Headlines about "Ret plans - amendments required, incl. EGTRRA"
Gathered from the web by the editors at BenefitsLink.com.
Employers to Begin Receiving 401(k) Compliance Questionnaires from IRS (PDF)
1 page. Excerpt: "Beginning this month, we believe the IRS will launch a new compliance initiative focusing on 401(k) plans. The IRS is expectedto select several thousand employers at random to receive detailed questionnaires. The questionnaires are intended to help the IRS assess (1) compliance with the statutory and regulatory rules governing 401(k) plans, (2) potential failures to follow a plan's written terms, (3) whether payroll systems and other internal controls are appropriate, and (4) other topics related to the operation of 401(k) plans." (Seyfarth Shaw LLP)
[Guidance Overview] PPA Requires Funding Improvement or Rehabilitation Plan
Excerpt: "The final regulations set forth the administrative procedures for assessing and contesting the penalties under ERISA ?502(c)(8). The final rules generally explain how the maximum penalty amounts are computed, identify the circumstances under which a penalty may be assessed, set out the procedural rules for service by the Labor Department and filing by a plan sponsor, and provide sponsors with the procedures for contesting an assessment by requesting an administrative hearing." (Wolters Kluwer)
The IRS 2010 Guidance Plan: A Look at What's Coming
Excerpt: "Each year the IRS issues a list of its top-priority guidance initiatives for the year, called the guidance plan. The long-awaited list of items was issued in late 2009, and sets forth the plan for issuing much-needed guidance for the July 2009?June 2010 year. . . . A look at a number of provisions from the guidance plan that remain to be addressed, based on the type of plan, will give us an idea of what is in store for the coming year." (Groom Law Group)
[Opinion] ASPPA Comments on IRS Revenue Procedure for Determination Letters and Remedial Amendments
Excerpt: "On March 4, 2010, ASPPA filed comments with the IRS providing recommendations on the how the procedures for determination letters, plan remedial amendments and other matters covered by Revenue Procedure 2007-44 could be improved. The letter was filed in anticipation of the issuance of an updated revenue procedure in this area." (American Society of Pension Professionals and Actuaries (ASPPA))
[Guidance Overview] April 30, 2010, Deadline for Employers to Adopt Restated Prototype Plan Documents (PDF)
4 pages. Excerpt: "April 30, 2010, is the deadline for employers with pre-approved defined contribution Master & Prototype plans or Volume Submitter plans . . . to adopt an EGTRRA-approved plan document. Failure to meet this deadline will result in significant adverse tax consequences to the retirement plan and to the plan's participants." (Alston & Bird)
[Official Guidance] DOL Creates New Web Page Covering 403(b) Plan Reporting and Coverage Issues
Collects relevant Field Assistance Bulletins, DOL publications, links to DOL's voluntary corrections program and more. No original content, but the links are handy. (U.S. Employee Benefits Security Administration)
[Guidance Overview] Deadline Approaching for EGTRRA Restatement and IRS Determination Letter Filings for Prototype and Volume Submitter Plans
Excerpt: "The deadline for restating plans for EGTRRA and requesting a determination letter on such restatements is April 30, 2010. Employers who have not been contacted by their document providers to prepare a restatement of a prototype or volume submitter defined contribution plan should immediately contact the provider to have the plan restated for EGTRRA." (Perkins Coie LLP)
IRS to Mail 401(k) Compliance Questionnaires
Excerpt: "New York accounting firm Eisner LLP has issued a warning that the Internal Revenue Service (IRS) will begin sending questionnaires to 401(k) sponsors to gather information about their level of compliance with applicable tax rules." (PLANSPONSOR)
[Guidance Overview] Summary of Amendments and Due Dates for Defined Contribution Plans, Including 457(b) and 403(b) Plans (PDF)
6 pages. Laws covered include EGTRRA, the final 401(k) and (m) regulations, 403(b) final regulations, PPA, HEART Act, WRERA, 415 final regulations, regulations on definition of normal retirement age, and the Heinz decision/section 1.411(d)-3 vesting regulations. (ftwilliam.com)
[Official Guidance] IRS 'Employee Plans News' Special Edition, January 2010 (PDF)
2 pages. Contains several brief articles, including 'Cycle D Submission Period Ends on February 1, 2010,' 'New Address for Determination Letter Applications', 'April 30 Deadline for DC Pre-Approved Plans,' and 'Free Phone Forum on Funding-Based Benefit Restrictions -- January 26, 2010." (Internal Revenue Service)
[Guidance Overview] IRS's Final Regulations on 204(h) Notices (PDF)
3 pages. Excerpt: "The IRS recently issued final regulations on the notice requirements for amendments that would significantly reduce the future rate of benefit accruals in a qualified pension plan. The regulations clarify when notices are required in light of changes made by the Pension Protection Act of 2006 (PPA), provide rules on timing for retroactive amendments, and coordinate the requirements for these notices with other statutory notice requirements." (Buck Consultants)
[Guidance Overview] Final IRS Rules for ERISA Section 204(h) Notices (PDF)
2 pages. Excerpt: "The Pension Protection Act of 2006 (PPA) made changes to the 204(h) notice requirements. Recently, the IRS issued final regulations reflecting these PPA changes. The final regulations also provide guidance regarding the timing of 204(h) notices for plan amendments that have retroactive effective dates." (Prudential Retirement)
Minimum Funding Rules As Explored at Actuarial Meeting (PDF)
Pages 6-7 of 8 pages. Excerpt: "At the 2009 Enrolled Actuaries Meeting, Chet Andrzejewski and Jess McGrath led a session that addressed a number of these issues, including contribution timing, credit balances, quarterly contributions, liquidity shortfall calculations, penalties for failing to making contributions, and small plan rules." (American Academy of Actuaries)
[Guidance Overview] IRS List of Qualification Requirements for Retirement Plans
Excerpt: "In Notice 2009-98, the Internal Revenue Service sets forth the 2009 Cumulative List of Changes in Plan Qualification Requirements described in Sec. 4 of Rev. Proc. 2007-44, C.B. 2007-2, 54. The 2009 Cumulative List is to be used primarily by sponsors of individually designed retirement plans that are in Cycle E." (Wolters Kluwer)
[Guidance Overview] IRS Extension of Plan Amendment Deadline for Certain Provisions of the Pension Protection Act
Excerpt: "It is important to note that the relief described in this Alert only extends the deadline for adopting amendments to reflect the PPA provisions listed below. The dates as of which a plan must be operated in compliance with these rules have not been extended, and the amendment deadline has not been extended for any other amendments required under the PPA." (Drinker Biddle & Reath LLP)
[Guidance Overview] Cycle E Cumulative List
Excerpt: "The 2009 List of Cumulative Changes for Cycle E plans has been issued as IRS Notice 2009-98. Cycle E is for individually designed plans whose EIN ends with a 5 or a 0. Cycle E starts February 1, 2010 and ends January 31, 2011." (McKay Hochman Co.)
[Guidance Overview] IRS's 2009 Cumulative List of Changes for Cycle E Plans and Extension of Diversification Amendment Deadline
Excerpt: "EBIA Comment: All sponsors of Cycle E plans (and other plans filing in Cycle E) and their advisors should carefully review the 2009 Cumulative List to ensure that their submissions address the issues the IRS has specifically identified for review in the determination letter process. Of course, to be qualified, plans must comply with all relevant qualification requirements, even those that are not on the list." (Employee Benefits Institute of America)
[Guidance Overview] Year-End IRS Guidance: Limited PPA Amendment Relief, ? 403(b) Opinion/Determination Letters, 2009 Cumulative List and ? 409A/TARP Relief (PDF)
3 pages. Excerpt: "Among the requirements for [409A Relief for Payments Under TARP] under the Notice is that the Special Master's advisory opinion specifically address the relevant compensation arrangement, including changes to the time and form of payment or any payment condition imposed on the TARP recipient that is related to the receipt or repayment of TARP funds. In addition, the TARP recipient must enter into a written agreement adopting the advisory opinion within a certain time period." (Sutherland Asbill & Brennan LLP)
[Guidance Overview] IRS Extension of Deadline for Some PPA Amendments
Excerpt: "The notice does not extend the deadline for all PPA and WRERA amendments, however. The extension applies to only the amendments discussed . . . . This extension gives employers the option of going forward with year-end amendments addressing the changes above, or waiting for further IRS guidance before amending their plans. Note that compliance with these provisions is still required even though the amendment deadline has been extended." (Seyfarth Shaw LLP)
[Guidance Overview] IRS Extension of Deadline for Adopting Certain PPA Amendments
Excerpt: "Please note that Notice 2009-97 does not provide a blanket extension of the PPA-required amendments. For example, it does not extend the deadline for amendments to comply with the following requirements . . . ." (PricewaterhouseCoopers LLP)
[Guidance Overview] Year-End Compliance Issues for Retirement Plan Sponsors (PDF)
2 pages. (Milliman)
[Guidance Overview] Procedures for 403(b) Plan Qualification Will Be in IRS Future Guidance (PDF)
2 pages. Excerpt: "An employer that first establishes a 403(b) plan on or after January 1, 2010 will also have reliance retroactive to the plan's effective date that its plan complies with Section 403(b) and the regulations if the employer adopts a pre-approved plan with a favorable opinion letter or submits its individual plan to the IRS for a determination letter and retroactively corrects any defects." (Buck Consultants)
[Guidance Overview] Bringing Higher Education 403(b) Plans Up-to-Date with Current ERISA Fiduciary Best Practices
Excerpt: "The white paper, released by Diversified Investment Advisors, Inc., was developed to help higher education plan sponsors understand when and how ERISA applies to 403(b) plans, as well as provide best practice recommendations for complying with fiduciary requirements. Diversified partnered with Groom Law Group to prepare the paper in light of the urgency surrounding compliance with the final 403(b) regulations and the pressing concern regarding the application of proper fiduciary practices." (Groom Law Group)
[Guidance Overview] Misinterpreting the IRS' New PPA Amendment Deadline Could be Costly
Excerpt: "A careful reading of Notice 2009-97 indicates that the extension is available only for amendments that: Comply with the funding-based benefit limitations that apply to defined benefit plans. Apply certain of the new rules to cash balance and other hybrid plans. Implement the diversification requirements for 401(k) and other defined contribution plans that invest in employer stock." (Osler, Hoskin & Harcourt LLP)
IRS 2009 Cumulative List of Changes in Plan Qualification Requirements
Excerpt: "In Notice 2009-98, the IRS says that it will not consider, when reviewing submissions made for Cycle E, any: -- guidance issued after October 1, 2009; -- statutes enacted after October 1, 2009; -- qualification requirements first effective in 2011 or later; or -- statutory provisions that are first effective in 2010, for which there is no guidance identified in the notice. Terminating plans must include all law changes in effect at the time of termination." (ERISA Lawyer Blog)
[Guidance Overview] IRS's Initial Remedial Amendment Period Guidance for 403(b) Plans
Excerpt: "Signaling what will be coming down the pike soon for 403(b) plans, the IRS has issued Announcement 2009-89 to provide some information in advance of the anticipated 403(b) 'pre-approved' or prototype program, which it says will be out 'in a few months', and will be followed by an individual determination letter program." (Groom Law Group)
[Guidance Overview] No Extension of PPA Amendment Deadline
Excerpt: "Contrary to rumors currently circulating, IRS Notice 2009-97 (issued on Friday, 12/11/09) DOES NOT provide for a general extension of the deadline to adopt a good-faith PPA amendment. The amendment only delays the deadline (to the last day of the 2010 plan year) for 3 specific PPA provisions . . . ." (SunGard Relius)
IRS Retirement Newsletter Highlights Internal Compliance Controls, Schedule SSA, and Website Updates
Excerpt: "EBIA Comment: While this quarterly newsletter (a companion to the IRS's Employee Plans News) does not delve deeply into the subjects it covers, it provides a helpful overview of recent IRS and DOL developments with links to more detailed information. The newsletter often provides insight into issues of current concern to the IRS, as illustrated by this edition's internal controls interview." (Employee Benefits Institute of America)
[Guidance Overview] Notice 2009-97 Does Not Extend Deadline for Amendments on Applicable Interest Rate or Mortality Table (PDF)
Excerpt: "Importantly, the notice does not provide a blanket extension of the amendment deadline for all plan document changes that are required to comply with or to implement changes made by PPA or WRERA. Moreover, the notice states that Section 411(d)(6) anti-cutback relief will not be granted for amendments made after the original PPA deadline, except for the limited class of amendments described above. In particular, there is no extended deadline and no expanded Section 411(d)(6) relief for plan amendments addressing the PPA changes to the Section 417(e) provisions specifying the 'applicable interest rate' and the 'applicable mortality table.'" (Buck Consultants)
[Guidance Overview] Caution: Notice 2009-97 Provides Amendment Extension for Certain PPA Changes Only
Excerpt: "Please note that Notice 2009-97 does not delay the amendment deadline for a number of required PPA provisions. In general, all DB and all DC plans will still need to be amended for PPA provisions by the last day of the plan year beginning on or after January 1, 2009." (Fort William LLC)
[Guidance Overview] IRS's One-Year Extension to Adopt Certain PPA-Related Amendments (PDF)
1 page. Excerpt: "[On December 11], the IRS issued Notice 2009-97, which extends by one year ? to the last day of the 2010 plan year ? the deadline for amending qualified retirement plans to reflect certain provisions of the Pension Protection Act (PPA) and the Worker, Retiree and Employer Recovery Act of 2008 (WRERA). . . . The notice provides welcome relief for some plan sponsors that are rushing to get amendments adopted by the end of December, but there still may be amendments that need to be made by the last day of the 2009 plan year." (Buck Consultants)
[Official Guidance] Text of IRS Notice 2009-98: 2009 Cumulative List of Changes in Plan Qualification Requirements (PDF)
19 pages. Excerpt: "The 2009 Cumulative List is to be used primarily by plan sponsors of individually designed plans that are [or have elected to be] in Cycle E. . . . The list of changes in section VI of this notice does not extend the deadline by which a plan must be amended to comply with any statutory, regulatory, or guidance changes. . . . In accordance with Rev. Proc. 2007-44, the Service will start accepting determination letter applications for Cycle E plans beginning on February 1, 2010." (Internal Revenue Service)
[Official Guidance] Text of IRS Notice 2009-97: Extension of Deadline for Certain Qualified Plan Amendments Required by PPA and WRERA (PDF)
6 pages. Excerpt: "The deadline is extended to the last day of the first plan year that begins on or after January 1, 2010. This extension applies to: 1. The deadline for amending single-employer defined benefit plans to meet the requirements of ?? 401(a)(29) and 436, relating to funding-based limits on benefits and benefit accruals under single-employer plans; 2. The deadline for amending cash balance and other applicable defined benefit plans, within the meaning of ? 411(a)(13)(C), to meet the requirements of ? 411(a)(13) (other than ? 411(a)(13)(A)) and ? 411(b)(5), relating to vesting and other special rules applicable to these plans; and 3. The deadline for amending applicable defined contribution plans, within the meaning of ? 401(a)(35)(E), to meet the requirements of ? 401(a)(35), relating to diversification requirements for certain defined contribution plans. This notice also provides limited relief from the anti-cutback requirements of ? 411(d)(6) . . . ." (Internal Revenue Service)
[Official Guidance] Text of IRS Announcement 2009-89: Remedial Amendment Period and Reliance for 403(b) Plans for 2010 (PDF)
Reminds employers that 403(b) plans that comply with Notice 2009-3 will be treated as satisfying the statutory and regulatory requirements for all of 2009, and addresses the ability to continue to have such reliance for the 2010 year. Upcoming revenue procedures will address the use of pre-approved plans and applications for determination letters for individually-drafted plans. An employer that has complied with Notice 2009-3 for 2009 and that meets the deadlines in 2010 to be set in the upcoming revenue procedures for adopting a pre-approved plan or filing for a determination letter will have a remedial amendment period during which plan language defects can be remedied retroactively, so that the plan can continue to be in compliance for 2010. (Internal Revenue Service)
[Guidance Overview] 2010 Sample Compliance Calendar
Excerpt: "This calendar provides general key retirement plan compliance requirements common to most calendar year plans." (ERISAdiagnostics Inc.)
[Guidance Overview] Compliance Update for Tax-Qualified Retirement Plans (PDF)
4 pages. Excerpt: "This Client Alert describes upcoming key deadlines and actions that must be taken by plan sponsors of tax-qualified retirement plans by the end of 2009 or beginning of 2010. In particular, many plansponsors that maintain qualified plans must adopt certain amendments to comply with the Pension Protection Act by December 31, 2009. In addition, plan sponsors should ensure compliance with recent regulations and guidance on plan disclosures that apply to all qualified plans." (Paul, Hastings, Janofsky & Walker LLP)
[Guidance Overview] 2009 End-of-Year Update on Required Retirement Plan Amendments
The article is written for users of Relius documents, but includes links to documents that contain lists of general interest to qualified retirement plan sponsors. (SunGard Relius)
[Guidance Overview] IRS to Suspend Issuing Determination Letters for Preapproved Defined Benefit Plans
Excerpt: "Effective Feb. 22, 2010, IRS temporarily will stop accepting determination letter (DL) applications from adopting employers of preapproved defined benefit (DB) plans. The move comes as IRS prepares for a surge of EGTRRA-related filings. Sponsors of preapproved DB plans that submitted EGTRRA restatements by January 2008 should be receiving IRS approval in early 2010. After that, employers will have a two-year window to adopt the restated plans and, if desired, submit them for DLs using Form 5307. The suspension does not affect DL applications filed under a correction program." (Mercer)
[Guidance Overview] Required, and Optional, Qualified Plan Amendments for the 2009 Plan Year
4 pages. Excerpt: "All retirement plans will likely need to be amended for the Pension Protection Act of 2006 (PPA) before the end of the 2009 plan year. This is generally true even if a plan has been restated for EGTRRA (or otherwise recently restated). Some qualified documents may not require an employer signature and can be adopted at the prototype sponsor/volumesubmitter practitioner level. The deadline, requirements for signatures and the PPA provisions that need to be adopted will be discussed . . . . Wewill also briefly discuss other required amendments that may be included with PPA Amendments or that will be required in the near future." (American Society of Pension Professionals & Actuaries)
[Guidance Overview] Overview of Year-End Compliance Deadlines: Qualified Plans, 403(b) Plans and 409A Plans
4 pages. Excerpt: "Multiple deadlines are approaching at year-end, including required amendments and notices for qualified retirement plans, required plan documents for 403(b) plans, required changes to maintain qualified performance-based compensation under Section 162(m) of the Internal Revenue Code ('Code'), and a correction opportunity for operational failures under Section 409A." (PriceaterhouseCoopers)
[Guidance Overview] End of Year Compliance Items for Qualified Retirement Plans (PDF)
4 pages. Excerpt: "The Pension Protection Act of 2006 ('PPA') made several changes to the laws governing qualified retirement plans and requires documentary and operational changes to such plans by the end of the 2009 plan year. [The target document] is a brief summary of each of those changes. Also included are brief summaries of the provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008 ('HEART Act') and the Worker, Retiree and Employer Recovery Act of 2008 ('WRERA') that require amendments or other changes that may be included in 2009 year-end amendments, but are not required until later dates." (Bryan Cave LLP)
[Guidance Overview] IRS's Final Rule on Notice Requirements for Pension Plan Amendments That Reduce Benefits Accrued Before the Plan Amendments' Applicable Amendment Dates
Excerpt: "In its guidance, the agency said except as otherwise provided, section 204(h) notice must be provided at least 45 days before the effective date of any section 204(h) amendment (15 days for small plans and multiemployer plans). For certain amendments effective not later than December 31, 2008, section 204(h) notice does not fail to be timely if the notice is provided at least 30 days, rather than 45 days, before the date that the amendment is first effective." (PLANSPONSOR.com; free registration required)
[Official Guidance] Text of IRS Announcement 2009-85: Form 5307 GUST Applications for Pre-Approved DB Plans to Stop on Feb. 22, 2010 (PDF)
Excerpt: "On February 22, 2010, the Service will temporarily stop accepting applications for determination letters for defined benefit plans that are filed on Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans for the GUST program. The Service is taking this action because all pre-approved . . . defined benefit plans are required to be restated to comply with items identified for review in Notice 2007-3, 2007-1 C.B. 255 ('2006 Cumulative List') . . . . These restated pre-approved plans will be submitted to the Service for a determination letter (if needed) using Form 5307 during a period of approximately two years, which the Service expects to announce early in 2010. The temporary hiatus in accepting Form 5307 applications will allow the Service to prepare to receive the applications submitted by adopters of these restated pre-approved plans." (Internal Revenue Service)
[Official Guidance] Text of Final IRS Regs on ERISA 204(h) Notice of Reduction in Accrued Benefits (PDF)
33 pages. Effective date is Nov. 24, 2009 (when they will appear in the Federal Register) but detailed 'applicability dates' are provided. Excerpt: "This document contains final regulations providing guidance relating to the application of the section 204(h) notice requirements to a pension plan amendment that is permitted to reduce benefits accrued before the plan amendment's applicable amendment date. These regulations also reflect certain amendments made to the section 204(h) notice requirements by the Pension Protection Act of 2006." (Internal Revenue Service)
[Guidance Overview] Timing Requirements for Qualified Retirement Plan Amendments
Excerpt: "There is no one-size-fits-all checklist that identifies each interim plan amendment that must be adopted -- required amendments depend in large part on the provisions in a particular plan document -- but there is guidance. Notice 2008-108 provides the IRS's most recent cumulative list of statutory and regulatory changes as of October 1, 2008, that may require plan amendments. An updated list is expected later this month or in early December." (Miller & Chevalier Chartered)
[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] 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.)
[Guidance Overview] Seventh Circuit Holds That a Plan Amendment Does Not Violate ERISA's Anti-Cutback Rule
Excerpt: "In Wetzler v. Illinois CPA Society & Foundation Retirement Income Plan, No. 08-2923 (7th Cir. 2009), the plaintiff, Thomas Wetzler, wanted a lump-sum payment of his entire retirement benefit from the Illinois CPA Society & Foundation Retirement Income Plan (the 'Plan'). The Plan is a tax-qualified defined benefit pension plan. The plaintiff was a highly compensated employee. The Plan had always allowed lump-sum payments. However, prior to the plaintiff's retirement, the Plan had been amended to reflect certain provisions of the Internal Revenue Code (the 'Code') and the underlying Treasury regulations, under which the Plan could not make a lump- sum payment to certain highly compensated employees, such as the plaintiff, when the Plan is not sufficiently funded (the 'Amendment'). At the time of the plaintiff's request for a lump-sum payment, there were not enough assets in the Plan to cover this payment." (ERISA Lawyer Blog)
[Guidance Overview] IRS Extends Effective Date of Phased Retirement Regs for Governmental Plans Until 2013
Excerpt: "In Notice 2009-86, the Internal Revenue Service extends to plan years beginning on or after Jan. 1, 2013, the time by which a governmental plan must comply with final regulations on distributions from a pension plan upon attainment of normal retirement age. Those regulations were issued on May 22, 2007. Thus, the 2007 regulations will be effective for a governmental plan (as defined in IRC Sec. 414(d)) for plan years beginning on or after Jan. 1, 2013, but in the case of nongovernmental plans, the regulations were effective as of the date of publication." (Wolters Kluwer)
[Guidance Overview] IRS Relief for Hybrid Plans Pending Soon to be Released Regulations (PDF)
Excerpt: "[T]he IRS issued Announcement 2009-82 providing relief for plan sponsors of statutory hybrid defined benefit plans (including cash balance plans) to comply with the Pension Protection Act of 2006 (PPA) requirement to not have interest crediting rates in excess of a market rate of return." (Buck Consultants)
[Official Guidance] Text of IRS Announcement 2009-82: Hybrid Plan Guidance (PDF)
2 pages. Excerpt: "The Treasury Department and the Internal Revenue Service are announcing relief for sponsors of statutory hybrid plans that must amend the interest crediting rate in those plans. Plan sponsors may rely on this announcement pending publication of the anticipated additional guidance described below. Treasury and the Service expect to issue in the near future final regulations and proposed regulations relating to statutory hybrid plans. The regulations will include rules interpreting the requirement in ? 411(b)(5)(B)(i) of the InternalRevenue Code that such plans not have an interest crediting rate in excess of a market rate of return. The rules in the regulations specifying permissible market rates of return are not expected to go into effect before the first plan year that begins on or after January 1, 2011." (Internal Revenue Service via American Benefits Council)
[Guidance Overview] 403(b) Document Deadline Approaching
Excerpt: "Final Treasury Regulations issued under Internal Revenue Code ('Code') Section 403(b) generally require all 403(b) arrangements to be maintained pursuant to a written plan document. Originally required to be in place by December 31, 2008, in late 2008 the IRS extended the documentation deadline to December 31, 2009. Accordingly, employers that maintain a 403(b) plan or otherwise make such an arrangement available to their employees should confirm that their 403(b) documentation is in compliance immediately." (Seyfarth Shaw)
[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] 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] 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] 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] PPA-Related Cash Balance Plan Amendments Required by End of 2009
Excerpt: "A number of provisions in the Pension Protection Act of 2006 (PPA) apply to cash balance plans, including: (1) a requirement that a plan's interest crediting rate not exceed a market rate of return; and (2) a clarification that the payment of a participant's vested cash balance account satisfies the minimum lump sum requirements of sections 411(c) and 417(e) of the Internal Revenue Code." (Hewitt)
[Guidance Overview] Does Your Qualified Retirement Plan Need Amendment This Year? (PDF)
4 pages. Excerpt: "This advisory is to remind plan sponsors of deadlines for amending qualified retirement plans. Some amendments must be completed by December 31, 2009 (for calendar year plans). Others must be completed by January 31, 2010 (for Cycle D plans). Still others must be completed by the deadline for filing the plan sponsor's 2009 tax return ('interim' amendments). This advisory identifies those plans that must be amended now or in the near future." (Alston+Bird)
[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.)
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