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DOL's Field Guidance on ERISA Bonding Requirement (PDF)

1 page. Excerpt: On November 25, 2008, the Department of Labor issued Field Assistance Bulletin 2008-04, providing guidance to its field offices as to the fidelity bonding requirement of ERISA ? 412. The guidance, in the form of 42 Q-and-A's, reflects DOL's existing regulations, its responses to field and other inquiries, and its position on changes enacted in the Pension Protection Act of 2006.

IRS, Treasury Implementation of PPA Clarification of Required Minimum Distribution Rules for Government Plans (PDF)

1 page. Excerpt: The proposed regulations would be effective for all years to which section 401(a)(9) applies. Comments on the proposed regulations are due by October 8, 2008.

Further Delays on Tax Reporting for Compliant Deferred Compensation (PDF)

1 page. Excerpt: On December 10, 2008, the IRS issued Notice 2008-115, which provides that tax reporting for 2008 will not be required for deferrals of compensation under nonqualified deferred compensation arrangements that comply with ? 409A of the Internal Revenue Code. The Notice also provides guidance to employers and taxpayers regarding reporting and amounts includable in income in the case of non-compliant deferred compensation subject to ? 409A.

FINRA's Variable Annuity Enforcement Efforts in 2018 (PDF)

"In 2018, FINRA imposed more than four times the amount of fines compared with 2017. In 2018, FINRA settled 28 cases, imposing nearly $8.1 million in fines.... FINRA brought 23 VA cases in 2017, imposing $1.9 million in fines. Three of the 2018 settlements levied fines exceeding $750,000, which was the largest fine assessed in a VA case in 2017."

Insurance Agents as Employees? Court Breaks Independent Contractor Precedent

"[The federal district court] held that insurance agents working under independent contractor agreements with an insurer were employees for purposes of pursuing pension and other employment benefits under [ERISA] ... [The decision] ... is notable for its departure from industry practice and prior legal precedent treating many insurance agents as independent contractors. It also notable in that many of the factors the court found convincing are customary, sensible and expected business practices for an insurer ensuring that its agents meet minimum standards for services conducted under its brand." [Jammal v. American Family Insurance Group, No. 13-437 (N.D. Oh. Aug. 1, 2017)]

Proposed Regs Exempt Most Retirement Savings Distributions from 3.8% Net Investment Income Tax, But Not All (PDF)

"Taxable plan distributions would be taken into account in determining whether the AGI threshold is met .... Logically, the same result should obtain for most but not all equity-based compensation arrangements. For example, dividends received after a section 83(b) election is made with respect to a restricted stock award may be subject to section 1411.... In contrast, the taxable portion of annuity payments or withdrawals from and surrenders of nonqualified annuity contracts -- i.e., annuity contracts purchased outside of qualified retirement plans, commonly to accumulate retirement savings -- would be 'investment income' for this purpose[.]"

Proposed New Enforcement Procedures and Reporting for MEWAs (PDF)

While the objective of these rules is to police fraudulent or otherwise abusive arrangements in the marketplace, as discussed above, a bona fide welfare plan covering employees of multiple members of a business enterprise sometimes can also be a MEWA, depending on the ownership, control and other structural relationships in that enterprise. The consequences of the proposed reporting rules in those circumstances should be carefully considered[.]

New Rules for Summaries of Health Benefits and Coverage (PDF)

Comments on the proposed regulations, the template, and the uniform glossary are due by October 21, 2011.

First Circuit Allows ERISA Retained Asset Account Claim to Proceed (PDF)

Excerpt: On November 6, 2008, the U.S. Court of Appeals for the First Circuit overturned the dismissal of a complaint against an insurer asserting breaches of fiduciary duties under ERISA where the insurer paid life insurance benefits by means of a retained asset account. In so ruling, the court rejected arguments by the insurer (1) that payment through the retained asset account was the equivalent of a lump sum payment and (2) that the breach of fiduciary duty claim was precluded by ERISA's guaranteed benefit contract provision.

DOL's Proposed ERISA Exemptions to Facilitate Liquidity for Retirement Plans Holding Auction Rate Securities (PDF)

2 pages. Excerpt: On November 7, 2008, the Department of Labor proposed four individual prohibited transaction exemptions, requested by broker-dealers, that would facilitate liquidity for ERISA plans or IRAs holding auction rate securities (ARS) for which the Dutch auction process has failed.