"On Wednesday, November 22, the Wall Street Journal reported the announcement by Secretary of Labor Robert B. Reich that the Department's Pension and Welfare Benefits Administration has more than three hundred investigations underway of suspected abuse by corporate sponsors in the operation of their 401(k) plans."
"On February 15, 1996 the Federal Deposit Insurance Corporation ("FDIC") published its final "Regulation of Golden Parachutes and Other Benefits Which May be Subject to Misuse." The regulation is effective April 1, 1996. Although no phase in rule is provided in the regulation, an FDIC spokesman has publicly stated that the agency will not apply the rule to contracts already in place, although it will look disfavorably upon contracts with golden parachutes and indemnity agreements entered after the publication date and prior to the effective date for the new rules. However, on its face, the new regulations apply as of April 1st."
Rev. Rul. 96-20 provides guidance on the requirements for the establishment and maintenance of certain amortization bases under Section 412(l). The guidance is needed, in part, because the amortization base for additional unfunded old liability is scheduled to be established for the 1995 plan year. If the optional rule under Section 412(l)(3)(E) is used to determine the additional unfunded old liability, an employer must make an election which is reported on a timely filed 1995 Form 5500 (see line 20a on Form 5500).Rev. Rul. 96-21 provides guidance for employers who desire to make elections in certain years under Section 412(l)(11) to phase in the increase in the additional funding requirement under RPA '94. Elections under Section 412(l)(11) are made on line 20b of the 1995 Form 5500.
More details are contained in Announcement 96-18.