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Pillsbury Executive Compensation Update, Spring/Summer 2013 (PDF)

"[N]ew tax laws enacted in 2012 require the design and purpose of current and future deferred compensation to be reviewed. Further, as companies become more global, it has become necessary to understand how foreign laws may impact these arrangements.... [This publication] explore[s] new developments regarding global stock plans compliance issues, and the legislative impact on the taxation of stock options and other forms of equity compensation, as well as how the 2012 tax law makes deferred compensation a more attractive benefit."

Pillsbury Law Firm Requests IRS Clarification of Foreign Investment Reporting Rules for Pension Plans (PDF)

3 pages. Excerpt: In order to diversify their investments, many U.S. qualified retirement plans invest a portion of their trust assets in foreign investment funds. In past years, it has generally been assumed that these investments are not reportable on [the Report of Foreign Bank and Financial Accounts, or 'FBAR'], as long as the plan has a minority interest in the fund. In October 2008, however, the IRS added language to the FBAR instructions stating that 'financial accounts' reportable on FBAR include mutual funds. We understand that certain IRS officials are taking the position that the term 'mutual funds,' for this purpose, includes offshore hedge funds and private equity funds. We believe that this reading is overly broad.

From Paychecks to Perks: Navigating New OBBBA Rules on Compensation

"While many of these changes only become effective in 2026, proactive employers should begin planning now to address these changes, communicating these changes to employees and modifying plan documents and pay practices to accommodate these changes.... [A table] summarizes the key compensation and benefits provisions of the OBBBA and provides practical guidance to employers for implementing the OBBBA's mandates."

Equity Compensation Primer: ISOs v. NSOs

"Many early-stage companies give employees, consultants, advisors, board members and other service providers an opportunity to own a stake in the company through the grant of compensatory stock options.... This article explains why companies grant options to service providers and summarizes the key differences between the two types of options: incentive stock options (ISOs) and non-qualified stock options (NSOs)."

DOL Withdraws 2022 Crypto Guidance: What It Means for 401(k) Plan Fiduciaries

"The [DOL's] withdrawal of its 2022 crypto guidance signals a significant policy shift, but fiduciary obligations under [ERISA] remain unchanged. Plan fiduciaries should anticipate renewed participant interest in crypto, despite continued regulatory uncertainty and operational hurdles."

IRS Eases Form 1095-C Burden for Employers

"While the PBRA and ERIA provide some relief for employers, there are a few remaining unknowns that may make implementation of the PBRA method complicated for employers deciding how to meet the Form 1095 obligations for the 2024 plan year."

IRS Proposes New Rules to Implement Expanded $1 Million Limit on Deductible Pay

"The proposed regulations provide clarity on the application of the deduction limit to a broader group of covered employees. Notably, 'covered employee' was formerly limited to five executive officers, plus former covered executive officers. Under the expanded definition, the next five highest-compensated employees are included, even if they are not executive officers, do not work directly for the publicly held corporation, or were employed for only part of the year."

DOL Expands Investment Advice Subject to Fiduciary Liability

"Plan sponsors should review their services agreements and reach out to their financial services providers to ensure that they come into compliance with the new rule, including full disclosure of any potential conflicts of interest. Plan sponsors should also monitor requests for employee data and other communications between their service providers and their employees and other plan participants -- in particular, communications sent out when an employee is retiring or otherwise separating from service or a participant becomes eligible to take a distribution of benefits for any other reason."

DOL Ups Its Game on Cybersecurity Program Oversight, Begins Audits

"In light of the DOL's cybersecurity audit initiative, employers and fiduciaries should act now to ... [1] Review internal cybersecurity programs ... [2] Analyze service providers' cybersecurity programs and update service contracts ... [3] Review participant messaging around cybersecurity awareness and the importance of monitoring retirement plan accounts."

Year-End Stimulus Bill Permits Extension of FFCRA Leave

"Covered employers are permitted to extend partially paid FFCRA leave and to claim a payroll tax credit for qualifying leave taken through March 31, 2021. FFCRA rights expire on December 31, 2020, for employees of covered companies who do not voluntarily elect to extend the benefits. Employers must still accommodate employees with disabilities and comply with employee protections mandated by state and local laws."