Benefits Forward

In light of its changed interpretation, the IRS has withdrawn part of its proposed regulations governing the one rollover per year rule. Document Excerpt Based on the language in section 408(d)(3)(B), a recent Tax Court opinion, Bobrow v. Commissioner, T.C. Memo. 2014-21, held that the limitation applies on an aggregate basis. Thus, under Bobrow, an […]

The IRS has released the July edition of its Employee Plans News which includes a discussion of the final longevity regulations and updates on 403(b) plans.   Document Excerpt Final rules regarding longevity annuities – expand proposed rules on longevity annuities for plans and IRAs (T.D. 9673) 403(b) plans update and latest developments phone forum […]

  The IRS issues its final longevity regulations applicable to defined contribution plans. Document Excerpt This document contains final regulations relating to the use of longevity annuity contracts in tax-qualified defined contribution plans under section 401(a) of the Internal Revenue Code (Code), section 403(b) plans, individual retirement annuities and accounts (IRAs) under section 408, and […]

HHS, DOL and Treasury have issued final regulations on the Affordable Care Act’s 90 day Waiting Period. Document Excerpt These final regulations clarify the maximum allowed length of any reasonable and bona fide employment-based orientation period, consistent with the 90-day waiting period limitation set forth in section 2708 of the Public Health Service Act, as […]

The IRS has released revised Model Forms for specified failures that plans may use when filing for correction under VCP. Document Excerpt Appendix C Schedules (Part II) You can use one or more of these schedules with your Model Compliance Statement to resolve certain qualification failures. If you aren’t using the Model Compliance Statement, you may […]

  Notice 2014-41 sets forth the updated corporate bond weighted average interest rate. Document Excerpt This notice provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. In addition, this notice provides guidance as to the […]

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 […]

The DOL has released Part XX of its Frequently Asked Questions regarding the implementation of the Affordable Care Act specifically discussing dropping or reducing contraceptive coverage. Document Excerpt Q: My closely held for-profit corporation’s health plan will cease providing coverage for some or all contraceptive services mid-plan year. Does this reduction in coverage trigger any […]

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 […]

HHS, DOL and Treasury have issued final regulations on the Affordable Care Act’s 90 day Waiting Period. Document Excerpt These final regulations clarify the maximum allowed length of any reasonable and bona fide employment-based orientation period, consistent with the 90-day waiting period limitation set forth in section 2708 of the Public Health Service Act, as […]

The DOL has released an updated Model COBRA General Notice. Document Excerpt   The Department of Labor has developed a model Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation coverage general notice that plans may use to provide the election notice.  To use this model election notice properly, the Plan Administrator must fill in […]

The DOL has released an updated Model COBRA Election Notice.   Document Excerpt The Department of Labor has developed a model Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation coverage election notice that the Plan may use to provide the election notice.  To use this model election notice properly, the Plan Administrator must fill […]

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. […]

The PBGC has published the lump sum rate applicable for July. Document Excerpt The immediate interest rate for valuing lump sum payments for the month of July 2014 is 1.25% and the deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. (The immediate interest rate for June 2014 was 1.25% for […]

The PBGC has released its final regulations governing the valuation and notice requirements for multiemployer plans. Document Excerpt This final rule amends the Pension Benefit Guaranty Corporation’s (PBGC) multiemployer regulations to make the provision of information to PBGC and plan participants more efficient and effective and to reduce burden on plans and sponsors. The amendments […]

The PBGC releases the June lump sum interest rates. Document Excerpt The immediate interest rate for valuing lump sum payments for the month of June 2014 is 1.25% and the deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. (The immediate interest rate for May 2014 was 1.50% for lump sum […]

  The PBGC has recognized disaster relief for affected plans in parts of Florida.   Document Excerpt Pension Benefit Guaranty Corporation (“PBGC”) is waiving certain penalties and extending certain deadlines in response to the Severe Storms, Tornadoes, Straight-Line Winds and Flooding that began on April 28, 2014, in Florida.     Link   http://www.pbgc.gov/res/other-guidance/dr/dr14-05.html

The PBGC releases its final regulations on various PPA ’06 changes including the phase in period for guaranteed benefits that are contingent on the occurrence of an unpredictable contingent event. Document Excerpt This final rule amends PBGC’s regulation on Benefits Payable in Terminated Single-Employer Plans, which sets forth rules on PBGC’s guarantee of pension plan […]

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 […]

  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 […]

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 […]

The Supreme Court unanimously ruled that inherited IRAs are not retirement funds for purposes of the bankruptcy exemption. Document Excerpt   Link http://www.supremecourt.gov/opinions/13pdf/13-299_mjn0.pdf

CMS issues guidance on special enrollment rights for certain individuals under the Federal Exchange that it hopes state exchanges will also follow.   Document Excerpt This guidance provides information related to three types of special enrollment periods (SEPs) for persons seeking to enroll in qualified health plans (QHPs) through the Federally-facilitated Marketplace (FFM). State-based Marketplaces […]

HHS released the proposed Notice of Benefit and Payment Parameters which includes, among other things, an amendment to the 2015 open enrollment period. Document Excerpt This proposed rule sets forth payment parameters and oversight provisions related to the risk adjustment, reinsurance, and risk corridors programs; cost-sharing parameters and cost-sharing reductions; and user fees for Federally-facilitated […]