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New CEO for International Foundation of Employee Benefit Plans; Altobelli Retires After 14 Years

Press release. Excerpt: The International Foundation of Employee Benefit Plans announced that Michael Wilson has been hired as the new chief executive officer. Wilson begins his post on September 9, following the retirement of current CEO John A. Altobelli.... During Altobelli's tenure, the Foundation has grown from a $9 million to a $24 million budget. The number of programs offered expanded from 35 in 1988 to over 100 today.

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International Foundation of Employee Benefit Plans Comment Letter to DOL on Proposed Form T-1 (PDF)

16 pages; submitted May 5, 2008. Excerpt: The purpose of this submission is to identify for [the Office of Labor-Management Standards] significant points which support the reinstatement of the exclusion contained in prior T-1 regulations whereby information for Trust Funds covered by ERISA and [that are required to] file Form 5500 need not be reported on the T-1 Form.  MORE >>

Survey by International Foundation of Employee Benefit Plans Finds DC Sponsors Are Making Plan Changes in Face of Economic Downturn

Excerpt: An IFEBP news release said 13% of DC plan sponsors have changed their investment product offerings as a result of the crisis -- almost double the 7% who reported doing so six months earlier. Of the 13% who have implemented changes, 21% added more low-risk investment choices, 18% increased diversification, 16% added lifecycle (target-date) funds or money market funds, and 15% added government-backed options. The poll found 16% of DC plan sponsors reduced or eliminated employer matches as a result of the economic situation. Of those who report having changed their match, 44% have reduced the amount of the match and 52% have suspended the match all together.  MORE >>

Providing Emergency Assistance to Employees Via Employer-Sponsored Private Foundations

"According to Publication 3833, employer-sponsored private foundations may provide assistance to employees or family members affected by a 'qualified disaster' (as defined in the Internal Revenue Code) as long as certain safeguards are in place to ensure that such assistance is servicing charitable purposes, rather than the business purposes of the employer.... [T]he IRS may still review the facts and circumstances to ensure that any benefit to the employer is tenuous and incidental, and that its program is not used to induce employees to follow a course of action sought by the employer or designed to designed to relieve the employer of a legal obligation for employee benefits."  MORE >>

IRS Ruling Shows How Foundation Can Award Grants to Employees' Children as Scholarships

Excerpt: If a private foundation awards educational grants to employees or children of employees of a particular employer who are victims of a qualified disaster as defined in §139 of the Internal Revenue Code, and the educational grants do not satisfy the percentage test of Rev. Proc. 76-47, 1976-2 C.B. 670, are these educational grants treated as scholarships subject to the provisions of §117 and not treated as taxable expenditures under §4945(d)(3)?

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How to Launch an Employee Compensation, Bonus or Benefits Plan Internationally

"Geographical differentials in remuneration arise out of market forces and laws. Wage rates run highest in rich, developed economies with high standards of living. And employee benefits dovetail with local laws.... Yet in recent decades business drivers have pushed multinationals to align or harmonize certain pay, bonus and benefits offerings internationally ... [T]oday's cross-border project teams and instantaneous internal communications motivate employers to extend certain compensation and benefits offerings across borders."  MORE >>

Text of IRS Notice 2014-35: Relief from Internal Revenue Code Late Filer Penalties for Certain Employee Benefit Plans (PDF)

"The Service will not impose penalties under Sections 6652(d) and 6652(e) (as those sections relate to the filing of Form 5500, Form 5500-SF, and Form 8955-SSA) or under Section 6692 (relating to the filing of actuarial reports required by Section [6059] with respect to a year for which filing of such a form is required on a person who [1] is eligible for and satisfies the requirements of the DFVC Program with respect to a delinquent Form 5500 series return for such year and [2] files separately with the Service, in the form and within the time prescribed by this notice, a Form 8955-SSA with any information required to be filed under Section 6057 for the year to which the DFVC filing relates (to the extent that the information has not previously been provided to the Service).... [T]his notice provides relief from the penalties applicable under the Code to the late filing of Forms 5500 and 5500-SF only if any applicable Form 8955-SSA is also filed for the year at issue.... Any Form 8955-SSA required to be filed with the Service pursuant to this notice must be filed on paper by the later of 30 calendar days after the filer completes the DFVC filing or December 1, 2014.... Form 5500-EZ and Form 5500-SF filers for plans without employees ... are not eligible for the relief in this notice. In Rev. Proc. 2014-32 ... the Service has established a temporary pilot program to afford penalty relief under the Code for delinquent Form 5500 series filers that are not covered under Title I of ERISA[.]"

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Employee Benefit Plans: Internal Controls for Processes and Governance

"Internal control is a process ... designed to provide reasonable assurance about the achievement of a plan's objectives with regard to the reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.... Internal control protects plans by [1] minimizing opportunities for unintentional errors or intentional fraud that may harm the plan ... and [2] discovering small errors before they become big problems."  MORE >>

Comments Regarding Possible Issues Under Internal Revenue Code Section 414(x) on Combined Defined Benefit and Employee Cash or Deferred Arrangement Plans

9 pages. Excerpt: The broad intent of ASPPA comments is to ask for clarification that, in those areas not specifically addressed within IRC ?414(x), current law and regulations will apply to eligible combined plans as separate defined benefit and employee cash or deferred arrangement plans. Key recommendations, which are described in greater detail in the Discussion of Issues section, include[.]

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Key Employee Benefit Plan Internal Controls to Have in Place

"[P]lan sponsors need to make sure hours reported are monitored and have a procedure in place for reviewing when participants become eligible for the plan.... For plans with automatic enrollment, sponsors should have procedures in place to make sure no one was missed.... Payroll departments should make sure payroll codes are created for the different uses of compensation.... Plan sponsors should also check vesting accuracy, even if calculated by the recordkeeper or third-party administrator (TPA)."

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Benefits Outside the Box: Using a Charitable Foundation to Enhance Your Culture and Community

"If your Company leadership is looking for an innovative employee benefit – something outside the standard employee benefit package of retirement, health, and welfare benefits, a Company-sponsored charitable foundation might be your answer. A charitable foundation not only can further your Company culture while serving the community, but it also has tax benefits to boot."  MORE >>

Nonprofits Caught in Pension Crossfire Between Arnold Foundation, Public Employee Unions

"[I]rate public-employee unions are pressing nonprofits such as public television, the Pew Charitable Trusts and the Brookings Institution to stop taking money from the Houston-based organization. The unions argue that the Arnold Foundation is trying to sway public opinion to support replacing public pensions -- which give workers including police, firefighters and teachers guaranteed benefits at retirement -- with defined-contribution accounts similar to 401(k)s, or hybrid approaches."  MORE >>

Health and Risk Benefits Design for Internationally Mobile Employees

"A significant majority of multinational employers provide tailored employee benefits and related services to [internationally mobile employees] as a key element of a competitive benefit package. While some employers still rely on home and/or host country plans, offering truly global programs has numerous advantages."

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Hiring Interns and Other Seasonal Employees: When Does ACA Require Benefits Be Offered?

"[1] If interns qualify as seasonal or variable-hour employees, clearly define them and state this in their offer letters.... [2] Closely track the work and hours of interns. Remember a long-term substitute should not replace hiring regular employees. [3] Measure your seasonal employees over a defined measurement period to know if they will become benefits-eligible if they remain employed.... [4] If you decide to hire interns after they complete their internship, offer benefits as appropriate[.]"  MORE >>

IRS Priority List Indicates Increase in International Employee Benefits Compliance Efforts (PDF)

4 pages. Excerpt: First are issues surrounding Puerto Rico plans and 'dual status' plans. In addition to the US tax treatment of distributions (see, e.g., Rev. Proc. 2004-37) and deductions for contributions, the IRS has been working with the Hacienda in Puerto Rico to train plan auditors .... Another area appears to be the valuation of foreign plan investments and disclosures.

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Checklist of Employee and Benefits Considerations for International Companies Expanding Business Into the United States

"Expanding your international business into the United States is an exciting but sometimes daunting venture when it comes to the myriad rules and regulations at play governing employees and benefits. This alert endeavors to simplify those complex rules and regulations in the fields of employment, employee benefits and executive compensation law.... This checklist will guide your company through a multitude of considerations, including identifying essential parties, processes and compliance concerns in employee and benefits."

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MetLife Study of International Employee Benefits Trends

Excerpt: This inaugural edition of the MetLife Study of International Employee Benefits Trends reports on the results of our survey of both employers and employees across four countries that serve as a representative sample of different economic and workplace environments. Two of the countries – the United Kingdom and Australia – are mature economies. The other two – India and Mexico – are newly industrialized countries.  MORE >>

Comments on Proposed Amendments to International Accounting Standard 19, Employee Benefits (PDF)

9 pages. "We do have some concerns ... regarding implementation and measurement details, particularly with regard to termination-of-employment curtailments and the handling of administrative expenses. In addition, we have concerns about the minimum funding requirement, and the disclosures of sensitivities, risk, and multiemployer plans."  MORE >>

Disaster Planning for Employee Benefits (PDF)

"Natural disasters such as hurricanes, forest fires, ice storms and volcanic eruptions can result in widespread evacuations, work cessation and other disruptions that can significantly impact employees. For that reason, employers and benefit plans also should spend time considering and planning for disasters in a way that focuses on employees and plan participants. This article offers a look at several key planning areas."  MORE >>

Text of PBGC Approval of Special Withdrawal Liability Rules: Service Employees International Union Local 1 Cleveland Pension Plan

"[A]n employer that completely or partially withdraws from a defined benefit multiemployer pension plan becomes liable for a proportional share of the plan's unfunded vested benefits.... Congress nevertheless allowed for the possibility that, in certain industries, the fact that particular employers go out of business (or cease operations in a specific geographic region) might not result in permanent damage to the pension plan's contribution base.... Each request for approval of a plan amendment establishing special withdrawal liability rules must provide PBGC with detailed financial and actuarial data about the plan.... PBGC [has] received a request [from] ... a multiemployer pension plan covering the commercial building cleaning and security industries in the greater Cleveland, Ohio area."  MORE >>