAccountinYourRetirementPlan.pdf

Along with the issuance of final regulations the Departments also issued proposed regulations dealing with “orientation periods.” Document Excerpt These proposed regulations would clarify the maximum allowed length of any reasonable and bona fide employment-based orientation period, consistent with the 90-day waiting period limitation set forth in section 2708 of the Public Health Service Act, [...]

The Departments issue final rules governing the Affordable Care Act’s maximum 90 day wait rule. Document Excerpt These final regulations implement the 90-day waiting period limitation under section 2708 of the Public Health Service Act, as added by the Patient Protection and Affordable Care Act (Affordable Care Act), as amended, and incorporated into the Employee [...]

The various Departments jointly release additional FAQs regarding the implementation of the market reform provisions of the Affordable Care Act as well as the implementation of the Mental Health Parity Act. Document Excerpt Set out below are additional Frequently Asked Questions (FAQs) regarding implementation of the market reform provisions of the Affordable Care Act, as [...]

The agencies issue proposed regulations to the rules governing excepted benefits including what qualifies as excepted benefits. Document Excerpt This document contains proposed rules that would amend the regulations regarding excepted benefits under the Employee Retirement Income Security Act of 1974, the Internal Revenue Code, and the Public Health Service Act. Excepted benefits are generally [...]

CMS releases a Frequently Asked Question regarding the application of the minimum participation rates on delayed enrollment under State SHOPs. Document Excerpt No. The exception to guaranteed availability allowing issuers to restrict enrollment for small employers that fail to meet minimum participation requirements requires that enrollment be available to such employers from Nov. 15-Dec. 15 [...]

CMS issues a Frequently Asked Question and response on application of the minimum participation rates upon renewals occurring during the period November 15-December 15. Document Excerpt No. For operational and consumer consideration reasons, employers will not have to meet the FF-SHOP’s minimum participation rate for renewals occurring during Nov. 15-Dec. 15. Because under guaranteed availability [...]

PBGC releases March lump sum interest rates. Document Excerpt The immediate interest rate for valuing lump sum payments for the month of March 2014 is 1.50% and the deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. (The immediate interest rate for February 2014 was 1.75% for lump sum payments; the [...]

The proposed rule would reduce the number of actuarial valuations required for certain small terminated but not insolvent plans. Further, the proposed changes would shorten the advance notice filing requirements for mergers in certain situations. Document Excerpt PBGC is proposing to amend its multiemployer regulations to make the provision of information to PBGC and plan [...]

PBGC releases the interest rates applicable for lump sums in February, 2014. Document Excerpt The immediate interest rate for valuing lump sum payments for the month of February 2014 is 1.75% and the deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. (The immediate interest rate for January 2014 was 1.75% [...]

PBGC releases final regulations on the payment of premiums. Document Excerpt Thus, large calendar-year plans’ 2014 flat-rate premiums will be due October 15, 2014. This action implements part of a PBGC project to make its premium rules more effective and less burdensome by simplifying due dates, coordinating the due date for terminating plans with the [...]

The Budget Agreement signed into law December 26 includes an increase in PBGC premiums. Document Excerpt Link http://beta.congress.gov/113/bills/hjres59/BILLS-113hjres59enr.pdf

PBGC releases the interest rates for January payments. Document Excerpt The immediate interest rate for valuing lump sum payments for the month of January 2014 is 1.75% and the deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. (The immediate interest rate for December 2013 was 1.75% for lump sum payments; [...]

The President’s memorandum to the Treasury Secretary regarding the President’s new myRA savings accounts discussed in the State of the Union. Document Excerpt All Americans deserve the ability to save for retirement. Since taking office, my Administration has committed to strengthening retirement security for all Americans, including by helping workers find ways to save for [...]

The Actuarial Standards Board releases Standard of Practice 4 governing measuring of pension obligations and determining pension plan cost. Document ExcerptDisclosure of Rationale for Changes in Cost or Contribution Allocation Procedure Section 4.1(t) contains new disclosure requirements for a change in the cost or contribution allocation procedure. Assessment of Contribution Allocation Procedure or Funding Policy [...]

The Actuarial Standards Board releases Standards of Practice 27 regarding the selection of economic assumptions. Document Excerpt This version clarifies that economic assumptions can be based either on the actuary’s estimate of future experience or on the actuary’s observations of the estimates inherent in market data, depending upon the purpose of the measurement.  Link http://www.actuarialstandardsboard.org/pdf/asops/asop027_172.pdf

HHS proposes regulations designed to provide a testing process to be able to demonstrate compliance with electronic transaction requirements. Document Excerpt This proposed rule would require a controlling health plan (CHP) to submit information and documentation demonstrating that it is compliant with certain standards and operating rules adopted by the Secretary of Health and Human [...]

Technical Guidance 2013-0004, Q & A on Medical Loss Ratio and rebate calculations in the case of non-calendar year plans. Document Excerpt  For the 2013 MLR reporting year, issuers may defer including in their MLR and rebate calculations the portion of 2013 premiums collected for 2014 ACA assessments or fees on non-calendar year policies. Link [...]

FINRA provides guidance in the form of a Notice to covered financial institutions on making recommendations for rollovers to IRAs. Document Excerpt FINRA is issuing this Notice to remind firsm of their responsibilities when (1) recommending a rollover or transfer of assets in an employer-sponsored retirement plan to an Individual Retirement Account (IRA) or (2) [...]