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Employee Benefits Jobs
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Webcasts and Conferences
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[Official Guidance]
Text of IRS Instructions for Form W-12: IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal (Rev. October 2014) (PDF)
"This new, voluntary program is designed to encourage unenrolled paid tax return preparers (paid tax return preparers who are not attorneys, certified public accountants (CPAs), or enrolled agents (EAs)) to complete continuing education courses for the purpose of increasing their knowledge of the law relevant to federal tax returns. To participate in the program, an individual must obtain a PTIN and meet certain continuing education requirements for a specific tax year.... By January 2015, the IRS plans to launch a public listing on the IRS website of PTIN holders who are attorneys, CPAs, enrolled agents, enrolled retirement plan agents, enrolled actuaries, as well as individuals who successfully completed the requirements to participate in the Annual Filing Season Program. The searchable listing will include the individual's name, city, state, and zip code." [Also released: Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal.]
(Internal Revenue Service [IRS])
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[Guidance Overview]
IRS Employee Plans News 2014-16, October 15, 2014 (PDF)
Topics include: [1] New single distribution rule -- allows participants to send the pre-tax amount of their distribution to one destination and after-tax to another; [2] Canadian retirement plan participants qualify for tax deferred contributions to certain plans; [3] Mandatory electronic filing for Form 8955-SSA and 5500-series for filers who have to file at least 250 returns during the calendar year; [4] Fidelity bonds and depositing plan contributions; [5] Virgin Island retirement plans project results; [6] Form 5500-EZ Pilot Penalty Relief Program; [7] IRS Nationwide Tax Forums online: seminars include two videos, slides and transcripts on retirement plan topics; [8] The Advisory Committee on Tax-Exempt & Government Entities (ACT) is accepting applications including two for Employee Plans -- apply by Nov. 3; [9] PBGC HATFA premium
guidance; and [10] PBGC Premium payments: instructions and contact information to ensure your payments are posted accurately.
(Internal Revenue Service [IRS])
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[Guidance Overview]
DB Plan Funding in a Pension Stabilization World (PDF)
"What MAP-21 introduced and HATFA extends is flexibility for plan sponsors in choosing how to best fund their plans, as well as a longer period of time for organizing the funding strategy. Under the new regulations, sponsors can choose initially to make the lower required contributions, knowing that higher contributions will likely be due in the future, or, in a potentially more stable approach, they can make contributions in excess of the dampened requirements."
(Russell Investments)
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[Guidance Overview]
IRS Issues Final and Proposed Hybrid Plan Regs
"The new regulations confirm that a cash balance plan may credit interest based on the actual rate of return on the aggregate assets of the plan, provided that plan assets are diversified to minimize volatility.... The regulations clarify that a participant's right to future interest credits under a hybrid plan as determined under the plan terms, to the extent not tied to future service with the employer, is a protected benefit under Code Section 411(d)(6).... The IRS had previously requested comments regarding whether hybrid plans should permit participants to 'direct' the 'investment' of their accounts to track certain pre-selected investment options ... [E]ven though this issue is not settled, hybrid plans should not introduce a self-directed interest crediting method that was not in place on September 19, 2014."
(Proskauer Rose LLP)
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[Guidance Overview]
IRS Issues Final Hybrid Plan Regs with Variable Annuity Pension Plan Implications (PDF)
"On September 19, 2014, the [IRS] published final regulations providing guidance on hybrid pension plans that includes some items of interest to multiemployer pension plan trustees. Although mainly focused on cash balance and pension equity plans, the guidance includes provisions related to variable annuity pension plans (VAPPs), which have been drawing attention among trustees who believe there is enormous value in the defined benefit system. Some of the more onerous provisions needed to satisfy hybrid plan rules are now explicitly removed for VAPPs, and trustees adopting VAPPs have been given more flexibility in plan design."
(Milliman)
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Where Can You Sue an ERISA Plan? Where the Plan Sponsor Says You Can.
"Combined with the Supreme Court's approval in Heimeshoff of contractual limitations in ERISA plans on the time period for filing suit, the approach of [Smith v. Aegon Companies Pension Plan] basically hands control of the basic procedural aspects of litigating ERISA cases -- when and where -- to plan sponsors.... [T]he dissent in Smith makes an important point, which is that the venue provisions of ERISA have long been construed by federal courts in the manner that will best allow participants to protect their rights, and not in a manner that will make it more difficult for them to do so."
(Stephen Rosenberg of The Wagner Law Group)
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Farewell to Company Stock, or Not? (PDF)
12 pages. "[T]he best litigation defense is having a documented, conscientious process for evaluating company stock. Process is an important defense for fiduciaries. Documentation should reflect the deliberation and process followed by the fiduciaries in making a decision about company stock.... Unlike other investment options in the plan, company stock has no obvious benchmark. Hiring an independent fiduciary allows a disinterested professional to evaluate the stock, and it eliminates the concern with inside information."
(PIMCO)
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How a Fiduciary Can Successfully Motivate 401(k) Investors to Do the Right Thing
"If you really believe your purpose is to help people achieve a comfortable retirement, then you've got to be able to convince them to act appropriately. Of course, you can't persuade anyone to do anything if they don't trust you.... This presents a particularly perplexing problem for financial service providers to want to successfully motivate 401k investors to do the right thing. Fortunately, there are proven psychological tools available to do precisely that."
(Fiduciary News)
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The Primary and Supplemental Retirement Plans of State and Local Governments (PDF)
12 presentation slides. Excerpt: "86% of state workers have access to a defined benefit pension plan; 43% have access to a defined contribution plan (2014). 82% of local workers have access to a defined benefit pension plan; 30% have access to a defined contribution plan (2014).... About 30% of state and local workers do not participate in Social Security."
(Center for State & Local Government Excellence)
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Employee Ownership Update for October 15, 2014
Topics include: [1] After Dudenhoeffer, stock-drop case dismissed; [2] Pennsylvania Senate passes employee ownership resolution; and [3] Australia plans to change taxation of stock plans.
(National Center for Employee Ownership [NCEO])
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[Opinion]
Managed Services Help Recordkeepers Evolve Their Operations and Grow Revenue
"Managed services, including IT outsourcing (ITO) and business process outsourcing (BPO), can help retirement administrators overcome these challenges. As a result, ... spending on outsourcing will double through 2015, reaching more than $116 billion: an increase more than twice as fast as traditional IT investments.... [T]his will drive significant change in the way firms approach their operations."
(SunGard Financial Systems)
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[Opinion]
Text of Letter from Retirement Plan Groups to EBSA Supporting 45-Day Window for Annual Fee Disclosures (PDF)
"The Department is considering a 30 or 45-day window with respect to this required annual disclosure due date. We ask the Department to consider a minimum of 45 days for the Annual Disclosure Window. We believe a window of at least 45 days will provide plan sponsors with maximum flexibility in providing the required notices. In addition, we urge the Department to issue regulations as soon as possible to implement this window."
(American Benefits Council and nine other plan and investment groups and associations)
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Benefits in General; Executive Compensation
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[Official Guidance]
Text of DOL Request for Public Comment on Proposed Extension of Information Collection Requests
"This notice requests public comment on the Department's request for extension of the Office of Management and Budget's (OMB) approval of [the following Information Collection Requests:] ... Consent to Receive Employee Benefit Plan Disclosures Electronically.... Furnishing Documents to the Secretary of Labor on Request Under ERISA 104(a)(6).... Affordable Care Act Section 2715 Summary Disclosures.... ERISA Section 408(b)(2) Regulation.... ERISA Procedure 76-1 Advisory Opinion Procedure.... ERISA Technical Release 91-1.... Disclosures by Insurers to General Account Policyholders.... Registration for EFAST-2 Credentials.... Notice of Blackout Period Under ERISA.... Affordable Care Act Internal Claims and Appeals and External Review Procedures for Non-Grandfathered Plans."
(Employee Benefits Security Administration [EBSA], U.S. Department of Labor)
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Press Releases
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