Today's Update

IRS Guidance

Agents are informed of new Process for Information Document Requests

An internal memorandum advises Employee Plan personnel of the new process for IDR request. Document Excerpt Link The following procedures are to be followed when preparing, issuing and following-up on an Information Document Request (IDR). The examiner must conduct initial research applicable to the TE/GE organization and the potential issues to identify the information that […]

Extension of certain 2016 ACA Reporting Requirements

Notice 2016-70 extends the due date for certain information reporting requirements for 2016 under the Affordable Care Act. Document Excerpt This notice extends the due date for certain 2016 information-reporting requirements for insurers, self-insuring employers, and certain other providers of minimum essential coverage under section 6055 of the Internal Revenue Code (Code) and for applicable […]

Application of Market Rate Returns to PEPs

Notice 2016-67 provides guidance as the application of the market rate of return requirements to pension equity plans. Document Excerpt This notice describes the applicability of the market rate of return limitation rules of § 411(b)(5)(B)(i) and § 1.411(b)(5)-1(d) to a defined benefit plan that expresses a participant’s accumulated benefit as the current value of […]

IRS Announces 2017 Retirement Plan Limits

The IRS has announced the various contribution and benefit limits that will apply to retirement plans in 2017. Document Excerpt Section 415 of the Internal Revenue Code (the Code) provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Secretary of the Treasury annually adjust these limits for […]

Field Directive for EP on Determination Letters for Pension Equity Plans

The IRS has released a Field Directive governing determination letter request for Pension Equity Plans. Document Excerpt This memorandum supersedes memorandum #TEGE-07-1114-0028, dated October 9, 2014, and provides direction to EP (R&A) employees on the application of the accrued benefit rules under section 411(b)(1)(G) of the Internal Revenue Code (IRC) to pending requests for determination […]

Tax Exempt and Governmental Entitites 2017 Work Plan

The Work Plan includes a summary of 2016 examinations as well as targeted areas for 2017. Document Excerpt Specialty Programs: EP will continue to apply resources into specialty program casework, focusing on EP Team Audit (EPTA)/Large Case, multiemployer (MAP) plans, IRC 403(b)/457(b) plans, cash balance plans, hybrid 401(k) plans (such as those with the age […]

DOL Guidance

Agencies Release Advance Copies of 2016 Form 5500

The Departments of Labor, Treasury and the PBGC have released advance copies of the 2016 Form 5500. Document Excerpt WASHINGTON – The U.S. Department of Labor’s Employee Benefits Security Administration, the Internal Revenue Service, and the Pension Benefit Guaranty Corporation today released advance informational copies of the 2016 Form 5500 annual return/report and related instructions. […]

Excepted Benefits, Lifetime and Annual Limits; Short-Term Insurance

The Departments have issued additional guidance, not yet published, but available in the unpublished form at this location. Document Excerpt Link

DOL FAQ on Conflict Of Interest Rules

The DOL has released its first FAQ on implementing the DOL’s conflict of interest regulations which go into effect next year. Document Excerpt The preambles to the final Rule and exemptions include detailed explanations of their relevant terms and provisions, as well as descriptions of the purposes and principles that motivated this rulemaking. In addition […]

Mental Health and Substance Use Disorder Parity Compliance Assistance Index

The Departments have released a Mental Health and Substance Use Disorder Parity Compliance Assistance Materials Index pointing out the various locations where substantive guidance can be found. Document Except The Departments have developed this catalogue as a compilation of subregulatory guidance and compliance assistance materials that aim to assist plans, issuers and TPAs as they […]

FAQ Affordable Care Act Implementation Part 34

Released is the most recent FAQ Affordable Care Act Implementation regarding Mental Health and Substance Abuse Parity. Document Excerpt Set out below are additional Frequently Asked Questions (FAQs) regarding implementation of the market reform provisions of the Affordable Care Act and the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of […]

FAQ ACA Implementation Part 33

The agencies release Frequently Asked Questions on Implementation of the Affordable Care Act Part 33. Document Excerpt Set out below is an additional Frequently Asked Question (FAQ) regarding implementation of the market reform provisions of the Affordable Care Act. This FAQ has been prepared jointly by the Departments of Labor (DOL), Health and Human Services […]

PBGC Guidance

PBGC Guarantee Limit

The PBGC has announced higher guaranteed benefit limits for 2017. Document Excerpt WASHINGTON – The Pension Benefit Guaranty Corporation announced today that the guarantee limit for single-employer plans that fail in 2017 will be higher than the limit that applied for 2015 and 2016. Link

PBGC Announces 2017 Premium Rates

The PBGC has announced premium rates for 2017. Document Excerpt The per-participant flat premium rate for plan years beginning in 2017 is $69 for single-employer plans (up from a 2016 rate of $64) and $28 for multiemployer plans (up from a 2016 rate of $27). For plan years beginning in 2017, the variable-rate premium (VRP) […]

Disaster Relief for Parts of North Carolina

The PBGC has announced disaster relief for those affected by Hurricane Mathew in North Carolina. Document Excerpt The disaster area consists of Beaufort, Bladen, Columbus, Cumberland, Edgecombe, Hoke, Lenoir, Nash, Pitt, and Robeson Counties. Link

FAQs on Proposed Expanded Missing Participant Program

The PBGC released Frequently Asked Questions regarding its proposed expansion of the Missing Participant program. Document Excerpt Under PBGC’s proposal, the Program would expand to cover missing participants in terminated defined contribution plans (such as 401(k) plans and profit-sharing plans). Instead of establishing an IRA at a financial institution for each missing participant account, plans […]

Draft Forms For Proposed Expanded Missing Participants Program

Simultaneously with the release of its proposed regulations to expand the missing participant program, the PBGC also released draft forms. Document Excerpt On September 20, 2016, PBGC issued a proposed rule that would expand its existing Missing Participants Program to cover terminated 401(k) and other defined contribution plans and certain defined benefit plans that are […]

Proposed Regulations Extending PBGC Missing Participant Program

Among other expansions, the proposed regulations would expand the program to cover most defined contribution plans. Document Excerpt This proposed rule is needed to implement amendments to section 4050 of ERISA. Those amendments require PBGC to establish rules to handle the benefits of missing participants and beneficiaries under terminated multiemployer plans covered by title IV […]

Articles, White Papers & Other Information

SEC Registration Requirements for Certain 401(k) Plans with Brokerage Windows

The SEC in a Q & A (126.41) indicates that certain 401(k) plans that allow participants to invest in company stock through the plan’s brokerage window may be required to register. Document Excerpt Question 126.41 Q: A company sponsors a 401(k) plan that does not offer an employer securities fund in which employee contributions may […]

Seventh Circuit Rejects Dudenhoeffer Special Pleading for Privately Held Stock

The court interpreted the Supreme Court’s special pleading standard as applying to publicly-traded stock only. Document Excerpt GreatBanc’s (and the district court’s) reliance on Dudenhoeffer is unwarranted. In Dudenhoeffer, the Supreme Court held that ERISA fiduciaries conducting ESOP transactions can generally prudently rely on the market value of publicly traded stock, absent special circumstances. Dudenhoeffer, […]

Discussion Draft on Multiemployer Plan Proposed Changes

Representative Kline releases a discussion draft on changes to modernize multiemployer plans. Document Excerpt WASHINGTON, D.C. | September 9, 2016 – Rep. John Kline (R-MN), chairman of the House Committee on Education and the Workforce, today unveiled a discussion draft of a proposal to modernize the nation’s multiemployer pension system. Part of the committee’s ongoing […]

Finance Committee Retirement Plan Proposals

Senate Finance Committee Ranking Member Ron Wyden, D-Ore. released a discussion draft of the Retirement Improvements and Savings Enhancements (RISE) Act that would, among other changes, prohibit additional contributions to a Roth IRA if its total value exceeds $5 million. The proposal would also eliminate “stretch IRAs”, increase the required beginning date age and allow […]

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

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