Headlines about "Ret plans - admin"
Gathered from the web by the editors at BenefitsLink.com.
[Official Guidance] Text of IRS Notice 2008-98: Extension of Effective Date of Normal Retirement Age Regulations for Governmental Plans (PDF)
2 pages. Excerpt: "The [IRS intends] to extend the date by which a governmental plan must comply with final regulations on distributions from a pension plan upon attainment of normal retirement age, which were published in [2007] ('the 2007 final regulations'). Under the extension, the 2007 final regulations will be effective for a governmental plan (as defined in § 414(d) of the Internal Revenue Code) for plan years beginning on or after January 1, 2011. This notice does not change the effective date of the 2007 final regulations for a plan that is not a governmental plan or modify the relief previously provided in Notice 2007-69 . . . ." (Internal Revenue Service)
[Guidance Overview] Personal Liability Claims Based Upon Unpaid Plan Contributions Advance
Excerpt: "In difficult economic times, a case like Calemine resonates more than it would otherwise. Here, the plaintiffs obtained a judgment, but the defendant employers declared bankruptcy. Unpaid plan contributions lay at the center of the dispute. This recent opinion illustrates that judgments against the bankrupt employer may not be worthless after all." (Health Plan Law blog by Attorney Roy F. Harmon III)
[Official Guidance] October 2008 Pension Funding Segment Rates
Generally for plan years beginning after 2007, the rates in the tables . . . apply for minimum funding requirements under section 430 of the Code. (Internal Revenue Service)
[Official Guidance] IRS 30 Year Treasury Securities Rate Updated for September 2008
30 Year Treasury Securities Rate for September 2008: 4.27% (Internal Revenue Service)
[Official Guidance] IRS Composite Corporate Bond Rate Table Updated for October 2008
Corporate Bond Weighted Average Interest Rate = 6.14 for October 2008 (Internal Revenue Service)
Getting a Tax Credit for Your Small Business Retirement Plan
Excerpt: "This tax credit is in addition to the tax deduction you may receive for the contributions to the plan. The tax credit may be claimed for a maximum period of three years for retirement plans established for the 2002 plan year or later." (Slate)
[Guidance Overview] High Court to Hear Arguments on ERISA Beneficiary Designation
Excerpt: "The U.S. Supreme Court will hear arguments Oct. 7 regarding whether a qualified domestic relations order (QDRO) under the Employee Retirement Income Security Act trumps a woman's voluntary waiver of her ex-husband's pension benefits, an issue that has divided federal appeals courts and left divorce lawyers unsure how to advise clients." (Texas Lawyer)
DOL Sues Firm for Abandoning Plan Without Distributing Assets
Excerpt: "The U.S. Department of Labor sued the now-defunct People Unlimited Consulting Inc. and two of its executives for violating the Employee Retirement Income Security Act (ERISA). A DoL announcement said the executives of the Charlotte, North Carolina-based employee staffing company failed to distribute $115,589 in 401(k) assets to eligible plan participants. The company abandoned the plan, and plan participants were unable to gain access to their 401(k) funds." (planadvisor)
Web Site Opens for Enrolled Retirement Plan Agent ('ERPA') Program; Licensing Information Brochure, Study Guide Coming Soon
Potential Enrolled Retirement Plan Agents can sign up to receive email updates with news and information about the ERPA program: see www.erpaexam.org -- Soon, that site will have information about the licensing process, an ERPA Study Guide and reference materials. Registration begins October 23; the first tests are planned for January 6 through February 17, 2009. The site includes answers to 15 frequently asked questions (FAQs). Excerpt: "Who should become an ERPA? Retirement plan professionals needing to represent before the Internal Revenue Service with respect to IRS forms under the 5300 and 5500 series. (And who are not otherwise included in a category of individuals allowed to practice before the IRS)." (American Institute of Retirement Education (AIRE))
[Official Guidance] Text of IRS Notice 2008-93: Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates (PDF)
4 pages. Excerpt: "This notice provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008. It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), the 24-month average segment rates, and the funding transitional segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007." (Internal Revenue Service)
[Official Guidance] Text of Proposed IRS Regs: Notice to Participant of Consequences of Failure to Elect to Defer Receipt of Retirement Plan Benefit; Expansion of Periods for Other Notices and Elections (PDF)
18 pages. Excerpt: "These proposed regulations would provide that the notice required by section 411(a)(11) advising a participant of the right, if any, to defer receipt of a distribution must also inform the participant of the consequences of failing to defer such receipt. The proposed regulations would also provide guidance on the relevant information that must be provided to a participant in order to satisfy the requirement that the participant be notified of the consequences of failing to defer. . . . These regulations are proposed to become effective for notices provided (and election periods beginning) on or after the first day of the first plan year beginning on or after January 1, 2010. However, in no event will the regulations become effective for notices provided (and election periods beginning) earlier than the first day of the first plan year beginning 90 days after publication of final regulations in the Federal Register." (Internal Revenue Service)
[Guidance Overview] Analysis of Oral Argument Transcript in ERISA DuPont Case
Excerpt: "The Supreme Court heard oral argument in the case of Kennedy v. Plan Administrator for DuPont Savings and Investment Plan this afternoon. The case concerns whether a divorcing spouse may waive her rights to spousal pensions benefits without going through the qualified domestic relations order (QDRO) process set out in the exceptions to ERISA's anti-alienation rule. What follows is analysis of that oral argument transcript based on my reading of the oral argument transcript in DuPont . . . ." (Workplace Prof Blog)
[Opinion] Breach of Fiduciary Duty Claims
Excerpt: "I talked about a case last week that addressed the damages aspect of making out a breach of fiduciary duty claim related to stock drop type issues, and pointed out the broad, ambiguous and easy to manipulate nature of a damages claim in that scenario. Another case last week, also out of the United States District Court for the District of Massachusetts, points out that other aspects of making out a breach of fiduciary duty case on a class action basis based on the administration of 401(k) plans provide a real check on such cases. The issue in that case? Namely that not everyone involved in operating a 401(k) plan is a fiduciary, and that while deep pockets involved in allegedly inappropriate behavior with regard to such a plan may make tempting targets, they cannot be sued successfully for breach of fiduciary duty if the prerequisite of having acted as a fiduciary is not satisfied." (Stephen Rosenberg of The McCormack Firm, LLC)
[Official Guidance] Text of EBSA Amendment to ERISA Prohibited Transaction Exemption for Services Provided in Connection with Termination of Abandoned Individual Account Pension Plans (PDF)
3 pages. Excerpt: "This document amends PTE 2006–06 . . . , a prohibited transaction class exemption issued under [ERISA]. Among other things, PTE 2006–06 permits a 'qualified termination administrator' (QTA) of an individual account plan that has been abandoned by its sponsoring employer to select itself to provide services to the plan in connection with the plan's termination, and to pay itself fees for those services. In response to changes to the Internal Revenue Code of 1986 (the Code) enacted as part of the Pension Protection Act (PPA) of 2006, PTE 2006–06 is amended to require, as a condition of relief under the exemption, that benefits for a missing, designated nonspouse beneficiary be directly rolled over into an inherited individual retirement plan that fully complies with Code requirements." (Employee Benefits Security Administration, U.S. Department of Labor)
[Official Guidance] Text of Amendment to Final EBSA Regs: Safe Harbor for Distributions from Terminated Retirement Plans, Including Orphan Plans (PDF)
9 pages. Excerpt: "The [DOL] is amending these regulations to reflect changes enacted as part of the Pension Protection Act of 2006 to the Internal Revenue Code of 1986 . . . under which a distribution of a deceased plan participant's benefit from an eligible retirement plan may be directly transferred to an individual retirement plan established on behalf of the designated nonspouse beneficiary of such participant. Specifically, the amended regulations require as a condition of relief under the fiduciary safe harbor that benefits for a missing, designated nonspouse beneficiary be directly rolled over to an individual retirement plan that fully complies with Code requirements. . . . This final rule is effective November 6, 2008." (Employee Benefits Security Administration, U.S. Department of Labor)
[Guidance Overview] Plan Expenses Attributable to Separated Vested Participants
Excerpt: "[T]he DOL now permits employers to allocate the administrative expenses associated with . . . former employee accounts to such accounts . . . . However, if employers want to take advantage of this rule, their plan documents will have to be amended accordingly. In addition, employers should make sure that the Summary Plan Description and any communication documents sent to participants and former participants are updated to reflect the use of the rule." (Attorney B. Janell Grenier via Benefitsblog.com)
[Guidance Overview] Compliance with Notices for Participants (PDF)
4 pages. Excerpt: "Several defined contribution plan designs and provisions require plan sponsors to provide annual notices to participants. As the 2008 plan year is nearing its end, it is important to look ahead at the notices that may need to be provided before the start of the 2009 plan year. This publication provides a summary of those notice requirements, including timing, contents, method of delivery . . . ." (Prudential Retirement)
[Guidance Overview] IRS 2008-2009 Priorities for Issuing Regulations and Other Guidance Affecting 401(k) Plans
Excerpt: "EBIA Comment: This Priority Guidance Plan covers the twelve-month period ending June 30, 2009, during which the Treasury Department and the IRS appear to have an ambitious plan for issuing 401(k) guidance. Included in this list are a number of anticipated final regulations and other guidance interpreting PPA provisions (e.g., the regulations on ACAs and employer security diversification rights). We were also pleased to see that the list includes much needed revisions to the model 402(f) notice." (Employee Benefits Institute of America)
DOL Issues Final Rules on Missing Benefits and Other PPA Provisions
Excerpt: "The U.S. Department of Labor (DoL) has announced final rules under the Pension Protection Act of 2006 (PPA) relating to distribution of 401(k) benefits for missing nonspouse beneficiaries in terminated plans, selection of annuity providers, and cross trading of securities by plans governed by the Employee Retirement Income Security Act (ERISA)." (PLANSPONSOR.com; free registration required)
Listing of IRS Published Guidance for January - September 2008
The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements. (Internal Revenue Service)
Appendix to 'Who Gets Retirement Plans and Why' (PDF)
12 pages. Excerpt: "The September 2008 issue of Perspective examines the various factors that lead some workers to favor compensation that includes both cash and retirement benefits more than cash alone, and the factors that lead some employers to choose to offer compensation that includes retirement benefits. This appendix provides supplementary tables with additional detail for the September 2008 Perspective." (Investment Company Institute)
Who Is Offered Retirement Plans at Work and Why (PDF)
36 pages. Excerpt: "As the retirement industry and policymakers try to increase coverage, it is important to understand the motives at play and why more employers do not currently sponsor plans. To that end, it is necessary to understand which workers currently have access to and participate in employer-sponsored retirement plans, and why certain employees desire and certain employers offer compensation in the form of retirement benefits. This paper examines the various factors that lead some workers to favor compensation that includes both cash compensation and retirement benefits over cash alone, and it discusses the factors that lead some employers to offer retirement benefits." (Investment Company Institute)
[Guidance Overview] Changes to Puerto Rico Plans Impact Annual Limits and Transfers from Dual-Qualified Plans (PDF)
3 pages. Excerpt: "Recently, the Puerto Rico legislature passed a new law increasing the pre-tax contribution limits for Puerto Rico qualified plans. This change affects both dual-qualified and solely qualified plans and increases the limit over the next five years. In addition, a recent revenue ruling issued by the Internal Revenue Service (IRS) changes the U.S. tax treatment for dual-qualified plans that spin off assets into solely qualified plans." (The Vanguard Group)
A Former WaMu Employee Asks, 'What Will Happen to My WaMu Pension Plan?'
Excerpt: "The government seized Washington Mutual's banking operations and sold parts of the company to JPMorgan Chase on September 25. But the jurisdiction of employee pension benefits was a point of contention during a tumultuous week that left current employees and retirees nervously awaiting an announcement that could affect their financial future." (U.S. News & World Report)
High Court to Hear Arguments on ERISA Beneficiary Designation
Excerpt: "The U.S. Supreme Court will hear arguments Tuesday regarding whether a qualified domestic relations order (QDRO) under the Employee Retirement Income Security Act trumps a woman's voluntary waiver of her ex-husband's pension benefits, an issue that has divided federal appeals courts and left divorce lawyers unsure how to advise clients." (Law.com)
Supreme Court Will Officially Begin the October 2008 Term This Week
Excerpt: "On Tuesday, the Court will hear argument in: . . . Kennedy v. Plan Adm. for Dupont Savings (07-636) [http://www.scotuswiki.com/index.php?title=Kennedy_v._Plan_Adm._for_Dupont_Savings], on whether a specific ERISA provision is the only way a divorcing spouse can waive her right to receive her ex-husband's pension benefits under the Act." (Supreme Court of the United States Blog)
Significant Business Cases Slated for Decision in the Supreme Court Term (PDF)
See page 2 of 4 pages. Excerpt: "Employment Law: The Court has granted one Title VII case and two ERISA cases. . . . AT&T Corp. v. Hulteen, No. 07-543, presents the question of whether a company pension plan may lawfully deny service credit for pregnancy leaves taken prior to the passage of the 1978 Pregnancy Discrimination Act ('PDA') [and] Kennedy v. Plan Administrator for Dupont Savings and Investment Plan, No. 07-636, will determine what methods are valid under ERISA to waive a divorcing spouse's claims to pension benefits." (Paul, Hastings, Janofsky & Walker LLP)
Ohio Business Owner Enters Plea on 401(k) Annual Reports Charge
Excerpt: "The owner of a Columbus, Ohio, company has pleaded guilty to not filing financial reports for the company's 401(k) plan as required by the Employee Retirement Income Security Act (ERISA). A news release from the U.S. Labor Department's Employee Benefits Security Administration (EBSA) said Jeffrey Miller of Ostrander, Ohio, pleaded guilty to one felony count that charged him with the annual reports violation in connection with the Laser Saver 401(k) employee pension benefit plan. [H]e agreed to return to the retirement plan . . . all contributions that he withheld from Laser Saver employees' paychecks since August 2003 but failed to deposit into the plan." (planadvisor)
[Official Guidance] Text of IRS Notice 2008-78 (Includes DOL and PBGC Guidance): Funding and Other Relief for Retirement Plans Affected by Hurricane Ike (PDF)
7 pages. (Internal Revenue Service)
Defined Contribution Pension Plans in the Public Sector: A Benchmark Analysis
Excerpt: "This chapter assesses best practice benchmarks for the design of defined contribution plans in the public sector, where such plans are the primary, or core, employment-based retirement benefit. These benchmarks rely on the notion that providing an adequate and secure retirement income for participants is the primary plan objective." (Pension Research Council; registration required to download fulltext of paper)
Administrative Costs of State Defined Benefit and Defined Contribution Systems
Excerpt: "This chapter compares the administrative costs of public sector defined benefit and defined contribution systems offered by the Federal government and many states. Administrative expenses are presented as percentages of both income and assets, and we discuss how administrative expenses might enter into the decision by a public sector employer as to whether to establish a defined contribution plan." (Pension Research Council; registration required to download fulltext of paper)
New York State Comptroller Takes Aim at Pension Cheats with New Rules and a Compliance Unit
Excerpt: "The new rules require local governments statewide to pass resolutions establishing a minimum workday of no less than six hours. The regulations also call for appointed and elected officials and professionals contracted to perform certain services to keep a 90-day activity log and make public the maximum number of days reported to the system each month." (Newsday)
[Opinion] 'We're from the Federal government, and we're here to help.' (PDF)
Page 2 of 4 pages. Excerpt: "The IRS is concerned that it has not dedicated the time and effort to the governmental plans area that our size and importance warrant. It wants to make amends by ensuring that governmental plans have the tools they need to comply with the law, and that worker retirement benefits are protected. The agency is worried, however, that it doesn't know enough about public plans to draw any conclusions as to plan concerns or needs. It, therefore, has decided to conduct a survey . . . ." (National Council on Teacher Retirement)
Employee Benefit Plans – Why Manage Globally?
Excerpt: "Multinational companies often struggle to find the time to effectively manage the plethora of insured employee benefit plans that they have around the world. This article argues for taking a more centralized approach to the management of insured employee benefits and better leveraging the network of brokers and consultants through the consolidation of providers." (Mercer LLC)
DOL's New Rule Governing Information About Union Trusts
Excerpt: "The U.S. Department of Labor's Office of Labor-Management Standards (OLMS) today posted at www.olms.dol.gov a final rule that enhances financial reporting and provides union members with more complete information about finances held in union trusts. The final rule, issued under the authority of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA), further implements the LMRDA goal of securing the right of labor union members to have meaningful information about union finances and expenditures." (Workplace Prof Blog)
[Guidance Overview] How to Exclude 'Independent Contractors' from Benefit Plans
Excerpt: "To the troublesome question of employee classification, the drafter of the plans at issue in Bendsen had a simple solution. Just say what is intended in the plan document. The workers in this case argued that, despite characterization as 'independent contractors' in certain contractual agreements, they were actually common law employees. As such, they advanced several claims against the defendant, including claims for benefits." (Health Plan Law blog by Attorney Roy F. Harmon III)
DOL's New Online Tools Enhance Financial Transparency
Excerpt: "The Department of Labor just made it easier for workers and plan administrators to access actuarial data on pension plans. It created an online feature titled 'ERISA Public Disclosure System.' The program allows users to search for plan information by plan name, employer identification number or date. Individuals can review actuarial numbers to determine whether a plan is adequately funded to pay guaranteed benefits and is complying with the funding rules under federal pension laws." (Employee Benefit News; free registration required)
Connecticut PEO Legislation Requires Licensing
Excerpt: "Legislation signed into law by Connecticut Governor Jodi Rell includes a licensing program that provides employer status to the professional employer organizations (PEOs) delivering human resource management, employee benefits, payroll and workers' compensation to thousands of small business owners in Connecticut." (PLANSPONSOR.com; free registration required)
[Official Guidance] Text of IRS Notice 2008-85: Updated Static Mortality Tables for Years 2009 Through 2013 (PDF)
19 pages. Excerpt: "These tables apply for purposes of calculating the funding target and other items for valuation dates occurring during calendar years 2009 through 2013. This notice also includes a modified 'unisex' version of the mortality tables for use in determining minimum present value under § 417(e)(3) of the Code and § 205(g)(3) of ERISA for distributions with annuity starting dates that occur during stability periods beginning in calendar years 2009 through 2013." (Internal Revenue Service)
[Official Guidance] Text of Rev. Proc. 2008-62: Use of DB Plan-Specific Substitute Mortality Tables (PDF)
27 pages. Modifies Rev. Proc. 2007-37; incorporates changes from the final regulations under Code section 430. Requests for approval filed on or after December 1, 2008 must comply with the new procedures. Earlier-filed requests may comply with the new procedures or alternatively may satisfy therequirements of the proposed regulations and Rev. Proc. 2007-37. (Internal Revenue Service)
[Guidance Overview] Recently Revised IRS Correction Program Offers Retirement Plan Sponsors Incentives To Correct Plan Errors Voluntarily
Excerpt: "EPCRS is designed to offer plan sponsors incentives to identify and correct plan errors voluntarily. Correcting errors in accordance with EPCRS can help a plan sponsor avoid the loss of the tax-favored status of a plan and the imposition of significant monetary penalties that might otherwise be imposed if the error was discovered by the IRS on audit. There are three distinct components of EPCRS: (i) the Self-Correction Program ('SCP'); (ii) the Voluntary Correction Program ('VCP'); and (iii) the Audit Closing Agreement Program ('Audit CAP')." (Bond, Schoeneck & King, PLLC)
[Guidance Overview] IRS Update and Expansion of Its Employee Plans Compliance Resolution System
Excerpt: "This Update provides only a general summary of the Employee Plans Compliance Resolution System. You can read the full text of Revenue Procedure 2008-50 at http://www.irs.gov/pub/irs-drop/rp-08-50.pdf." (Perkins Coie LLP)
[Guidance Overview] DC Plans, Distributed Annuities, Spousal Consent and QJSAs
Excerpt: "One of the most nagging issues related to distributing annuities from defined contribution plans is how and when to apply the spousal consent and qualified joint and survivor annuity ('QJSA') rules to distributions." (Baker & Daniels)
[Guidance Overview] Eleventh Circuit Eliminates 'Heightened' Standard of Review for Benefit Claim Decisions (PDF)
4 pages. Excerpt: "The Eleventh Circuit has held that the 'heightened' arbitrary and capricious standard of review previously used by the court in cases where a conflicted plan administrator decided a claim for benefits -- and its accompanying burden-shifting analysis -- does not survive the Supreme Court's recent decision in Metropolitan Life Ins. Co. v. Glenn, 128 S. Ct. 2343 (2008). Instead, where a plan grants the fiduciary discretionary authority to determine eligibility for benefits, a decision denying plan benefits should be reviewed under an arbitrary and capricious standard, with the reviewing court considering any conflict as 'a factor' in its decision." (Alston & Bird LLP)
[Opinion] 403(b) Rollovers vs. 403(b) Exchanges
Excerpt: "[W]hat are the chances the IRS would treat a rollover to a non-employer related 403(b) as a contract exchange rather than a rollover, and require an information sharing agreement? There is a tempting easy answer: a rollover is a rollover, and no information sharing agreement is required. But then you start thinking about it some more, and find that there are a number of 'hidden' issues. Let's work through what would happen here." (Baker & Daniels)
[Guidance Overview] Webcast on Employee Plans Compliance Resolution System - Revenue Procedure 2008-50 (PDF)
46 pages. Powerpoint presentation. (Morgan, Lewis & Bockius LLP)
[Guidance Overview] Administrative Law Analogies After MetLife v. Glenn
Excerpt: "Thus far, . . . administrative law analogies have all been focused on efficiency goals, such as, for example, the exhaustion of adminstrative remedies requirement. After Glenn, one might expect to see other applications where the concern is the integrity of the administrative record." (Health Plan Law blog by Attorney Roy F. Harmon III)
Employers Balk at Proposed International Pension Accounting Rules, Survey Finds
Excerpt: "[A] recent survey by Watson Wyatt Worldwide revealed that many companies are not familiar with the IASB's proposed changes to IAS19, its standard for accounting for employee benefits, and the majority of those that are do not support its proposal. However, employers do believe that changes to current pension accounting standards are necessary." (Wolters Kluwer)
Texas and Louisiana Plans Get More Form 5500 Filing Time
Excerpt: "Federal regulators are giving plan sponsors in states along the Gulf of Mexico hit hard by Hurricane Ike more time to file their annual Form 5500 report. The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) announced a new January 5, 2009, deadline for: plans in Texas required to file their Form 5500 between September 7, 2008 and January 5, 2009; and plans in Louisiana due between September 11, 2008, and January 5, 2009." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Do You Have a Pension Funding Policy . . . and Is It Working?
Excerpt: "In this Perspective we look at why plan sponsors must take a more strategic and proactive approach to pension funding and why contributing just the minimum may not be a viable funding policy." (Mercer LLC)
[Guidance Overview] Participant Contribution Timing Rules for Small Plans and Trustee Role for Late Transmittal of Contributions (PDF)
2 pages. Excerpt: "The safe harbor rules are proposed to become effective on the date the final regulations are published. However, in the interim, small plans may rely on the safe harbor rule and will be treated as being in compliance with the general contribution timing rules if employee contributions and loan repayments are transmitted to the plan within the seven-day safe harbor period." (Prudential Retirement)
Pension Plan Actuarial Information Search
Excerpt: "The U.S. Department of Labor's Employee Benefits Security Administration [has posted] on its Web site actuarial information of pension plans filed with the Form 5500 annual reports. That site provides 'user friendly ways' for workers and plan officials to search for plan information by such categories as plan name, employer identification number or date, according to the announcement. The site is located at http://www.dol.gov/ebsa/actuarialsearch.html[.]" (PLANSPONSOR.com; free registration required)
DOL Tool Makes It Easier to Pay Fines
Excerpt: "The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has unveiled new online tools for employers and for workers. Plan sponsors and plan administrators will now find it easier to pay online civil penalties for delinquent filings of annual reports under the agency's Delinquent Filer Voluntary Compliance Program (DFVCP). . . . Employers and plan administrators can access the new feature that allows them to electronically pay civil penalties at http://www.dol.gov/ebsa/calculator/dfvcpmain.html." (PLANSPONSOR.com; free registration required)
[Official Guidance] Correcting ERISA 401(k) Plan Failures When Employee Contributions Are Not Remitted in a Timely Manner
Excerpt: "If contributions are not remitted in a timely manner, the failure could be held to be a prohibited transaction, a fiduciary breach or both. There are significant Department of Labor (DOL) penalties for both of these violations. Additionally, if there is a breach of fiduciary duty, then the plan's fiduciary could be held personally liable." (Aiken & Aiken)
International and Cross-Border Retirement and Fringe Benefit Plans: IRS Advisory Committee Survey Seeks Opinions of Employers, Administrators, Practitioners, Consultants
2-page Word survey questionnaire; September 30 deadline. Excerpt: The IRS Advisory Committee on Tax Exempt and Government Entities (TE/GE) (the 'ACT') is undertaking a study to identify international and cross-border activities, issues, challenges, impediments and barriers in connection with the design, coverage, portability, and tax administration of US employee retirement (qualified and non-qualified) and fringe benefit plans. (IRS Advisory Committee on Tax Exempt and Government Entities)
International and Cross-Border Retirement and Fringe Benefit Plans: IRS Advisory Committee Survey Seeks Opinions of Employers, Administrators, Practitioners, Consultants
2-page Word survey questionnaire; September 30 deadline. Excerpt: The IRS Advisory Committee on Tax Exempt and Government Entities (TE/GE) (the 'ACT') is undertaking a study to identify international and cross-border activities, issues, challenges, impediments and barriers in connection with the design, coverage, portability, and tax administration of US employee retirement (qualified and non-qualified) and fringe benefit plans. (IRS Advisory Committee on Tax Exempt and Government Entities)
11th Circuit Backtracks on Benefits Denial Review Standard
Excerpt: "Falling in line with a U.S. Supreme Court ruling earlier this year, the 11th U.S. Circuit Court of Appeals reversed its earlier decision relating to how employee benefit plan denials should be judged. The appellate court's latest holding deals with instances when the benefits denials were made when plan administrators operate under a conflict of interest and was driven by the Supreme Court's decision in Metropolitan Life Insurance Co. v. Glenn . . . ." (PLANSPONSOR.com; free registration required)
Eleventh Circuit Panel Holds That Glenn Overrules Prior Precedent
Excerpt: "According to the [Eleventh Circuit opinion in Doyle v. Liberty Life], 'Glenn implicitly overrules and conflicts with our precedent requiring courts to review under the heightened standard . . ' The panel substituted a new opinion for its prior opinion in the case, holding that 'heightened scrutiny' and burdenshifting requirements no longer apply. This note is cross-posted to ERISABoard.com where the opinion is attached." (Health Plan Law blog by Attorney Roy F. Harmon III)
Federal Pensions: Judicial Survivors' Annuities System Costs (PDF)
21 pages. Excerpt: "Pursuant to the Federal Courts Administration Act of 1992 (Pub. L. No. 102-572), GAO is required to review JSAS costs every 3 years and determine whether the judges' contributions fund at least 50 percent of the plan's costs during the 3-year period. If the contributions fund less than 50 percent of these costs, GAO is to determine what adjustments to the contribution rates would be needed to achieve the 50 percent ratio." (U.S. Government Accountability Office)
[Official Guidance] Text of IRS 'Employee Plans News': Relief for September 30 AFTAP Actuarial Certification for DB Plans (PDF)
Excerpt: "Sponsors of defined benefit pension plans that are subject to Code §436 and have calendar plan years are reminded of the importance of having an actuarial certification of the plan's adjusted funded target attainment percentage (AFTAP) for 2008 before October 1, 2008. . . . [A]ctuaries for small plans with end-of-year valuation dates will have difficulty in timely certifying the AFTAP for the plan year that begins in 2008. In such cases, the Service will not challenge an actuary's certification of the AFTAP for the plan year beginning in 2008 merely because the certification was based on a date other than the end-of-year valuation date under §430 for that plan year, provided that the AFTAP is subsequently certified based upon the end-of-year valuation date and the subsequent certification does not result in a material change as defined under the proposed regulations." (Internal Revenue Service)
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