Today's Update

IRS Guidance

Computation of Maximum Loan Amount in the case of Multiple Loans

After issuing guidance earlier this year, the IRS has issued superseding guidance to agents on calculating the maximum loan amount in the event of multiple loans. Document Excerpt This memorandum supersedes interim guidance TE/GE-04-0417-0016 entitled Computation of Maximum Loan Amount under IRC § 72(p)(2)(A), issued April 20, 2017. This memorandum directs EP Examinations staff to […]

Updated Suspension of Benefit provisions for Plans in Critical and Declining Status

Revenue Procedure 2017-43 provides updated guidance for multiemployer plans in critical or declining status applying for Treasury approval of suspension of benefits. 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 […]

Cumulative List of Changes for Lead Pre-approved Defined Contribution Plans

Notice 2017-37 sets forth the Cumulative list of Plan changes required for pre-approved defined contribution plans. Document Excerpt This notice contains the Cumulative List of Changes in Plan Qualification Requirements for Pre-Approved Defined Contribution Plans for 2017 (2017 Cumulative List). As described in section 17 of Rev. Proc. 2016-37, 2016-29 I.R.B. 136, 146, Cumulative Lists […]

New Guidance on Issuing Opinion Letters for Pre-approved Plans

Rev. Proc. 2017-41 provides updated guidance on the issuance of opinion letters for pre-approved plans, i.e., volume submitter and master/prototype plans. Document Excerpt This revenue procedure sets forth the procedures of the Internal Revenue Service (IRS) for issuing Opinion Letters regarding the qualification in form of Pre-approved Plans under §§ 401, 403(a), and 4975(e)(7) of […]

Electronic Payment of Certain User fees

The IRS will begin requiring the electronic payment of certain user fees including on request for a Private Letter Ruling beginning June 15, 2017. Document Excerpt Beginning June 15, taxpayers requesting letter rulings, closing agreements and certain other rulings from the Internal Revenue Service will need to make user fee payments electronically using the federal […]

Electronic Payment of certain User Fees

IR 2017-102 announces that certain user fees, including when requesting a letter ruling or a closing agreement, will have to be paid electronically through pay.gov Document Excerpt Beginning June 15, taxpayers requesting letter rulings, closing agreements and certain other rulings from the Internal Revenue Service will need to make user fee payments electronically using the […]

DOL Guidance

DOL to Review Final Amendments to Disability Claims Regulations

The DOL announced it is reviewing the changes made to the disability claims regulations for possible amendment or delay. Document Excerpt Link https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=201704&RIN=1210-AB39

DOL Seeks Additional 18 Month Delay of Full BICE

The DOL is proposing an additional 18 month delay, until July 1, 2019, for fiduciaries to comply with the full requirements of the Best Interest Contract Exemption. Document Excerpt Link https://www.reginfo.gov/public/jsp/EO/eoDashboard.jsp

Second Set of FAQs on Fiduciary Transition Period

The DOL has issued a second set of FAQs dealing with the fiduciary conflict of interest rules during the transition period. Document Excerpt The following FAQs provide information on (1) a “fiduciary status disclosure” issue under the Department of Labor’s ERISA section 408(b)(2) service provider disclosure regulation that applies to ERISA pension plans, (2) whether […]

DOL Intends to Delay Fiduciary BICE and Other Exemptions

The DOL has notified a district court in which the fiduciary rules are being litigated that it intends to delay the applicability date of the Best Interest Contract Exemption and other exemptions issued as part of its conflict of interest regulations. Document Excerpt Extension of Transition Period and Delay of Applicability Dates From January 1, […]

DOL Issues FAQs on Conflict of Interest Regulations

The DOL has issued additional guidance on its fiduciary conflict of interest regulations in the form of Frequently Asked Questions. Document Excerpt The following FAQs provide information on (1) a “fiduciary status disclosure” issue under the Department of Labor’s ERISA section 408(b)(2) service provider disclosure regulation that applies to ERISA pension plans, (2) whether recommendations […]

FAQs on Mental Health Parity Implementation

The Agencies released this FAQ on Mental Health Parity Implementation. Document Excerpt Set out below is an additional frequently asked question (FAQ) regarding implementation of the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA), as amended by the Affordable Care Act and the 21st Century Cures Act (Cures […]

PBGC Guidance

PBGC Projections Report

The PBGC’s report on projected solvency is released. It projects that the PBGC’s multiemployer pension plan program will likely run out of money by the end of 2025 while the financial picture for single-employer plans will likely continue to improve. Document Excerpt This year’s projections for PBGC’s multiemployer program show less uncertainty regarding the year […]

Qs and As on Risk Mitigation and Early Warning Program

The PBGC releases a series of Questions and Answers on its Risk Mitigation and Early Warning Program. Document Excerpt As part of posting our updated Risk Migration & Early Warning Program information, we asked stakeholders for feedback. Below are some Questions and Answers for the most common questions and comments we received. Link https://www.pbgc.gov/prac/risk-migration-q-and-a

PBGC Penalties Updated

The PBGC announces updates to its civil penalties. Document Excerpt The Pension Benefit Guaranty Corporation is required to amend its regulations annually to adjust the penalties provided for in sections 4071 and 4302 of the Employee Retirement Income Security Act of 1974. This action is being taken in accordance with the Federal Civil Penalties Inflation […]

ABA Committee Q & A Session with PBGC

The American Bar Association Joint Committee on Employee Benefits releases its annual Q & A session with the PBGC. Document Excerpt The following questions and answers are based on informal discussions between private-sector representatives of the JCEB and PBGC staff members. The questions were submitted by ABA members in advance to the agency and the […]

Allocation of Assets; Interest Assumptions for Valuing Benefits

The PBGC releases updated guidance on the applicable interest rate to be used to value benefits in a single employer plan under Section 4044 for the first quarter of 2017. Document Excerpt This final rule amends the Pension Benefit Guaranty Corporation’s regulation on Allocation of Assets in Single-Employer Plans to prescribe interest assumptions under the […]

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 http://www.pbgc.gov/news/press/releases/pr16-16.html

Articles, White Papers & Other Information

CBO Estimates of the Cost of Terminating Cost Sharing Subsidies

The Congressional Budget Office released its report on the impact on the budget of terminating the Affordable Care Act’s cost sharing payments. Document Excerpt At the request of the House Democratic Leader and the House Democratic Whip, the Congressional Budget Office and the staff of the Joint Committee on Taxation (JCT) have estimated the effects […]

Supreme Court rules in Favor of Religiously Affiliated Entities

The Supreme Court unanimously ruled in favor of an expanded church plan definition that includes certain plans established by religiously affiliated entitles. Document Excerpt Instead, it added language whose most naturalreading is to enable a plan “maintained” by a principal-purpose organization to substitute for a plan both “established” and “maintained” by a church. And as […]

Small Business will be allowed to Bypass the ACA Marketplace

CMS has announced that small businesses will be allowed to bypass the SHOP, the Affordable Care Act Marketplace designed for small businesses. Document Excerpt CMS will be exploring a more efficient implementation of the Federally-facilitated SHOP Marketplaces in order to promote insurance company and agent/broker participation and make it easier for small employers to offer […]

Fourth Circuit’s Decision on Removal of Reynolds Stock

The Fourth Circuit affirms the district court’s decision concluding that the fiduciaries’ decision to remove Reynolds stock did not cause the losses because a prudent fiduciary would have made the same divestment decision at the same time. Document Excerpt The “would have” standard does not demand such an impossible feat. Having a standard in which […]

CBO Estimates Of American Health Care Act

The CBO has released its estimates of the direct cost and effect of the American Health Care Act passed by the House. Document Excerpt CBO and the staff of the Joint Committee on Taxation (JCT) have prepared an estimate of the direct spending and revenue effects of H.R. 1628, the American Health Care Act, as […]

Section-by-Section Summary of American Health Care Act

The House, on a partisan vote, passed the American Health Care Act designed to repeal and replace the Affordable Care Act. Document Excerpt Link http://strategichealthcare.net/wp-content/uploads/2017/05/AHCA-Section-by-Section-Summary-FINAL.pdf

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