Headlines about "Ret plans - admin"
Gathered from the web by the editors at BenefitsLink.com.
[Official Guidance] Text of IRS Notice 2009-93 Allowing Various Information Statements to Use a Truncated Social Secuity Number (PDF)
5 pages. Identity theft is becoming such a large problem that the IRS is allowing the use of truncated (partial) Social Security Numbers on the copies of various statements that go to retirement plan and IRA participants for 2009 and 2010. Paper payee statements for forms in the 1098, 1099 and 5498 series for 2009 and 2010 are eligible for the program. (Internal Revenue Service)
[Guidance Overview] Text of IRS Retirement News for Employers, Fall 2009 (PDF)
13 pages. This edition includes the following titles: Roth & Roll: 2010 Roth IRAs & Rollovers; 5500 for 2009 and Later Required to be Filed Electronically; Establishing a SEP or SIMPLE IRA Plan; IRA Investments; New Web Tool for SARSEP Plans; We're Glad You Asked!; New on the Web; Employee Plans Published Guidance; Desk Side Chat?With Monika Templeman: The Importance of Internal Controls and Plan Self-Correction; DOL News; Mark Your Calendar; Timing is Everything. (Internal Revenue Service)
Journal of Pension Economics and Finance enters New Phase
Excerpt: "The Journal of Pension Economics and Finance (JPEF), the only academic journal focusing on the economics and finance of pensions and retirement income programs, announces a new editorial structure and a broadening of its mission effective January 2010. Since 2002, the JPEF has provided an invaluable and influential forum for original research and international policy debate in the pensions area. Demographic aging and tumultuous capital markets are challenging the future of retirement around the globe. The JPEF will lead the way in exploring what these factors imply for retirement security and pension sustainability, and in demonstrating which new models will ensure resiliency in retirement systems. JPEF publishes original research papers; it also offers an Issues & Policy section with reviews of the state of debate on pension policies around the world. In addition, the journal includes reviews on publications of key interest to its readers. JPEF is co-sponsored by the International Organization of Pension Supervisors (IOPS) and the OECD." (Pension Research Council; registration required to download fulltext of paper)
QDROs Can Be Particularly Problematic When Plan Assets Contain Employer Securities
Excerpt: "Divorce is messy. Even once the settlement agreement has been reached, signed and filed with the court, our client still faces one remaining hurdle; the dreaded Qualified Domestic Relations Order (QDRO)." (Morningstar)
[Guidance Overview] November 30, 2009: Deadline for Plan Sponsors to Finalize 2009 Required Minimum Distribution Procedures (PDF)
4 pages. Excerpt: "Under WRERA, if all or a portion of a distribution during 2009 is eligible for a rollover solely because it is no longer an RMD, that portion of the distribution is not treated as an eligible rollover distribution for purposes of the direct rollover rules, including the mandatory 20% income tax withholding and 402(f) notice requirements. However, if a defined contribution plan distributes an amount in 2009 that would have been an RMD in whole or in part but for WRERA, a plan may, but is not required to, offer the participant a direct rollover for the RMD portion. If the plan does not offer a direct rollover of the RMD portion of a 2009 distribution, or if the plan does offer a direct rollover but the recipient receives it in cash, the plan administrator must apply 10% withholding to that portion of the distribution (and give the participant an option to elect no withholding), rather than the mandatory 20% withholding. Additionally, the notice of an eligible rollover distribution does not need to be provided if the distribution is limited to the amount that would have been the 2009 RMD." (Morgan, Lewis & Bockius LLP)
[Guidance Overview] PPA & WRERA Qualified Plan Guidance: Action Items for 2009 (PDF)
6 pages. Excerpt: "Qualified plan amendments or action items required in 2009 relating to the Pension Protection Act of 2006 (PPA) and Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), including; (i) WRERA suspension of 2009 required minimum distributions, with operational compliance required by December 1, 2009, as well as model amendments in Notice 2009-82 which must be adopted by end of 2011 play year; (ii) revised model notices for eligible rollover distributions under Notice 2009-68, which must be put in place by end of 2009 plan year; (iii) sample amendments to add automatic enrollment to plans in Notice 2009-65 needs to be adopted by end of 2009 plan year; (iv) QACA and EACA notices, and qualified default investment alternative notice required at least 30 days in advance of plan year; (v) PPA amendments required by end of 2009 plan year. Also, other recent PPA qualified plan guidance include: (i) rollovers from employer plan or regular IRAs to Roth IRAs have no income limit in 2010, and (ii) contribution of paid time off at end of plan year or on termination of employment permitted." (Charles C. Shulman, Esq.)
[Guidance Overview] Massachusetts High Court Rules That ERISA Preempts a Claim Based on Unjust Enrichment
Excerpt: "In Hitachi High Technologies America, Inc. v. Bowler, SJC-10386 (Supreme Judicial Court of Massachusetts 2009), the Court faced the question of whether ERISA preempts a State law action brought by a retirement plan fiduciary to recover money mistakenly paid to a plan participant. In this case, the plaintiff, Hitachi High Technologies America, Inc. (Hitachi), filed an action for unjust enrichment in the Mass. Superior Court against its former employee, the defendant Kevin Bowler, for his alleged failure to reimburse $29,315.75, with interest, in retirement benefits that Hitachi had overpaid to Bowler due to an accounting error. The lower court dismissed the case on the grounds that it lacked subject matter jurisdiction." (Passion for Subro)
Governance and Compliance Advisory Update: November 2009
Excerpt: "October saw significant activity with respect to retirement, executive compensation, welfare and other benefit legislation, regulations and rulings." (Towers Perrin)
[Guidance Overview] Upcoming Compliance Deadlines for 403(b) Plans (PDF)
2 pages. Excerpt: "This bulletin is a brief reminder and overview of important new requirements for 2009 for 403(b) plans and certain applicable deadlines for a plan operating on a calendar year. Note that different effective dates may apply to certain types of plans and special exceptions apply to plans covering collectively bargained employees or ministers and to governmental and church plans." (Thompson Hine LLP)
[Guidance Overview] FTC Delay of Its Enforcement of Identity Theft Red Flags Rule Until June 2010
Excerpt: "EBIA Comment: The Rule's broad definitions have raised questions about whether and how the Rule applies to various employee benefit programs. This additional delay will be helpful for employee benefit plans that have been attempting to determine what portion, if any, of a benefit plan's activities might be subject to the Rule. While recent FTC guidance clarified that a 401(k) plan's loan program would not need to be included in a written identity theft prevention program . . ., further clarification would be helpful about the Rule's application to other benefits, such as DCAPs, HRAs, HSAs, and qualified transportation plan debit card programs." (Employee Benefits Institute of America)
[Guidance Overview] Notices to DC Plan Participants Due by December 1
Excerpt: "In recent years, Congress has created a slew of new notices that must be given to all participants in defined contribution plans at least 30 days before the beginning of each plan year. As December 1, 2009, approaches, each sponsor of a defined contribution plan that uses a calendar plan year should make sure that it is prepared to send participants each of the notices that applies to its particular type of plan. In addition, December 1 is the day by which defined contribution plans must adopt procedures to implement the waiver of the 2009 required minimum distributions for terminated employees over the age of 70?." (Seyfarth Shaw LLP)
[Guidance Overview] 2008 Form 5500 Information on Defined Benefit Pension Plans Must Be Posted on Company Intranet
Excerpt: "Employers with defined benefit pension plans that have recently filed a 2008 Form 5500 should address the [disclosure] issues immediately to determine if the posting obligation applies to them, and if so, how to best comply with this new disclosure obligation. At a minimum, employers with an intranet site must make the required information available on the site as soon as possible in order to be in compliance." (Pillsbury Winthrop Shaw Pittman LLP)
[Guidance Overview] 2010 Retirement Plan Regulatory Limits Poster and DC Compliance Calendar
Excerpt: "This poster, compliments of Vanguard Strategic Retirement Consulting (SRC), is a convenient way to remind you of important regulatory limits and dates for retirement plans. Note that there are no increases in regulatory limits for 2010. SRC also has created a calendar that lists recurring compliance and notice requirements for qualified defined contribution plans. You'll want to keep these valuable reference tools on hand in the upcoming year." (The Vanguard Group, Inc.)
[Guidance Overview] 2009 End of Year Retirement Plan Sponsor 'To Do' Lists
Excerpt: "In this issue we provide seven 'to do' lists that may require you to take action before the end of 2009 or in early 2010. Many of the action items are a result of the Pension Protection Act of 2006 (the 'PPA') and may require plan amendments." (Snell & Wilmer LLP)
[Guidance Overview] 403(b) Plan Compliance Checklist
2 pages. Excerpt: "Plan compliance is a key to managing a successful retirement program for the benefit of your organization and its employees. Complete this checklist to help determine if your ERISA-covered 403(b) plan is in compliance, and where your exposure may lie in the event of an audit." (Diversified Investment Advisors, Inc.)
Employee Benefits 2009 Year-End Checklist, Year in Review, and Planning Ahead for 2010 (PDF)
9 pages. Excerpt: "In addition to the items on the legislative agenda, both the Department of Labor and the Internal Revenue Service have important guidance projects still awaiting release, some or all of which may be issued in 2010. Employers should stay tuned for news about the following items in particular: Pending Department of Labor guidance requiring enhanced disclosure to plan participants about benefit plan administrative costs and investment expenses, and enhanced disclosureobligations from plan service providers to plan fiduciaries. Department of Labor regulations governing the provision of investment advice to retirement plan participants. Congress is also considering legislation in this regard. IRS regulations governing cafeteria plans and flexible spending accounts, particularly with respect to compliance with non-discrimination rules." (Harter Secrest & Emery LLP)
[Guidance Overview] EFAST2 PIN for Form 5500 Electronic Filing Is Plan Administrator's Signature and Is Not To Be Shared
Excerpt: "EBIA Comment: This new FAQ highlights one of the many details that ERISA plan administrators, TPAs, and other Form 5500 preparers will need to understand as they get ready to file Form 5500s electronically under EFAST2. And, as the DOL notes, some filers will need to adjust their practices in order to comply. Although EFAST2 electronic credentials cannot yet be obtained (the system is expected to be up and running in January 2010), the DOL has been making an effort to provide information and resources on its website about the upcoming requirements." (Employee Benefits Institute of America)
PBGC Presss Release on the Annual Management Report for Fiscal Year 2009
Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) ended fiscal year 2009 with an overall deficit of $22 billion, according to the agency's Annual Management Report submitted to Congress today. The result compares with the $11.2 billion deficit recorded at the previous fiscal year-end on September 30, 2008." (Pension Benefit Guaranty Corporation via BenefitsLink.com)
Pension Benefit Guaranty Corporation Annual Management Report for Fiscal Year 2009 (PDF)
99 pages. Excerpt: "[Some of the Fiscal Year 2009 Financial Statement Highlights are as follows:] PBGC's combined financial condition declined by $10.80 billion, increasing the Corporation's deficit to $21.95 billion as of September 30, 2009, from $11.15 billion as of September 30, 2008. PBGC's portfolio achieved a return on investment of 13.2%. The single-employer program's net position declined by $10.40 billion, increasing the program's deficit to $21.08 billion. The multiemployer program's net position declined by $396 million, increasing that program's deficit to $869 million. The primary factors in the single-employer program's net loss included a charge of $10.55 billion due to an unfavorable change in interest factors, $4.23 billion in losses from completed and probable terminations, $3.92 billion in charges due to passage of time, and $383 million of administrative and other expenses. These factors were offset by $6.33 billion in investment income, $1.82 billion in net premium income, and a credit of $573 million from actuarial adjustments." (Pension Benefit Guaranty Corporation)
[Guidance Overview] November 30, 2009, Deadline for Important Decisions Regarding 2009 RMDs
Excerpt: "Because the relief under WRERA is optional, plan sponsors must decide now how they intend to treat 2009 RMDs. Plan sponsors have the following three options: Forego the optional waiver and continue with 2009 RMDs as normal. Waive 2009 RMDs, unless a participant elects a distribution of such amounts. Distribute 2009 RMDs, unless a participant elects to waive such amounts." (Troutman Sanders LLP)
[Guidance Overview] Deflation and the Effect on Benefit Plan Limits
Excerpt: "Most 2010 IRS benefit plan limits and Social Security benefits and thresholds remained unchanged from 2009 despite a roughly 2% decrease in the CPI. In this article we look at the implications of this unusual occurrence beyond 2010." (J.P. Morgan Compensation and Benefit Strategies)
[Guidance Overview] The DOL's New FAQ on Credentials for EFAST2
Excerpt: "To eliminate any doubt as to its position regarding sharing filing signer credentials, the Department of Labor (DOL) added a new FAQ to the series of EFAST2 FAQs it issued in late August . . . . The new FAQ followed closely on the heels of instructions the DOL provided to third party software developers in which they reminded software developers of their obligation to protect the integrity and privacy of the electronic signatures." (SunGard Relius)
[Guidance Overview] Plan Action Required: Updated Safe Harbor Rollover Notices (PDF)
2 pages. Excerpt: "It should be noted that the newly issued safe harbor notices do not include a discussion of the special rollover rules that apply if a defined contribution plan has allowed participants to receive a distribution of amounts that would otherwise represent required minimum distribution but for the special waiver of such distributions for 2009. While formal notice is not required of these provisions, plan sponsors may wish to provide participants with information about them." (Patterson BelknapWebb & Tyler LLP)
PBGC and UK Pension Bodies Agree to Share
Excerpt: "A new agreement between the Pension Benefit Guaranty Corp. (PBGC) and the United Kingdom's Pensions Regulator and Pension Protection Fund provides a framework for information sharing across the pond. According to a PBGC announcement, under a Memorandum of Understanding, signed Wednesday, the three agencies 'will share any unrestricted information that advances the security of defined benefit plans sponsored by private sector companies.' Confidential financial information from those companies will not be shared. 'The agreement is a reflection of the mutual interests of the three agencies and the global reach of corporate entities that sponsor pension plans,' the announcement said." (PLANSPONSOR.com; free registration required)
Specific Corporate Compliance Challenges by Practice Area: ERISA
Excerpt: "[The chapter] provides a general overview of the Employee Retirement Income Security Act of 1974 ('ERISA') and discusses best practices for fiduciary compliance, ERISA litigation and risk management, and ERISA reporting and disclosure requirements." (Corporate Compliance Practice Guide: The Next Generation via Seyfarth Shaw LLP)
Advanta Corp. Faces Several Probes
Excerpt: "On Friday, Philadelphia-based Spector Roseman Kodroff & Willis became the fifth law firm in the past three weeks to say it was investigating Advanta for potential violations of the Employee Retirement Income Security Act (ERISA) of 1974. Spector Roseman's investigation involves concerns that Advanta and other plan administrators may have breached their ERISA-mandated fiduciary duties of loyalty and prudence to participants and beneficiaries of Advanta's employee stock ownership plan and employee savings plan." (Philadelphia Business Journal via bizjournals.com; free registration required)
[Guidance Overview] IRS Retirement Plan Limitations on Benefits and Contributions for Tax Year 2010 (PDF)
Excerpt: "On October 15, the Internal Revenue Service (IRS) announced in a news release (IR-2009-094) the cost-of-living adjustments to be applicable to dollar limitations for defined benefit pension and defined contribution plans and other items for tax year 2010. Most limits remained unchanged from last year due to the fact that cost-of-living index for the quarter ended September 30, 2009 was less than the cost-of-living index for the quarter ended September 30, 2008. By way of example, the Code Section 402(g)(1) limit on the exclusion for elective deferrals remained unchanged at $16,500. This limitation affects elective deferrals to Section 401(k) plans and to the federal government's Thrift Savings Plan, among other plans." (Morgan, Lewis & Bockius LLP)
[Official Guidance] Text of IRS Notice 2009-88: 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] DOL Advisory Opinion 2009-03A on Certain Transactions or Arrangements Involving an Individual Retirement Account
Excerpt: "[The DOL was asked w]hether an IRA owner's granting to a broker of a security interest in assets held in his non-IRA accounts to cover potential indebtedness of an IRA established with the broker would result in prohibited transactions under Code section 4975." (U.S. Employee Benefits Security Administration)
[Guidance Overview] Towers Perrin Monthly Regulatory Round-Up: Retirement (PDF)
Excerpt: "The Monthly Regulatory Round-Up is a high-level summary of legal and regulatory developments that occurred during the past month that may be relevant to large employers." (Towers Perrin)
Benefit Plan Protection: What Insurance Policies Are Needed?
Excerpt: "Experience has shown that benefit plans can face a wide range of potential legal claims and that comprehensive protection requires more than one type of insurance coverage. This publication discusses some common claims involving three insurance policies that can protect benefit plans, their trustees, fund office staff and, by endorsement, agreed-upon people or entities: fidelity bonds, fiduciary liability insurance and employment practice liability insurance." (Segal Company)
[Official Guidance] Composite Corporate Bond Rate Table Updated for November 2009
Corporate bond weighted average interest rate is 6.44%. (Internal Revenue Service)
[Official Guidance] Weighted Average Interest Rate Table Updated for November 2009
4.36 percent. (Internal Revenue Service)
[Official Guidance] Funding Yield Curve Segment Rates Updated for November 2009
Excerpt: "The 24-month segment rates are used for minimum funding requirements if a plan's first plan year begins after 2007, or if an election is made not to use the transitional rule of ?430(h)(2)(G) of the Code. The following rates are the 24-month segment rates for use with respect to the applicable month and year listed." (Internal Revenue Service)
[Guidance Overview] Reminders for Qualified Retirement Plans of Imminent PPA '06 Compliance Deadlines
Excerpt: "This Compliance Alert reminds sponsors of qualified plans about imminent deadlines for compliance with certain provisions of the Pension Protection Act of 2006 (PPA '06). Most significantly, by December 31, 2009, sponsors of calendar-year plans must adopt amendments required by PPA '06. Moreover, sponsors of defined benefit plans that chose to provide PPA '06-required individual benefit statements to all active, vested participants every three years (instead of providing an annual notice of availability upon request) are reminded that the first of these periodic statements must be provided for the 2009 plan year, subject to a delayed effective date for collectively bargained participants." (Segal Company)
[Guidance Overview] Defined Benefit Plan Funding Relief Bill Introduced; Implications for Plan Sponsors
Excerpt: "Congressmen Pomeroy (D-ND) and Tiberi (R-OH) have introduced the Preserve Benefit and Jobs Act of 2009, a bill implementing many of the defined benefit plan funding relief proposals being advocated by sponsor and participant groups. In this article we review the bill and its implications for plan sponsors." (J.P. Morgan)
[Guidance Overview] 2009 Required Minimum Distributions: Plan Sponsors Have Decisions to Make by November 30, 2009
Excerpt: "Plan sponsors must decide by November 30, 2009, how the plan will treat 2009 RMDs. Plan sponsors have three choices: . . . ." (Warner Norcross & Judd)
[Guidance Overview] IRS Issues Final Regulations under Code Section 436; Single-Employer Defined Benefit Plans Affected (PDF)
At page 5. Excerpt: "On October 15, 2009, the Internal Revenue Service published final regulations construing the new funding and benefit restriction requirements applicable to single employer defined benefit plans for plan years beginning after December 31, 2009, under Internal Revenue Code ('Code') sections 430 and 436. . . . This article highlights some of the key provisions of the final regulations governing the benefit restriction provisions of Code section 436." (Trucker Huss)
[Guidance Overview] Pension Plan Amendments Required to Reflect Section 436 Contingent Limitations on Benefits
Excerpt: "Time is running out for sponsors of defined benefit pension plans to adopt amendments that must be made by the end of the year to provide for limits on benefit payments and benefit accruals as required under section 436 of the Internal Revenue Code. These limits apply in the event that the plan falls short of funding targets established under the Pension Protection Act of 2006 (PPA). Limits start to apply if the plan's adjusted funding target attainment percentage (AFTAP), as certified by the plan's actuary, falls below 80 percent, and additional and stricter limits apply if the plan's AFTAP falls below 60 percent." (Faegre & Benson)
[Guidance Overview] Chart of Year-End Required Participant Notices for Qualified Retirement Plans; Dec. 1 Deadline in Some Cases (PDF)
4 pages. Excerpt: "This advisory focuses on the escalating number of year-end notices that defined contribution plans must issue to participants. These notices must be distributed within a reasonable period of time prior to the start of the plan year. The accompanying charts describe these deadlines." (Alston+Bird)
[Guidance Overview] Employers Must Make 2009 Required Minimum Distribution Decisions by November 30 (PDF)
Excerpt: "Pursuant to Notice 2009-82, employers must decide by November 30, 2009, whether to: * Suspend all RMDs for 2009, unless the participant affirmatively requests the distribution; * Distribute all RMDs for 2009, unless the participant affirmatively requests the waiver; * Continue RMDs for 2009 in accordance with plan provisions without a choice participants. In addition, employers will need to decide by November 30, 2009, whether and to what direct rollovers of distributions containing 2009 RMDs will be offered to participants." (Womble Carlyle)
[Guidance Overview] Guidance Provided in September on Waivers of 2009 Required Minimum Distributions (PDF)
Excerpt: "On September 24, 2009, the IRS released Notice 2009-82, which provides relief for individuals who have already received 2009 RMDs, as well as sponsors of plans that may or may not have paid 2009 RMDs." (Prudential Pension Analyst)
[Guidance Overview] PBGC Issues October 2009 Spot Rates for Variable Premium
Excerpt: "The PBGC has also issued the spot segment rates for determining the variable rate premium amount for premium years commencing in October 2009. The spot first, second, and third segment rates for determining the variable rate premium amount for premium payment years commencing in October 2009 are 2.73%, 5.63% and 6.07%." (Wolters Kluwer Law & Business)
IRS Requests Applications for IRS Advisory Committee on Tax Exempt and Government Entities
Excerpt: "The Secretary of the Treasury invites those individuals, organizations, and groups affiliated with employee plans and tax-exempt organizations to nominate individuals for membership on the ACT. Nominations should describe and document the proposed member's qualifications for membership on the ACT. Nominations should also specify the vacancy for which they wish to be considered.' (Editor's note: the document is silent as to which vacancies exist, however.) (Internal Revenue Service)
[Guidance Overview] New Law Requires Employers with Defined Benefit Plans to Post Information on Their Intrane
Excerpt: "Employers that sponsor defined benefit plans need to comply with a new requirement to post the Form 5500 actuarial information for the defined benefit plan on the employer's intranet. The requirement means that employers should be posting the 2008 Form 5500 actuarial information this year even though the DOL has not yet issued regulations." (Dorsey & Whitney)
DB Plan Funding Update: Extending the Analysis Period Shows the Need for Smoother Funding Relief
Excerpt: "In a series of studies since the global financial crisis began, Watson Wyatt has projected the regulatory funded status and minimum required contributions for single-employer defined benefit (DB) plans, in the aggregate.1It has serially updated the analysis to reflect changing market conditions, new regulations and enacted or proposed temporary legislative relief. The studies have contributed to fruitful discussions with sponsors, regulators and legislative staff in the pension community; indeed, the article published in the October 2009 Insider underlay Mark Warshawsky's Oct. 1 testimony to the House Ways and Means Committee. This new study continues that effort by incorporating market conditions to Oct. 15, 2009, adding two proposed legislative relief provisions and extending the funding horizon out to 2013." (Watson Wyatt Worldwide)
[Guidance Overview] Retirement Plans Must Be Amended Before Year End
Excerpt: "The end of the calendar year is soon approaching. For sponsors of qualified benefit plans, this means that plan amendments must be adopted and certain notices may need to be distributed. {The target page] is a summary of the major amendments and notices that apply to most qualified retirement plans. The IRS has also released the new retirement plan limits for 2010 that are available here. During the year end flurry of activity, employers need to focus on these deadlines, notice requirements and new limits. If employers have not yet been contacted by their plan's service provider, employers should take action now to avoid being in noncompliance." (Littler Mendelson P.C.)
[Guidance Overview] Notice of Funding-Based Restriction on Lump-Sums Not Required for Participants in Pay Status
Excerpt: "CCH Note: The Treasury Department was authorized by the Worker, Retiree, and Employer Recovery Act of 2008 (P.L. 110-458) to prescribe rules (in consultation with the Labor Department) governing the ERISA-required notice of funding based limitations on distributions. The instant guidance has been issued pursuant to this authority. In addition, the IRS has further indicated that it will set forth (and presumably expound upon) the relief in upcoming guidance." (Wolters Kluwer)
GAO Testimony: Pension Benefit Guaranty Corporation: Workers and Retirees Experience Delays and Uncertainty when Underfunded Plans Are Terminated
Testimony presented by Barbara D. Bovbjerg, director, education, workforce, and income security, before the Senate Committee on Health, Education, Labor, and Pensions, October 29, 2009. 18 pages. Excerpt: "The committee asked GAO to discuss our recent work on PBGC. Specifically, this testimony describes: (1) PBGC's process for determining the amount of benefits to be paid; and (2) PBGC's recoupment process when the estimated benefit provided is too high and a retiree receives an overpayment that must be repaid. To address these objectives, GAO relied primarily on a recent report titled Pension Benefit Guaranty Corporation: More Strategic Approach Needed for Processing Complex Plans Prone to Delays and Overpayments (GAO-09-716, Aug. 2009). In that report, GAO made numerous recommendations. PBGC generally agreed and is taking steps to address the concerns raised. No new recommendations are being made in this testimony." (U.S. Government Accountability Office)
[Guidance Overview] IRS Guidance for Approval of Revocation Requests for Multiemployer Plans (PDF)
2 pages. Excerpt: "On September 9, 2009, the IRS issued Revenue Procedure 2009-43. This guidance provides additional conditions for the automatic approval of requests for the revocation of multiemployer elections provided under the Worker, Retiree and Employer Recovery Act (WRERA)." (Prudential Retirement)
[Official Guidance] Disaster Relief Announcement 09-20 Relating to PBGC Deadlines in Response to Severe Storms and Flooding in Georgia
Excerpt: "Pension Benefit Guaranty Corporation ('PBGC') is waiving certain penalties and extending certain deadlines in response to the severe storms and flooding that occurred beginning September 18, 2009, in Georgia." (Pension Benefit Guaranty Corporation)
[Official Guidance] Disaster Relief Announcement 09-21 Relating to PBGC Deadlines in Response to Severe Storms and Flooding in American Samoa
Excerpt: "Pension Benefit Guaranty Corporation ('PBGC') is waiving certain penalties and extending certain deadlines in response to the severe storms and flooding that occurred on September 29, 2009, in American Samoa." (Pension Benefit Guaranty Corporation)
[Guidance Overview] Fiduciary Liability Insurance vs. ERISA Fidelity Bonds: What's the Difference?
Excerpt: "This article addresses an issue that every plan sponsor should consider whether they have ever been sued or not. We're talking about the issue of insurance, and more particularly, the distinction between fidelity bonds and fiduciary liability insurance. The issue is important because some confusion exists among retirement plan sponsors about their insurance needs." (Reish & Reicher)
[Guidance Overview] Government Plans Get Two-Year Reprieve on NRA Rule
Excerpt: "The Internal Revenue Service (IRS) has agreed to give governmental plans two more years to comply with final regulations on participant distributions upon reaching normal retirement age (NRA). An IRS news release said the rules will now be effective for plan years after January 1, 2013, instead of January 1, 2011 . . . . The tax agency said the latest move, announced in Notice 2009-86, does not change the effective date for non-governmental plans." (PLANSPONSOR.com; free registration required)
[Guidance Overview] IRS's Final Regulations on Defined Benefit Plan Funding and Benefit Restrictions (PDF)
9 pages. Excerpt: "Guidance is still needed on related important areas not addressed in the final regulations. The IRS indicates that future regulations will be issued covering many of these areas, such as participant notices about benefit restrictions, quarterly contributions, mergers/spinoffs, and expenses to be included in target normal cost." (Buck Consultants)
IASB Rescinds Discount Rate Proposal for Pensions and Other Retiree Benefits
Excerpt: "IASB has rescinded planned amendments to IAS 19, Employee benefits, that would have required all companies to determine discount rates for valuing pension, retiree health and other post-employment benefits from high-quality corporate bond yields. Companies in countries without deep corporate bond markets currently use government bond yields, resulting in reporting inconsistencies. The board halted the project Oct. 22, after weighing the positives (improved global consistency) against the negatives (subjectively determined discount rates due to lack of country-specific data points)." (Mercer LLC)
IRS Personnel Share Unofficial Comments on Compliance Issues with ABA Employee Benefits Committee
Excerpt: "IRS representatives shared their unofficial views on certain benefits issues that were presented earlier this year by the Employee Benefits Committee of the Tax Section of the American Bar Association. Although the views cited by the IRS representatives are not binding and do not represent the policy of the agency, they provide useful insight into areas of concern. Some of the notable unofficial and non-binding views shared by the IRS representatives were the following . . . ." (Deloitte via BenefitsLink.com)
[Guidance Overview] IRS Will Be Auditing Company Employment-Tax Practices Beginning in February
Excerpt: "The Internal Revenue Service will be conducting detailed employment-tax examinations of some 6,000 companies beginning in February, the agency has announced. These auditing initiatives are being carried out, the IRS maintains, to gather statistical data for its first National Research Program study of employment tax compliance in about 25 years. The likely reason for resurrecting this particular focus is that a study of the tax gap -- the difference between the amount of taxes collected and the amount owed -- done in 2005 showed that employment taxes, after underreporting of income by individuals, was the second-largest contributor to the tax gap . . . ." (Human Resource Executive Online)
[Guidance Overview] New IRS Guidance: Application to Retirement Plans (PDF)
4 pages. Excerpt: "Last month, the IRS issued a series of Revenue Rulings and Notices to promote retirement plan savings. This Client Bulletin provides a brief description of this new guidance as well as its potential application to your retirement plans." (Bryan Cave LLP)
What Sponsors and Advisors Should Know About Retirement Plans
Excerpt: "According to a 2007 U.S. Labor Dept. survey, 68% of small business owners feel unprepared for retirement and just 42% maintain a retirement plan. Here are four frequently overlooked tips about retirement plans for plan sponsors and their advisors." (BusinessWeek)
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