Today's Update

IRS Guidance

Temporary Relief For Closed Defined Benefit Plans Extended

Notice 2016-57 extends the temporary nondiscrimination relief for closed defined through 2017. Document Excerpt This notice extends the temporary nondiscrimination relief for closed defined benefit plans that is provided in Notice 2014-5, 2014-2 I.R.B. 276, by making that relief available for plan years beginning before 2018 if the conditions of Notice 2014-5 are satisfied. II. […]

IRS Releases Updated Static Mortality Tables

The tables are to be used in calculating the funding target for calendar year 2017. Document Except This notice provides updated static mortality tables to be used for defined benefit pension plans under § 430(h)(3)(A) of the Internal Revenue Code (Code) and § 303(h)(3)(A) of the Employee Retirement Income Security Act of 1974, Pub. L. […]

IRS Issues Revised User Fee Form For VCP

The IRS has released a revised Form 8951 which reflects more of the fees that are exceptions from the standard fee determination and which no longer list the standard fee by participant count. Document Excerpt Link https://www.irs.gov/pub/irs-pdf/f8951.pdf

One Indirect Coverdell Rollover Per 12- Month Period

The Office of Chief Counsel interprets the rollover rules as applied to Coverdell education accounts as allowing only one indirect rollover in a 12 month period. Document Excerpt “You can make only one rollover from a Coverdell ESA to another Coverdell ESA in any 12-month period regardless of the number of Coverdell ESAs you own. […]

FAQ on 60-Day Waiver Self Certification

The IRS has released Frequently Asked Questions regarding its new self-certification program for those who qualify after missing the 60-day indirect rollover period. Document Excerpt These frequently asked questions and answers provide general information and should not be cited as legal authority. Because these answers do not apply to every situation, yours may require additional […]

Self Certification Process for 60-Day Waiver

The IRS has released new guidance designed to allow qualifying individuals to self certify eligibility for the 60 day rollover waiver. Document Excerpt This revenue procedure provides guidance concerning waivers of the 60-day rollover requirement contained in §§ 402(c)(3) and 408(d)(3) of the Internal Revenue Code (“Code”). Specifically, it provides for a self-certification procedure (subject […]

DOL Guidance

DOL Compliance Guidance in the Wake of Louisiana Storms

The DOL has released compliance guidance for plans with participants affected by the storms and flooding in Louisiana. Document Excerpt WASHINGTON – In light of the devastation following recent storms and flooding in Louisiana, the U.S. Department of Labor’s Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi announced today an update on […]

Final Rule on State-Based IRAs

The DOL has finalized its rules providing a safe harbor for state-based IRAs for private sector employers. Document Excerpt SUMMARY: This document describes circumstances in which state payroll deduction savings programs with automatic enrollment would not give rise to the establishment of employee pension benefit plans under the Employee Retirement Income Security Act of 1974, […]

Request for Comments on Options for Provision of Contraceptives

The DOL, HHS and IRS are requesting ideas for alternatives for providing contraceptives under plans maintained by employers with religious concerns. Document Excerpt This document is a request for information on whether there are alternative ways (other than those offered in current regulations) for eligible organizations that object to providing coverage for contraceptive services on […]

Proposed Changes to DOL Reporting Regulations

The changes are proposed in order to conform to the proposed changes to the Form 5500. Document Excerpt SUMMARY: This document contains proposed amendments to Department of Labor (DOL) regulations relating to annual reporting requirements under Part 1 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended […]

Proposed Revisions to Form 5500

The DOL has issued proposed revisions to the Form 5500. Document Excerpt SUMMARY: This document contains proposed changes to the Form 5500 Annual Return/Report forms, including the Form 5500, Annual Return/Report of Employee Benefit Plan (Form 5500 Annual Return/Report), and the Form 5500–SF, Short Form Annual Return/Report of Small Employee Benefit Plan (Form 5500-SF). The […]

Final Rule on DOL Civil Penalties

The DOL has issued a final regulation on the adjustment of various statutory penalties including under ERISA. Document Excerpt In accordance with the requirements of the Federal Civil Penalties Inflation Adjustment Act of 1990, Pub. L. 104-410, 104 Stat. 890, as amended by the section 31001(s) of the Debt Collection Improvement Act of 1996, Pub. […]

PBGC Guidance

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 […]

PBGC Charts Risk of Insolvency in Upcoming Years for Multiemployer Program Component

The PBGC, in its report to Congress, projects the likelihood of insolvency of its multiemployer plan insurance program over a 20 year period absent a significant premium increase. Document Excerpt Based on these projections, and assuming no changes either in multiemployer plans or in PBGC’s multiemployer program, there is more than a 40 percent likelihood […]

Final 4010 Regulations

The PBGC releases its final Section 4010 annual reporting regulation. Document Excerpt The Pension Benefit Guaranty Corporation (“PBGC”) is amending its regulation on Annual Financial and Actuarial Information Reporting to codify provisions of recent legislation and related guidance that affect reporting under ERISA section 4010. The final rule modifies the reporting waiver under the current […]

Electronic Premium Filing Ready for 2016

The PBGC announces that it is now ready to accept online electronic premium filings for 2016. Document Excerpt 2016 Premium Filings: My PAA is now ready to accept electronic premium filings for plan years beginning in 2016. For additional information, see the following pages: Premium Payment Instructions & Addresses, What’s New in My PAA, Online […]

Articles, White Papers & Other Information

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 https://ecf.dcd.uscourts.gov/cgi-bin/show_public_doc?2014cv1967-73

GAO Report Finds Security and Privacy Enhancements Needed for Federal Exchange

The Government Accounting Office’s report finds that Healthcare.gov needs enhancements to protect security and privacy. Document Excerpt The Centers for Medicare & Medicaid Services (CMS) reported 316 security-related incidents, between October 2013 and March 2015, affecting Healthcare.gov—the web portal for the federal health insurance marketplace—and its supporting systems. According to GAO’s review of CMS records […]

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