Today's Update

IRS Guidance

TEGE Advisory Committee 2018 Report and Recommendations

The recommendations include suggestions for how the IRS might open a more limited Determination Letter program including a limited scope program. Document Excerpt Link https://www.irs.gov/pub/irs-pdf/p4344.pdf

EPCU–Party-in-Interest Transaction Project

The Employee Plans Compliance Unit reports on its Party-In-Interest transaction. Document Excerpt The project goals were to determine whether filed Forms 5500 contained correctly reported non-exempt party-in-interest transactions and whether the related Schedules G and/or Forms 5330 were accurately prepared and timely filed when required. The project selected returns with large reported non-exempt transactions, representing […]

EPCU Project–Non-Cash Contributions Project

The Employee Plans Compliance Unit’s Non-Cash Contributions project involved reviewing plans that reported non-cash contribution amounts on Form 5500. Document Excerpt The project reviewed plans that reported non-cash contribution amounts on Schedule H or Schedule I to determine whether there were non-cash contributions and, if so, whether the contributions were allowable. The EPCU selected Forms […]

IRS Publishes new Employee Plans Issue Snapshots

Included are the following: Treatment of 415(c) Dollar Limitations in a Short Limitation Year Treatment of 401(a)(17) Limitation in Defined Contribution Plan in a Short Plan Year Borrowing Limits for Participants with Multiple Plan Loans Qualification Requirements for Non-Electing Church Plans under IRC Section 401(a) Vesting Schedules for Matching Contributions Plan Forfeitures Used for Qualified […]

Understanding Your 227 Letter from the IRS

The IRS provides guidance on understanding your 227 letter, acknowledgment letters sent to close an ESRP (Employer Shared Responsibility Payment) inquiry. Document Excerpt The various Letters 227 are acknowledgement letters sent to close an ESRP inquiry or provide the next steps to the Applicable Large Employer (ALE) regarding the proposed Employer Shared Responsibility Payment (ESRP). […]

Applicable Percentage Tables for 2019

Revenue Procedure 2018-34 provides the applicable percentage table in Section 36B(b)(3)(A) and the required contribution percentage to provide percentages to be used for 2019. Document Excerpt This revenue procedure provides indexing adjustments for certain provisions under section 36B of the Internal Revenue Code. In particular, it updates the Applicable Percentage Table in § 36B(b)(3)(A)(i) to […]

DOL Guidance

Association Health Plans for Small Businesses

The Trump Administration’s reform to allow small businesses to purchase association health plans thereby avoiding many of the rules crafted to apply to small business health insurance. Document Excerpt This document contains a final regulation under Title I of the Employee Retirement Income Security Act (ERISA) that establishes additional criteria under ERISA section 3(5) for […]

ERISA Advisory Council on Guidance on Bonding Requirements

The EBSA has asked the 2018 ERISA Advisory Council to evaluate the effectiveness of existing guidance governing bonding requirements. Document Excerpt The Employee Benefits Security Administration (the “Department”) has asked the Council to evaluate the effectiveness of the Department’s regulations and sub-regulatory guidance promulgated under section 412 of ERISA in safeguarding plan funds or other […]

DOL’s Annual Report to Congress on Self-Insured Group Health Plans

DOL releases its annual report to Congress on self-insured group health plans. Document Excerpt Link https://www.dol.gov/sites/default/files/ebsa/researchers/statistics/retirement-bulletins/annual-report-on-self-insured-group-health-plans-2018.pdf

DOL’s Spring Priority Guidance List

The DOL has released its Spring 2018 Priority Guidance List. Document Excerpt Link https://www.reginfo.gov/public/do/eAgendaMain?operation=OPERATION_GET_AGENCY_RULE_LIST&currentPub=true&agencyCode=&showStage=active&agencyCd=1200&Image58.x=41&Image58.y=15

DOL Temporary Enforcement Policy on Prohibited Transaction Rules for Investment Advice Fiduciaries

In light of the Fifth Circuit’s decision vacating the fiduciary conflict of interest rule, the DOL has issued temporary enforcement guidance on the prohibited transaction rules applicable to investment advice fiduciaries. Document Excerpt Accordingly, for the period from June 9, 2017, until after regulations or exemptions or other administrative guidance has been issued, the Department […]

Notice Clarifying Why Final ACA Rules Won’t be amended to reflect Recommendations of Emergency Room Physicians

The Departments are issuing a Notice to clarify the Departments’ decisions not to adopt recommendations made by the American College of Emergency Physicians as reflected in a complaint filed in the United States District Court of Columbia. Document Excerpt The American College of Emergency Physicians (ACEP) filed a complaint in the United States District Court […]

PBGC Guidance

Proposed Updated Rule on Terminated and Insolvement Multiemployer Plans

Document Excerpt The Pension Benefit Guaranty Corporation proposes to amend its multiemployer reporting, disclosure, and valuation regulations to reduce the number of actuarial valuations required for smaller plans terminated by mass withdrawal, add a valuation filing requirement and a withdrawal liability reporting requirement for certain terminated plans and insolvent plans, remove certain insolvency notice and […]

PBGC Changes Its Process on Disaster Relief

From now one, relief will be more closely tied to IRS relief. Document Excerpt The Pension Benefit Guaranty Corporation (PBGC) is changing how it announces relief from filing deadlines and penalties when a disaster occurs. Under an Announcement made today, PBGC’s disaster relief will be available at the same time the Internal Revenue Service issues […]

Disaster Relief for Parts of Hawaii

The PBGC announces disaster relief for parts of Hawaii impacted by the recent volcano activity. Document Excerpt The Pension Benefit Guaranty Corporation (“PBGC”) is waiving certain penalties and extending certain deadlines in response to volcanic eruptions and earthquakes that began on May 3, 2018, in Hawaii. Link https://www.pbgc.gov/prac/other-guidance/dr/dr18-06

PBGC Projections Report FY 2017

The PBGC releases its Fiscal Year 2017 projections report. Document Excerpt This year’s projections for PBGC’s Multiemployer Program show a very high likelihood of insolvency during FY 2025 and near certainty of insolvency by the end of FY 2026. Compared to last year’s projections, the risk of insolvency decreases slightly prior to fiscal year 2024 […]

White House Announces Intent to Nominate PBGC Director

The White House has announced its intent to nominate Gordon Hartogensis as director of the PBGC. Document Excerpt Link https://www.whitehouse.gov/presidential-actions/president-donald-j-trump-announces-intent-nominate-personnel-key-administration-posts-43/

Proposed Revisions to Form 715

The PBGC releases proposed changes to Form 715, Power of Attorney for participants receiving payment from the PBGC and request for comments. Document Excerpt The Pension Benefit Guaranty Corporation (PBGC) intends to request that the Office of Management and Budget (OMB) extend approval, with modifications, to a collection of information under the Paperwork Reduction Act. […]

Articles, White Papers & Other Information

Railroad Stock Options are Not Compensation Subject to Railroad Retirement Plan Tax

So holds the Supreme Court in Wisconsin Central Ltd. v. U.S., No. 17-530 (S. Ct. June 21, 2018). Document Excerpt Held: Employee stock options are not taxable “compensation” under the Railroad Retirement Tax Act because they are not “money remuneration.” When Link https://www.supremecourt.gov/opinions/17pdf/17-530_6537.pdf

Trump Administration Argues Key Parts of ACA are Unconstitutional

In a filing before a district court, the DOL signals it will not defend key parts of the Affordable Care Act stating that once the Tax Cuts and Jobs Act zeros out the individual mandate penalty, the individual mandate, guaranteed issue and community ratings provisions become unconstitutional. Document Excerpt In sum, once the associated financial […]

House Subcommittee Seeks ERISA Changes

House Subcommittee seeks bipartisan proposals to update ERISA including encouraging defined contribution plans to provide annuities, eliminating the “common nexus” requirement for private multiple employer plans and other changes. Document Excerpt Subcommittee members and witnesses discussed four bipartisan proposals that would amend ERISA to better meet the retirement plan needs of employees and employers with […]

HHS Publication–Trump Proposal to Lower Drug Prices

HHS releases a publication discussing the Administration’s proposal to lower drug prices. Document Excerpt Link https://www.hhs.gov/sites/default/files/AmericanPatientsFirst.pdf

White House Announces Intent to Nominate PBGC Director

The White House has announced its intent to nominate Gordon Hartogensis as director of the PBGC. Document Excerpt Link https://www.whitehouse.gov/presidential-actions/president-donald-j-trump-announces-intent-nominate-personnel-key-administration-posts-43/

HHS Blueprint for Lowering Drug Prices

HHS releases its blue-print for lowering drug prices and out-of-pocket cost and request for comments. Document Excerpt SUMMARY: Through this request for information, HHS seeks comment from interested parties to help shape future policy development and agency action. Link https://s3.amazonaws.com/public-inspection.federalregister.gov/2018-10435.pdf

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