Today's Update

IRS Guidance

Lifetime Income through Target Date Investments

Notice 2014-66 provides guidance on the provision of lifetime income in a defined contribution plan through investment in a series of target date investment options. Document Excerpt This notice provides a special rule that enables qualified defined contribution plans to provide lifetime income by offering, as investment options, a series of target date funds (TDFs) […]

2015 Benefits Limitations

The IRS has released updated benefit limits for 2015 taking into consideration cost of living increases. Document Excerpt The Internal Revenue Service today announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. Many of the pension plan limitations will change for 2015 because the increase in the […]

Updated Corporate Bond Rates and Yield Curve

Notice 2014-62 provides updated information on the corporate bond rates and yield curve for funding purposes. Document Excerpt  This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. In addition, this […]

Guidance Providing for Deemed Income Tax Deferral Election Under Canadian Treaty Covered Plans

  Rev. Proc. 2014-55 provides that eligible US citizens and residents with certain Canadian retirement plan will be treated as having made the election under Article XVIII(7) of the US/Canadian Income Tax Treaty to defer US income tax until distribution. Document Excerpt This revenue procedure provides guidance for applying paragraph 7 of Article XVIII (Pensions and […]

Returns Required To be Filed on Magnetic Media

The IRS issues final regulations regarding which employee benefit plan returns are required to be filed on magnetic media. Document Excerpt This document contains final regulations relating to the requirements for filing certain employee retirement benefit plan statements, returns, and reports on magnetic media. The term magnetic media includes electronic filing, as well as other […]

Additional Guidance on Hybrid Plans

The IRS has released final regulations regarding hybrid. Document Excerpt This document contains final regulations providing guidance relating to applicable defined benefit plans. Applicable defined benefit plans are defined benefit plans that use a lump sum-based benefit formula, including cash balance plans and pension equity plans, as well as other hybrid retirement plans that have […]

DOL Guidance

Advisory Opinion on Use of Target Date Funds for Lifetime Income

In conjunction with the IRS’ release of Notice 2014-66, the Department of Labor has issued an Advisory Opinion discussing the implications of using a series of target date funds to provide lifetime income from a defined contribution plan. Document Excerpt This responds to your request for the Department of Labor’s (the Department) views on whether […]

Affordable Care Act Implementation Part XXI

The DOL releases the Affordable Care Act Implementation Qs & As Part XXI. Document Excerpt Set out below is an additional Frequently Asked Question (FAQ) regarding implementation of the Affordable Care Act. This FAQ has been prepared jointly by the Departments of Labor, Health and Human Services (HHS), and the Treasury (collectively, the Departments). Like […]

Amendments to Excepted Benefits Regulations

HHS and the DOL and other agencies publish amendments to the excepted benefits regulations. Document Excerpt This document contains final regulations that amend the regulations regarding excepted benefits under the Employee Retirement Income Security Act of 1974, the Internal Revenue Code (the Code), and the Public Health Service Act. Excepted benefits are generally exempt from […]

Request for Information on Standards For Brokerage Windows

  The DOL has released a Request for Information regarding standards that should apply for brokerage windows under participant-directed plans. Document Excerpt The Request for Information contained in this Notice will assist the Department in determining whether, and to what extent, regulatory standards or other guidance concerning the use of brokerage windows by plans are […]

Updated Guidance on Dealing With Missing Participants

Field Assistance Bulletin 2014-01 provides updated guidance on dealing with missing participants when a defined contribution plan terminates. It updates and replaces the prior Field Assistance Bulletin previously issued. Document Excerpt This Bulletin replaces Field Assistance Bulletin 2004-02 (FAB 2004-02) and reflects important changes that have occurred in the ten years since the publication of […]

Definition of “State” For purposes of ACA

The CMS releases a letter discussing the definition of “state” for purposes of the Affordable Care Act and the impact on Puerto Rico and other U.S. Territories. Document Excerpt After a careful review of this situation and the relevant statutory language, HHS has determined that the new provisions of the PHS Act enacted in title […]

PBGC Guidance

2015 Premium Rates

The PBGC has updated its website to reflect the 2015 PBGC premium rates. Document Excerpt The per-participant flat premium rate for plan years beginning in 2015 is $57 for single-employer plans (up from a 2014 rate of $49) and $13 for multiemployer plans (up from a 2014 rate of $12). For information about future rates, […]

Guidance on HAFTA and 4010 Reporting

Technical Update 14-2 provides guidance on the effect of HAFTA on 4010 reporting. Document Excerpt This Technical Update 14-2 provides PBGC guidance on the effect of the Highway and Transportation Funding Act of 2014 (HATFA) on annual financial and actuarial information reporting under section 4010 of ERISA and part 4010 of PBGC’s regulations.1  This Technical […]

November Lump Sum Rate

The PBGC announces the November lump sum interest rate. Document Excerpt The immediate interest rate for valuing lump sum payments for the month of November 2014 is 1.25% and the deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. Link http://pbgc.gov/prac/interest/monthly.html?cid=COLA01ABOCT1520141&source=govdelivery&utm_medium=email&utm_source=govdelivery

Technical Update On HAFTA Affect on Premium Filings

Technical Update 14-1 provides guidance on the impact of HAFTA on premium filings. Document Excerpt This Technical Update 14-1 provides Pension Benefit Guaranty Corporation (PBGC) guidance on the effect of the Highway and Transportation Funding Act of 2014 (HATFA) on PBGC premiums. Link http://www.pbgc.gov/prac/other-guidance/tu/tu14-1.html?source=govdelivery&utm_medium=email&utm_source=govdelivery

October lump sum Rates

The PBGC releases the interest rate for lump sums payable in October. Document Excerpt The immediate interest rate for valuing lump sum payments for the month of October 2014 is 1.00% and the deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. Link http://pbgc.gov/prac/interest/monthly.html?cid=COLA01ABSEP1520141&source=govdelivery&utm_medium=email&utm_source=govdelivery

Moratorium on 4062(e) Enforcement

The PBGC has announced a moratorium on ERISA Section 4062(e) enforcement. Document Excerpt WASHINGTON — Today the Pension Benefit Guaranty Corporation announced a moratorium, until the end of 2014, on the enforcement of 4062(e) cases. The moratorium will enable PBGC to ensure that its efforts are targeted to cases where pensions are genuinely at risk. […]

Articles, White Papers & Other Information

FAQs on HPID

CMS releases frequently asked questions on the Affordable Care Act’s health plan identifiers requirement. Document Excerpt Link https://questions.cms.gov/faq.php?isDept=0&search=HPID&searchType=keyword&submitSearch=1&id=5005

DC Circuit Holds that Subsidies May Not be Extended to Federal Exchanges

Issuing its ruling shortly before the Fourth Circuit upheld such subsidies, the DC Circuit holds that the Affordable Care Act’s subsidies may not be extended to those who purchase insurance through a Federal Exchange as the statute provides for such subsidies only when purchased under a state maintained exchange. Document Excerpt We conclude that appellants […]

Fourth Circuit Upholds Federal Exchange Subsidies

Concluding that the statute and the legislative history was not clear, the Fourth Circuit upheld the regulatory interpretation allowing subsidies to those who otherwise qualify but who purchase under Federally established exchanges. Document Excerpt It is thus entirely sensible that the IRS would enact the regulations it did, making Chevron deference appropriate. Confronted with the […]

Definition of “State” For purposes of ACA

The CMS releases a letter discussing the definition of “state” for purposes of the Affordable Care Act and the impact on Puerto Rico and other U.S. Territories. Document Excerpt After a careful review of this situation and the relevant statutory language, HHS has determined that the new provisions of the PHS Act enacted in title […]

HHS Announces Auto Enrollment Plan For Marketplace for 2015

  In an effort to simplify and avoid some of the turmoil that met its initial enrollment period, HHS has announced a method by which current Marketplace participants may be automatically reenrolled in their current plan for 2015.   Document Excerpt Today, the U.S. Department of Health and Human Services (HHS) expects to announce its […]

Supreme Court Rejects Moench Presumption

Rejecting the analysis of virtually every circuit that has reviewed the issue, the Supreme Court unanimously rejected the Moench presumption of prudence. Document Excerpt Link Held: ESOP fiduciaries are not entitled to any special presumption ofprudence. Rather, they are subject to the same duty of prudence thatapplies to ERISA fiduciaries in general, §1104(a)(1)(B), except that […]

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