Today's Update

IRS Guidance

Update on Weighted Average Interest Rates

Notice 2014-27 provides updated guidance on the weighted average interest rate and corporate bond rates for funding purposes. Document Excerpt Link http://www.irs.gov/pub/irs-drop/n-14-27.pdf

Guidance On Windsor Compliance

The IRS has released guidance on complying with the Supreme Court’s decision in Windsor striking down parts of DOMA including the issue of retroactivity. Document Excerpt The purpose of this notice is to provide guidance on the application (including the retroactive application) of the decision in United States v. Windsor, 570 U.S. ___, 133 S.Ct. [...]

Guidance on Rollover Due Diligence

Rev. Rul. 2014-9 provides guidance on the procedures plan administrators may use to conclude that a proposed rollover constitutes a valid rollover. Document Excerpt In the following situations, may the plan administrator for a plan that is qualified under § 401(a) of the Internal Revenue Code reasonably conclude that a potential rollover contribution is a [...]

Health FSA Carryovers and Eligibility for HSAs

Chief Counsel Memorandum addresses impact of Health FSA carryovers on eligibility for a Health Savings Account. Document Excerpt May an otherwise eligible individual under section 223(c)(1)(A) of the Internal Revenue Code (the Code) contribute to an HSA if the individual participates in a general purpose health FSA solely as the result of a carryover of [...]

Correction Procedures for Improper Health FSA Payments

A new Chief Counsel Memorandum discusses correction procedures for improper Health Flexible Spending Arrangement payments. Document Excerpt This Chief Counsel Advice responds to your request for assistance. This advice may not be used or cited as precedent.   Link http://www.irs.gov/pub/irs-wd/1413006.pdf

Employee Plans News

The most recent edition of the Employee Plans News includes a discussion of the IRS’  new position on the “one rollover per year” restriction, along with announcements allowing for the withdrawal of determination letter applications for Cycle C defined benefit applicants that now wish to adopt a pre-approved plan with cash balance language. Document Excerpt [...]

DOL Guidance

Proposed Amendment to Fee Disclosure Regulations

The proposed amendment would require a guide or in effect a table of contents where fee disclosure is spread out over multiple documents or over long documents. Document Excerpt Today, the Department is proposing a regulatory provision requiring that covered service providers furnish a guide along with the initial disclosures required by the rule, if [...]

Notice of Benefit and Payment Parameters

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 [...]

Nonconforming Health Policies Get An Additional Extension

The Obama administration has extended the ability to purchase or renew policies that do not comply with the Affordable Care Act for an additional period. Document Excerpt CMS indicated in its November 14, 2013 letter that it would consider the impact of this transitional policy in assessing whether to extend it beyond the specified timeframe. [...]

CMS Bulletin on Availability of Retroactive Advance Payments

The Centers for Medicare & Medicaid announces that some may be eligible to receive the tax credits and subsidies retroactively even though they did not timely enroll through the Marketplace. Document Excerpt This guidance is being provided to Marketplaces that, due to technical issues in establishing automated eligibility and enrollment functionality, have had difficulty in [...]

Proposed Regulations on 90 day Waiting Period

Along with the issuance of final regulations the Departments also issued proposed regulations dealing with “orientation periods.” Document Excerpt These proposed regulations would 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, [...]

Finial 90 Day Wait Rules

The Departments issue final rules governing the Affordable Care Act’s maximum 90 day wait rule. Document Excerpt These final regulations implement the 90-day waiting period limitation under section 2708 of the Public Health Service Act, as added by the Patient Protection and Affordable Care Act (Affordable Care Act), as amended, and incorporated into the Employee [...]

PBGC Guidance

Proposed Rollover Rule

The PBGC releases a proposed rule that would amend its valuation and benefit payments regulations to clarify the treatment of benefits resulting from a rollover distribution from a defined contribution plan to a defined benefit plan. Document Excerpt This proposed rule would amend PBGC’s regulations on allocation of assets and benefits payable in terminated single-employer [...]

April Lump Sum Rates

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

Premium Payment Instructions for 2014

The PBGC releases premium payment instructions for 2014. Document Excerpt Link http://www.pbgc.gov/documents/DRAFT-2014-Premium-Payment-Instructions.pdf

Final Regulations Changing Premium Due Date

The PBGC has released its final rule changing and simplifying premium due dates. Document Excerpt This rulemaking is needed to make PBGC’s premium rules more effective and less burdensome. The rule simplifies and streamlines due dates, coordinates the due date for terminating plans with the termination process, makes conforming changes to the variable-rate premium rules, [...]

March Lump Sum Rates

PBGC releases March lump sum interest rates. Document Excerpt The immediate interest rate for valuing lump sum payments for the month of March 2014 is 1.50% and the deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. (The immediate interest rate for February 2014 was 1.75% for lump sum payments; the [...]

Proposed Rule to Multiemployer Regulations

The proposed rule would reduce the number of actuarial valuations required for certain small terminated but not insolvent plans. Further, the proposed changes would shorten the advance notice filing requirements for mergers in certain situations. Document Excerpt PBGC is proposing to amend its multiemployer regulations to make the provision of information to PBGC and plan [...]

Articles, White Papers & Other Information

Notice of Benefit and Payment Parameters

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 [...]

Nonconforming Health Policies Get An Additional Extension

The Obama administration has extended the ability to purchase or renew policies that do not comply with the Affordable Care Act for an additional period. Document Excerpt CMS indicated in its November 14, 2013 letter that it would consider the impact of this transitional policy in assessing whether to extend it beyond the specified timeframe. [...]

CMS Bulletin on Availability of Retroactive Advance Payments

The Centers for Medicare & Medicaid announces that some may be eligible to receive the tax credits and subsidies retroactively even though they did not timely enroll through the Marketplace. Document Excerpt This guidance is being provided to Marketplaces that, due to technical issues in establishing automated eligibility and enrollment functionality, have had difficulty in [...]

Presidential Memorandum on myRA

The President’s memorandum to the Treasury Secretary regarding the President’s new myRA savings accounts discussed in the State of the Union. Document Excerpt All Americans deserve the ability to save for retirement. Since taking office, my Administration has committed to strengthening retirement security for all Americans, including by helping workers find ways to save for [...]

Actuarial Standards Board Standard of Practice 4

The Actuarial Standards Board releases Standard of Practice 4 governing measuring of pension obligations and determining pension plan cost. Document ExcerptDisclosure of Rationale for Changes in Cost or Contribution Allocation Procedure Section 4.1(t) contains new disclosure requirements for a change in the cost or contribution allocation procedure. Assessment of Contribution Allocation Procedure or Funding Policy [...]

Actuarial Standards Board Standard Of Practice 27

The Actuarial Standards Board releases Standards of Practice 27 regarding the selection of economic assumptions. Document Excerpt This version clarifies that economic assumptions can be based either on the actuary’s estimate of future experience or on the actuary’s observations of the estimates inherent in market data, depending upon the purpose of the measurement.  Link http://www.actuarialstandardsboard.org/pdf/asops/asop027_172.pdf

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