Today's Update

IRS Guidance

Final Regulations on Multiple Destinations

The final regulations remove the allocation rules on distributions from a Roth designated account to multiple destinations. Document Excerpt This document contains final regulations eliminating the requirement that each disbursement from a designated Roth account that is directly rolled over to an eligible retirement plan be treated as a separate distribution from any amount paid […]

Final Regulations on Additional Limitations On Suspension of Benefits

The IRS releases additional regulations on limitations on suspension of benefits under certain multiemployer plans. Document Excerpts SUMMARY: The Multiemployer Pension Reform Act of 2014 (“MPRA”), which was enacted by Congress as part of the Consolidated and Further Continuing Appropriations Act of 2015, relates to multiemployer defined benefit pension plans that are projected to have […]

Chief Counsel defines “otherwise excludable employees”

This Chief Counsel Memorandum defines who constitutes “otherwise excludable employees” for certain testing purposes. Document Excerpt You have asked whether certain positions related to the definition of “otherwise excludable employees,” used for purposes of coverage testing under § 410(b)(4)(B) and computing the actual deferral percentage (ADP) under § 401(k)(3), are supportable. Specifically, you have asked […]

Revised Procedures for Approval of Benefit Suspensions

The IRS has released Revenue Procedure 2016-27 setting forth revised procedures for approval of benefit suspensions under multiemployer plans. Document Excerpt This revenue procedure contains revised procedures for applications for a suspension of benefits under a multiemployer defined benefit pension plan that is in critical and declining status under § 432(e)(9). These procedures replace the […]

Parts of Proposed Nondiscrimination Regulations to be Withdrawn

After further consideration, the IRS has announced that the portion of its proposed nondiscrimination amendments will be withdrawn. The withdrawal will impact proposed changes that would have affected certain individual new comparability designs. Document Excerpt The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) announce that they will withdraw certain provisions […]

Correction of unsigned Pre-approved Document by Closing Agreement

The IRS has announced a new option that some providers may use where clients fail to timely sign required document. Rather than making a submission through VCP, the IRS has announced a procedure whereby some can obtain instead a Closing Agreement. Document Excerpt Previously, the only way an employer could correct not signing a pre-approved […]

DOL Guidance

Affordable Care Act FAQs Part 31

The DOL has posted the Affordable Care Act Frequently Asked Questions part 31. Document Excerpt Set out below are additional Frequently Asked Questions (FAQs) regarding implementation of the market reform provisions of the Affordable Care Act, the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA), and the Women’s […]

Summary of Benefits and Coverage

The DOL has updated its website to reflect updated Summary of Benefits and Coverage materials and templates for use on or after 4/01/17. Document Excerpt Link http://www.dol.gov/ebsa/healthreform/regulations/summaryofbenefits.html

Amendment to and Partial Revocation of PTE 84-24

In conjunction with the release of its final fiduciary conflict of interest regulations, the DOL is also releasing amendments to various prohibited transaction exemptions including to PTE 84-24. Document Excerpt Link https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-07928.pdf

Amendments to PTEs 75-1, 77-4, 80-83 and 83-1

In conjunction with the release of final fiduciary regulations, the DOL has also released amendments to various prohibited transaction exemptions. Document Excerpt SUMMARY: This document contains amendments to prohibited transaction exemptions (PTEs) 75-1, 77-4, 80-83 and 83-1. Generally, the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (the Code) prohibit […]

Amendments to and Partial Revocation of PTEs 86-128 and 75-1

The DOL has also released, in conjunction with the release of the final fiduciary conflict of interest regulations, amendments to various Prohibited Transaction Exemptions. Document Excerpt The Department is amending and partially revoking PTEs 86-128 and 75-1 on its own motion, pursuant to ERISA section 408(a) and Code section 4975(c)(2), and in accordance with the […]

Amendment to PTE 75-1

Along with the final regulations and Best Interest Contract Exemption, the DOL has also released amendments to certain Prohibited Transaction Exemptions including to PTE 75-1. Document Excerpt SUMMARY: This document contains an amendment to PTE 75-1, Part V, a class exemption from certain prohibited transactions provisions of the Employee Retirement Income Security Act of 1974 […]

PBGC Guidance

PBGC Charts Risk of Insolvency in Upcoming Years for Multiemployer Program Component

The PBGC, in its report to Congress, projects the likelihood of insolvency of its multiemployer plan insurance program over a 20 year period absent a significant premium increase. Document Excerpt Based on these projections, and assuming no changes either in multiemployer plans or in PBGC’s multiemployer program, there is more than a 40 percent likelihood […]

Final 4010 Regulations

The PBGC releases its final Section 4010 annual reporting regulation. Document Excerpt The Pension Benefit Guaranty Corporation (“PBGC”) is amending its regulation on Annual Financial and Actuarial Information Reporting to codify provisions of recent legislation and related guidance that affect reporting under ERISA section 4010. The final rule modifies the reporting waiver under the current […]

Electronic Premium Filing Ready for 2016

The PBGC announces that it is now ready to accept online electronic premium filings for 2016. Document Excerpt 2016 Premium Filings: My PAA is now ready to accept electronic premium filings for plan years beginning in 2016. For additional information, see the following pages: Premium Payment Instructions & Addresses, What’s New in My PAA, Online […]

PBGC Request OMB Approve Information Collection to Locate Missing Participants

The PBGC is requesting that the Office of Management and Budget approve changes to an information collection needed to locate missing participants under a terminated defined benefit plan. Document Excerpt The Pension Benefit Guaranty Corporation (PBGC) is modifying its collection of information on Locating and Paying Participants (OMB control number 1212-0055; expires December 31, 2015) […]

Comments on Proposed Information Collection to Pay Participants

The PBGC request comments on its proposal to modify information collected in order to pay participants. Document Excerpt The Pension Benefit Guaranty Corporation (“PBGC”) intends to request that the Office of Management and Budget (“OMB”) approve modifications to a collection of information under the Paperwork Reduction Act. The purpose of the information collection is to enable […]

PBGC Disaster Relief For Parts of South Carolina

The PBGC announces disaster relief from its deadlines for parts of South Carolina hit by severe storms and flooding. Document Excerpt Pension Benefit Guaranty Corporation (“PBGC”) is waiving certain penalties and extending certain deadlines in response to the Severe Storms and Flooding that began on October 1, 2015, in South Carolina. Link http://www.pbgc.gov/prac/other-guidance/dr/dr15-10.html

Articles, White Papers & Other Information

Supreme Court Decision Remanding Contraceptive Case

Unable to reach a decision, the Supreme Court has remanded the religious Affordable Care Act contraceptive case to the lower court for compromise. Document Excerpt In light of the positions asserted by the parties in theirsupplemental briefs, the Court vacates the judgmentsbelow and remands to the respective United States Courtsof Appeals for the Third, Fifth, […]

District Court Decision striking down ACA Cost sharing Payments to Insurers

The court found that the payments violated the Constitutional requirement that Congress must first appropriate the payments. Document Excerpt The question is whether Section 1402 can nonetheless be funded through the same, permanent appropriation. It cannot. Paying out Section 1402 reimbursements without an appropriation thus violates the Constitution. Link https://ecf.dcd.uscourts.gov/cgi-bin/show_public_doc?2014cv1967-73

GAO Report Finds Security and Privacy Enhancements Needed for Federal Exchange

The Government Accounting Office’s report finds that Healthcare.gov needs enhancements to protect security and privacy. Document Excerpt The Centers for Medicare & Medicaid Services (CMS) reported 316 security-related incidents, between October 2013 and March 2015, affecting Healthcare.gov—the web portal for the federal health insurance marketplace—and its supporting systems. According to GAO’s review of CMS records […]

Plan Cannot Recover Overpayments from Participant’s General Assets

The Supreme Court held that a plan cannot recover plan overpayments from a participant’s general assets where the proceeds from a settlement had been dissipated on nontraceable items. Document Excerpt We hold that, when a participant dissipates the whole settlement on nontraceable items, the fiduciary cannot bring a suit to attach the participant’s general assets […]

Women’s Pension Protection Act of 2015

The bill, if enacted, would extend spousal consent requirements to all individual account plans except where the distribution is being rolled over to another tax-deferred vehicle and would require coverage under retirement plans for certain part time employees. Document Excerpt Link https://www.congress.gov/bill/114th-congress/senate-bill/2110/text

Supreme Court Upholds Subsidies in Federally Maintained Exchanges

In a 6-3 decision, the Supreme Court upholds subsidies in federally maintained exchanges in King v. Burwell. Document Excerpt Held: Section 36B’s tax credits are available to individuals in States that have a Federal Exchange. Pp. 7–21. Link http://www.supremecourt.gov/opinions/14pdf/14-114_qol1.pdf

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