Part III --- Administrative, Miscellaneous, and Procedural IRS Notice 2008-50 – Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates This notice contains updates for interest rates for funding requirements under sections 412(b)(5)(B) and 430(h)(2) of the Code applicable for May 2008, and updates for interest rates for minimum present value determinations under 417(e)(3) of the Code for April 2008. Related Links:
Tuesday, May 27, 2008
IRS Notice 2008-50 – Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates
Friday, May 23, 2008
Retirement News for Employers - Spring 2008 Edition
The IRS released Retirement News for Employers - Spring 2008 edition. It contains the following articles:
- EP Connections: Interview with Joyce Kahn - New Law...Help for the Small Employer
- Desk Side Chat with Monika Templeman - What Do I Do if My Plan is Selected for an Examination?
- New on the Web; We're Glad You Asked!
- ERPA is Picking Up Speed
- Product Profile - 401(k) Fix-It Guide - Online Resource
- Written Plan Requirement for 403(b) Plans
- This Way to the Forums
- Recent Guidance
- DOL News
- Fixing Common Plan Mistakes - Hardship Distributions in a 401(k) Plan
- Mark Your Calendar
- Timing is Everything Flyer.
Monday, May 19, 2008
IRS Announcement 2008-44 – Relief for Recipients of Certain Direct Deposits of 2008 Economic Stimulus Payments
Part IV. – Items of General Interest Economic stimulus payment; direct deposit; tax favored account. This announcement provides that individuals who have payments made by direct deposit under the Economic Stimulus Act of 2008 to their IRAs or certain other accounts afforded special tax benefits under the Code may remove the payments without incurring any adverse tax consequences. Related Links:
Friday, May 9, 2008
Governmental Plans Roundtable (April 22, 2008)
The IRS released Employee Plans News - Special Edition, May 2008 which discussed the Governmental Plans Roundtable held on April 22, 2008: IRS Employee Plans hosted a Governmental Plans Roundtable on April 22, 2008 for members of the governmental plans community to begin a dialogue on how to best ensure that these plans satisfy the applicable qualification requirements while also identifying and addressing those unique issues that raise special challenges for governmental plans. See March 2008 Special Edition of the Employee Plans News announcing the Roundtable and the Spring 2008 Edition of the Employee Plans News for comments from the TE/GE Division Commissioner on the Roundtable. The following sessions were presented at the Roundtable: Related Links:
Wednesday, May 7, 2008
Report Of The Working Group On Participant Benefit Statements
The DOL released the Report Of The Working Group On Participant Benefit Statements. The report was produced by the ERISA Advisory Council’s Working Group on Participant Benefits Statements and included the following primary recommendations to the Secretary of Labor for consideration: Recommendation 1: The Department should provide longer due dates for defined benefit plan benefit statements, dates that recognize the time it takes to accumulate details of participant data necessary to calculate all participants' accrued benefits, and that recognize differences in accumulating data. Further, the Department should provide a means for obtaining relief from the due dates for those defined contribution plans with non-participant directed assets that cause delays in obtaining complete data because of the timing of determination of plan assets, such as contributions and asset valuation, participant compensation, and other matters inherent in the plan. Recommendation 2: The Department should convene a Task Force of benefit statement stakeholders to develop the content of a model statement. The view of the Working Group is that the content should be minimized, including only that required by the statute. The model statement should be crafted in a way to inspire sponsors to add information and education. In that regard, the Working Group recommends including the application of IB 96-1 to the benefit statement to clearly communicate the boundaries of the information and education that could be included in benefit statements without crossing the "advice" threshold. Recommendation 3: The Department of Labor should promulgate regulations that preserve the multi-document option for the benefit statement. Further, the Department of Labor should update its regulations regarding electronic communication to a "reasonable access" standard as in the Department of Treasury safe harbor regulation in recognition of the continued advancement in web-based communication and the increase in its use by participants. The Report included the following sections: History of New Rules and Regulations Prior to the PPA, Prior law under ERISA §105 required the plan administrator to provide, only upon request, benefit statements to participants and beneficiaries; no more than one statement was required during a 12-month period. The information required to be furnished included the total accrued benefits and the total vested accrued benefits (or the earliest date on which benefits would become vested). Under ERISA §209, participants who terminated service with the employer or incurred a one-year break-in-service were required to receive a benefit statement. Prior law made no distinction as to the benefit statement requirements between defined benefit and defined contribution plans. Under the new rules (as provided by the PPA), effective for plan years beginning in 2007 (with a delayed effective date for collectively bargained plans), automatic benefit statements are now required. The time period and the information furnished on the statements vary depending on the type of plan, including tri-annually for defined benefit plans (except that defined benefit plans may elect an alternative notice provision and continue to make statements available annually upon request), annually for non-participant directed defined contribution plans, and quarterly for participant directed defined contribution plans. It is expected that the DOL through regulations will specify which plans are covered; the required content for the participant benefit statements; frequency of disclosure, as well as required due dates for compliance and periods of coverage; form of furnishing statements; and mode of delivery. The Working Group Report was also discussed in DOL Working Group Ideas for Benefit Statements.
Friday, May 2, 2008
IRS Form 5500 Filing Update Web Cast
The DOL announced that they are hosting a Web Cast on the IRS Form 5500 reporting requirements on May 8: Washington – The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) will host a free web cast May 8 to help employers and plan administrators understand and comply with the Form 5500 Series reporting requirements under the Employee Retirement Income Security Act (ERISA). This second in a series of web casts will help employers and plan administrators meet their obligations under ERISA to file timely and accurate financial reports on the operations of pension, health and other benefit plans. The web cast will address ways to avoid common filing errors, how to select the accountant best qualified to audit your plan, what to be aware of when reporting alternative investments, and rules on "blackout notices." It will also provide important information to 403(b) plan sponsors to help them prepare for expanded filing requirements, and preparing for an audit of the plan. The Internal Revenue Service will participate in the event to discuss its late and stop-filer program. The series is being offered as part of EBSA's compliance assistance program – Getting It Right - Know Your Fiduciary Responsibilities – to help employers and plan administrators meet their fiduciary responsibilities and avoid potential civil penalties under the law. This event is open to news media.What: Web cast on Form 5500 reporting requirements Who: Employers and plan administrators When: May 8, 2008, Noon to 2 p.m. EST Where: Live over the Internet at the URL below How: Registration is required and available on a first-come, first-served basis. Visit EBSA's Web site at www.dol.gov/ebsa and click "Plan Filing Update Web cast" under "Compliance Assistance Seminars." More Information: Call 202.693.8660
Here is a link to the Plan Filing Update Web Cast, the second in the series of webcasts. The first web cast, Know Your Fiduciary Responsibilities – An Update on Pension Protection Act and Related Guidance for Practitioners, is online and archived from the December 6, 2007 webcast.
Treasury Regulation REG-104946-07 – Hybrid Retirement Plans; Correction
26 CFR Part 1 [REG-104946-07] RIN 1545-BG36 Treasury Regulation REG-104946-07 – Hybrid Retirement Plans; Correction IRS Issues a Correction to the Proposed Cash Balance Regs The IRS issued a correction to the Proposed Regulations on Hybrid Retirement Plans, commonly known as the proposed cash balance plan regulations, which the Service issued on December 27, 2007. Besides correcting a few grammatical errors, the IRS has made a significant change in Proposed Treas. Reg. section 1.411(a)(13)-1. Related Links:
IRS Notice 2008-47 – Public Comment Invited on Recommendations for 2008-2009 Guidance Priority List
Part III --- Administrative, Miscellaneous, and Procedural IRS Notice 2008-47 – Public Comment Invited on Recommendations for 2008-2009 Guidance Priority List The Department of Treasury and the Service invite public comments on recommendations for items that should be included on the 2008–2009 Guidance Priority List. Taxpayers may submit recommendations for guidance at any time during the year. Recommendations submitted by May 31, 2008, will be reviewed for possible inclusion on the original 2008–2009 Guidance Priority List. Recommendations received after May 31, 2008, will be reviewed for inclusion in the next periodic update. Treasury, IRS Solicit Recommendation for 2008-2009 Guidance Priority List IR-2008-62, April 18, 2008 WASHINGTON — The Department of Treasury and Internal Revenue Service invite public comment on recommendations for items that should be included on the 2008-2009 Guidance Priority List. The Treasury Department's Office of Tax Policy and IRS use the Guidance Priority List each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance. The Guidance Priority List focuses resources on guidance items that are most important to taxpayers and tax administration. Published guidance plays an important role in increasing voluntary compliance by helping to clarify ambiguous areas of the tax law. The 2008-2009 Guidance Priority List will establish the guidance that the Treasury Department and IRS intend to issue from July 1, 2008, through June 30, 2009. In reviewing recommendations and selecting projects for inclusion on the 2008-2009 Guidance Priority List, the Treasury Department and the IRS will consider the following: Please submit recommendations by May 31, 2008, for possible inclusion on the original 2008-2009 Guidance Priority List. Information on how to submit recommendations can be found in Notice 2008-47. Taxpayers are not required to submit recommendations for guidance in any particular format. Taxpayers should, however, briefly describe the recommended guidance and explain the need for the guidance. In addition, taxpayers may include an analysis of how the issue should be resolved. All comments will be available for public inspection and copying in their entirety. Related Links:
IRS Notice 2008-46 – Supplemental Guidance Under the Preparer Penalty Provisions of the Small Business and Work Opportunity Tax Act of 2007
Part III --- Administrative, Miscellaneous, and Procedural IRS Notice 2008-46 – Supplemental Guidance Under the Preparer Penalty Provisions of the Small Business and Work Opportunity Tax Act of 2007 This notice provides guidance regarding implementation of the tax return preparer penalty provisions under section 6694 of the Code. Notice 2008–13 supplemented. Related Links:
Tuesday, April 29, 2008
Field Assistance Bulletin No. 2008-03 – Guidance Regarding Qualified Default Investment Alternatives (29 CFR § 2550.404c-5)
Field Assistance Bulletin No. 2008-03 – Guidance Regarding Qualified Default Investment Alternatives (29 CFR § 2550.404c-5) The DOL issued guidance and technical corrections to the default investment alternatives regulations: Washington – The U.S. Department of Labor's Employee Benefits Security Administration today announced publication of technical corrections to the final regulation on qualified default investment alternatives along with guidance to clarify the scope and meaning of the final rule. On October 24, 2007, the department published final rule to implement Pension Protection Act provisions providing a safe harbor from liability for fiduciaries of plans in which the contributions of workers who do not provide investment direction (such as automatically enrolled workers) are invested in "qualified default investment alternatives" or QDIAs. The QDIAs are designed to encourage the investment of employee assets in investment vehicles appropriate for long-term retirement savings. The technical corrections affect three areas of the final regulation on QDIAs. These include changes clarifying the preamble example on "round-trip restrictions," expanding the scope of who can manage a QDIA to include a committee that is a named fiduciary of the plan, and correcting the "grandfather" relief for stable value funds. Field Assistance Bulletin 2008-03 provides guidance on a series of frequently asked questions raised by the employee benefit community since publication of the final rule. The questions address issues relating to the scope of the regulation, the notice requirements, the 90-day limitation on fees and restrictions, management and asset allocation of QDIAs, the capital preservation investment option, and the grandfather relief for stable value funds. An updated fact sheet on the default investment regulation can be found at www.dol.gov/ebsa. The technical corrections are to be published in the April 30 edition of the Federal Register. FAB 2008-03 Background On October 24, 2007, the Department of Labor (Department) published a final regulation(1) providing relief from certain fiduciary responsibilities under the Employee Retirement Income Security Act (ERISA) for investments made on behalf of participants or beneficiaries who fail to direct the investment of assets in their individual accounts. See 29 CFR § 2550.404c-5 (hereafter referred to as the "QDIA regulation"). Since publication of the QDIA regulation, a number of issues have been raised concerning the scope and meaning of various provisions of the QDIA regulation. This Bulletin is intended to supplement the QDIA regulation by providing guidance, in a question and answer format, on a number of the most frequently asked questions. Questions And Answers Scope Of QDIA Regulation Q-1. To what extent does the QDIA regulation relieve a plan sponsor from fiduciary liability when the plan sponsor chooses to create and manage a qualified default investment alternative (QDIA) itself using a mix of the plan's available investment alternatives? Q-2. Is relief available under the QDIA regulation for assets invested in a default investment prior to the effective date of the regulation? Q-3. Could a fiduciary obtain the relief referred to in Q-2, above, with respect to assets invested in a QDIA on behalf of participants and beneficiaries who elected to invest in a default investment prior to the effective date of the regulation? Q-4. Is fiduciary relief under the QDIA regulation available if non-elective contributions such as qualified non-elective contributions (QNECs), or the proceeds from litigation or settlements, are invested in a QDIA? Q-5. Does the QDIA regulation, including the preemption provisions, apply to plans under section 403(b) of the Internal Revenue Code (Code)? Notice Requirements Q-6. How much information regarding fees and expenses attendant to a QDIA must be provided in a notice? Can this information be provided by attaching other disclosure documents to the notice? Q-7. Does the flexibility permitted with respect to use of the Treasury Department's electronic distribution rules apply only to the QDIA notice requirement, or more broadly (i.e. to pass-through of investment materials)? Q-8. Do plan sponsors have to combine the QDIA notice required by the regulation with a notice required by Code sections 401(k)(13) and 414(w)? Q-9. Are the timing requirements for the notices required by the Department of Labor's QDIA regulation the same as the timing requirements for the notices required by the Treasury Department's proposed regulations under Code sections 401(k)(13) and 414(w)? Q-10. Can the QDIA notice be combined with the Code section 401(k)(12) safe harbor notice in the same manner that it can be combined with the Code section 401(k)(13) and 414(w) notices? 90-Day Limitation On Fees And Restrictions Q-11. Would the payment of a fee or expense (e.g., redemption fee) by a plan sponsor or service provider that would otherwise be assessed to the account of a participant or beneficiary during the initial 90-day period satisfy the requirements of paragraph (c)(5)(ii) of § 2550.404c-5? Q-12. For purposes of § 2550.404c-5(c)(5)(ii), does the 90-day clock start from the date an investment becomes a QDIA, or does it begin only in reference to a participant who is being newly "defaulted" into a QDIA? Q-13. Is a QDIA prohibited from including any "round-trip" restriction for the first ninety days? QDIAs – Management And Asset Allocation Q-14. Can an investment fund or product with zero fixed income (or, alternatively, zero equity) qualify as one of the permanent, long-term QDIAs described in paragraph (e)(4)(i) through (iii) of the final regulation? Q-15. The QDIA regulation, at § 2550.404c-5(c)(4), requires that defaulted participants be provided material in accordance with the regulations governing ERISA section 404(c) plans. Is the QDIA regulation intended to require that all of the referenced information be furnished automatically, without regard to whether some of the information for ERISA section 404(c) plans is required to be provided only upon request of a participant or beneficiary? Q-16. Can a plan sponsor use two different QDIAs, for example, one for its automatic contribution arrangement, but another for rollover contributions? Q-17. In the case of an individual account plan sponsored by a single employer, can a committee that is established by a plan sponsor and that, pursuant to the documents and instruments governing the plan, is a named fiduciary of the plan be treated as managing a QDIA for purposes of paragraph (e)(3)(i)(C) of § 2550.404c-5? 120-Day Capital Preservation QDIA Q-18. Is the 120-day capital preservation QDIA, described in paragraph (e)(4)(iv) of § 2550.404c-5, available only for plans that include an EACA? Q-19. Are plans required to provide a 120-day capital preservation QDIA? Q-20. Can a plan sponsor manage the 120-day capital preservation QDIA? Grandfather-Type Relief For Stable Value Funds Q-21. Must a plan sponsor distribute a notice thirty days before the effective date of the QDIA regulation to obtain relief for prior contributions to a stable value fund or product? Q-22. What types of stable value products or funds did the Department intend to include as QDIAs for purposes of the "grandfather"-type relief described in paragraph (e)(4)(v) of § 2550.404c-5? Technical Corrections 29 CFR Part 2550 RIN 1210-AB10 Default Investment Alternatives Under Participant Directed Individual Account Plans QDIA Guidance: Default Investment Alternatives Under Participant Directed Individual Account Plans
Blog Posts/Updates:
Qualified Default Investment Alternatives (QDIA) – DOL Final Regulations
Related Links
- News Release
- Field Assistance Bulletin No. 2008-03 – Guidance Regarding Qualified Default Investment Alternatives (29 CFR § 2550.404c-5)
- QDIA Guidance: Default Investment Alternatives Under Participant Directed Individual Account Plans
- Fact Sheet: Regulation Relating To Qualified Default Investment Alternatives In Participant-Directed Individual Account Plans
- DOL Final Regulation - Default Investment Alternatives Under Participant Directed Individual Account Plans; Final Rule [10/24/2007] [HTML]
- DOL Final Regulation - Default Investment Alternatives Under Participant Directed Individual Account Plans; Final Rule [10/24/2007] [PDF]
- DOL Proposed Regulation - Default Investment Alternatives Under Participant Directed Individual Account Plans [09/27/2006] [HTML]
- DOL Proposed Regulation - Default Investment Alternatives Under Participant Directed Individual Account Plans [09/27/2006] [PDF]
- Pension Protection Act of 2006 (PPA) (Public Law 109–280—Aug. 17, 2006)
Monday, April 28, 2008
IRS Notice 2008-45 - Update for Weighted Interest Rates, Yield Curves, and Segment Rates
Part III --- Administrative, Miscellaneous, and Procedural IRS Notice 2008-45 - Update for Weighted Interest Rates, Yield Curves, and Segment Rates Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates. This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in April 2008; the 24-month average segment rates; the funding transitional segment rates applicable for April 2008; and the minimum present value transitional rates for March 2008. Related Links:
Sunday, April 13, 2008
Treasury Regulation - REG–151135–07 - Multiemployer Plan Funding Guidance; Correction
26 CFR Part 1 [REG–151135–07] RIN–1545–BH39 Treasury Regulation - REG–151135–07 - Multiemployer Plan Funding Guidance; Correction SUMMARY: This document corrects a notice of proposed rulemaking (REG–151135–07) that was published in the Federal Register on Tuesday, March 18, 2008 (73 FR 14417), that provides additional rules for certain multiemployer defined benefit plansthat are in effect on July 16, 2006. SUPPLEMENTARY INFORMATION: Background The notice of proposed rulemaking (REG–151135–07) that is the subject of this correction is under section 432 of the Internal Revenue Code. Need for Correction As published, REG–151135–07 contains an error that may prove to be misleading and is in need of clarification. Correction of Publication Accordingly, the publication of the notice of proposed rulemaking (REG– 151135–07) that was the subject of FR Doc. 08–1044, is corrected as follows: On page 14420, column 3, in the preamble, under the paragraph title ''§ 1.432(a)–1 General Rules Relating to Section 432'', first paragraph, line 1, the language ''Section 1.432–1 provides general'' is corrected to read ''Section 1.432(a)–1 provides general''. Treasury Regulation - REG-151135-07 - Multiemployer Plan Funding Guidance; Correction
Friday, April 11, 2008
Treasury Regulation - REG-108508-08 - Determination of Minimum Required Pension Contributions
26 CFR Parts 1 and 54 [REG-108508-08] RIN 1545-BH71 Treasury Regulation - REG-108508-08 - Determination of Minimum Required Pension Contributions Proposed regulations under section 4971 of the Code provide guidance on the excise tax for failure to make certain required pension funding contributions. The regulations reflect changes made to section 4971 by the Pension Protection Act of 2006. A public hearing is scheduled for August 4, 2008. The Treasury Department and the IRS issued proposed regulations to provide employers with funding guidance for single-employer defined benefit plans:
April 11, 2008
HP-918
Treasury, IRS Issue Funding Guidance for Single-Employer Defined Benefit Plans
Washington, DC--The Treasury Department and the Internal Revenue Service issued today proposed regulations under section 430 of the Internal Revenue Code that provide employers sponsoring single-employer defined benefit plans with guidance regarding the determination of minimum required contributions under the new funding rules enacted as part of the Pension Protection Act of 2006.
The proposed regulations, together with three earlier sets of proposed regulations, enable plan sponsors to determine the contribution requirements that apply to their defined benefit plans under the new funding regime, including the application of the quarterly contribution requirements.
Although the new funding rules are generally effective for plan years beginning on or after January 1, 2008, these regulations are proposed to be effective for plan years beginning on or after January 1, 2009. Plan sponsors, however, can rely on the proposed regulations for purposes of satisfying the minimum funding requirements for plan years beginning in 2008.
On December 19, 2007, the Senate passed an amended version of the Pension Protection Technical Corrections Act of 2007 and on March 13, 2008, the House of Representatives passed similar legislation. These proposed regulations, like the earlier proposed regulations, do not reflect those technical corrections. After technical corrections are enacted, the regulations will be modified to reflect the new provisions.
The IRS released Employee Plans News - Special Edition, April 2008, which also announced the proposed regulations:
The Treasury Department and the Internal Revenue Service issued today proposed regulations under section 430 of the Internal Revenue Code that provide employers sponsoring single-employer defined benefit plans with guidance regarding the determination of minimum required contributions under the new funding rules enacted as part of the Pension Protection Act of 2006.
The proposed regulations, together with three earlier sets of proposed regulations, enable plan sponsors to determine the contribution requirements that apply to their defined benefit plans under the new funding regime, including the application of the quarterly contribution requirements.
IRC Section 430 and Related Regulations
Here are links to the series of regulations issued by the IRS to provide guidance regarding IRC Section 430 - Minimum Funding Standards for Single-Employer Defined Benefit Pension Plans:
- Treasury Regulation - REG-108508-08 - Determination of Minimum Required Pension Contributions - Proposed regulations under section 4971 of the Code provide guidance on the excise tax for failure to make certain required pension funding contributions. The regulations reflect changes made to section 4971 by the Pension Protection Act of 2006. A public hearing is scheduled for August 4, 2008.
- Treasury Regulation - REG-139236-07 - Measurement of Assets and Liabilities for Pension Funding Purposes - Proposed regulations under section 430 of the Code provide guidance on the valuation of plan assets and the determination of benefit liabilities for purposes of the funding requirements that apply to single employer defined benefit plans pursuant to changes made by the Pension Protection Act of 2006. This guidance covers the determination of the plan’s funding target and normal cost, rules regarding the plan’s valuation date, the determination of the actuarial value of plan assets, rules regarding interest rates applied for minimum funding purposes, and special rules for at-risk plans.
- Treasury Regulation - REG-113891-07 - 72 Fed. Reg. 50544 (August 31, 2007) - Notice of Proposed Rulemaking Benefit Restrictions for Underfunded Pension Plans - Proposed regulations under section 436 of the Code provide guidance regarding benefit restrictions for certain underfunded defined benefit pension plans and regarding the use of certain funding balances maintained for defined benefit pension plans. [HTML] [PDF]
- Treasury Regulation - REG-143601-6 - 72 Fed. Reg. 29456 (May 29, 2007) – Notice of Proposed Rulemaking Mortality Tables for Determining Present Value - Proposed regulations under section 430 of the Code provide generally applicable mortality tables to be used in determining present value or making any computation for purposes of applying the minimum funding requirements for single employer qualified defined benefit pension plans pursuant to changes made by the Pension Protection Act of 2006 (Pub. L. No. 109-280). The regulations also provide guidance regarding an employer’s request to use its own plan-specific mortality tables. [HTML] [PDF]
- Treasury Regulation - REG-108508-08 - Determination of Minimum Required Pension Contributions [PDF]
- 2008-19 I.R.B. 923 (May 12, 2008)
- IRS Issues Plan Valuation Regulations For Single-Employer Defined Benefit Plans
- Getting PPA Funding Right
- Use of Credit Balance to Satisfy Quarterly Contribution Requirements May Have Unintended Consequences
- Effective Dates for Code Section 430 and the Code Section 430 Regulations
- More Proposed Regs Released for New Code section 430
- Quarterly contribution requirements and credit balances
- IRS Proposes Regs On Minimum Funding Contributions For Single-Employer Plans
- IRS issues proposed regs on minimum required contributions under PPA
Tuesday, April 1, 2008
Employee Plans News - Special Edition, April 2008
Wednesday, March 26, 2008
Agenda and Testimony Requests and Outlines for Hearing on Reasonable Contracts or Arrangements Under Section 408(b)(2)--Fee Disclosure
The DOL has posted the Agenda and Testimony Requests and Outlines for the Hearing on Reasonable Contracts or Arrangements Under Section 408(b)(2)--Fee Disclosure, which was rescheduled to March 31 and April 1.
Tuesday, March 25, 2008
DOL Proposed Regulation – Model Notice of Multiemployer Plan in Critical Status
29 CFR Part 2540 RIN 1210-AB26 DOL Proposed Regulation – Model Notice of Multiemployer Plan in Critical Status The DOL issued a model notice for multiemployer plans in critical status: Washington – The U.S. Department of Labor today announced a proposed regulation providing a model notice for use by multiemployer defined benefit pension plans to notify plan participants and others that their plan is in critical funding status. The proposed regulation is the result of the Pension Protection Act of 2006 (PPA) signed into law by President George W. Bush on August 17, 2006. The PPA amended the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code to require that sponsors of multiemployer defined benefit pension plans in critical status for a plan year provide notice of this status to participants, beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corp. (PBGC) and the Department of Labor. PBGC, created under ERISA to insure defined benefit pension plans, guarantees payment of basic pension benefits of affected workers and retirees. The notice must inform participants that their plan is in critical status and of the possibility that adjustable benefits may be reduced or even eliminated. The proposed regulation contains a model notice that may be used by plans to satisfy the notice requirement. The public may submit comments to the Labor Department at e-ORI@dol.gov or through the federal e-rulemaking portal at www.regulations.gov. Paper-based comments should be sent to the Office of Regulations and Interpretations, Employee Benefits Security Administration, Room N-5655, U.S. Department of Labor, 200 Constitution Avenue NW, Washington, DC 20210, Attention: Notice of Critical Status. The proposed regulation is to be published in the March 25 edition of the Federal Register. Related Links:
Saturday, March 22, 2008
Employee Plans News - Spring 2008 Edition
The IRS published Employee Plans News - Spring 2008 Edition. This edition contains the following articles:
- Recent Guidance that May Require Interim or Discretionary Amendments
- Determination Letters Coming Your Way - Announcement 2008-23
- Steve Miller Discusses Governmental Plans Roundtable
- ERPA is Moving Forward
- We're Glad You Asked!
- New PPA Guidance on Distributions
- Critical Priorities...With Monika Templeman
- EP Exam's Risk Modeling Project
- Economic Stimulus Payments: How You Can Help
- Highlights of the Retirement News for Employers
- Web Spins
- Employee Plans Published Guidance
- IRS Employee Plans Videos - Now Available Online
- The Corner of Forms & Pubs
- Written Plan Requirement for 403(b) Plans
- DOL Corner
- PBGC Insights
- "Interesting" Pension Guidance Issued
- Defined Benefit Plans - AFTAP Certification Needed as Early as April 1, 2008
- Calendar of EP Benefits Conferences
Thursday, March 20, 2008
IRS Notice 2008-37 - Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates
Part III --- Administrative, Miscellaneous, and Procedural IRS Notice 2008-37 - Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates. This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in March 2008; the 24-month average segment rates; the funding transitional segment rates applicable for March 2008; and the minimum present value transitional rates for February 2008. Related Links:
Treasury Regulation - REG-110136-07- Notice Requirements for Certain Pension Plan Amendments Significantly Reducing the Rate of Future Benefit Accrual
26 CFR Parts 1 and 54 [REG-110136-07] RIN 1545-BG48 Treasury Regulation - REG-110136-07- Notice Requirements for Certain Pension Plan Amendments Significantly Reducing the Rate of Future Benefit Accrual Proposed regulations under section 4980F of the Code provide guidance relating to a plan amendment that is permitted to be effective before the plan amendment’s applicable amendment date. The regulations would also reflect certain amendments made to section 4980F by the Pension Protection Act of 2006, Public Law 109-280 (120 Stat. 780). A public hearing is scheduled for July 10, 2008. This document contains proposed regulations that would provide guidance relating to the application of section 4980F of the Internal Revenue Code to a plan amendment that is permitted to reduce benefits accrued before the plan amendment's applicable amendment date. These regulations would also reflect certain amendments made to section 4980F by the Pension Protection Act of 2006, Public Law 109-280 (120 Stat. 780). These proposed regulations would affect sponsors, administrators, participants, and beneficiaries of pension plans. This document also provides a notice of a public hearing on these proposed regulations.
Related Links:
- Treasury Regulation - REG-110136-07- 2008-17 I.R.B. (April 28, 2008) - Notice Requirements for Certain Pension Plan Amendments Significantly Reducing the Rate of Future Benefit Accrual [PDF]
- Treasury Regulation - REG-110136-07- 2008-17 I.R.B. (April 28, 2008) - Notice Requirements for Certain Pension Plan Amendments Significantly Reducing the Rate of Future Benefit Accrual [HTML]
- 2008 -17 I.R.B. (2008)
Tuesday, March 18, 2008
Treasury Regulation REG–151135–07 - Multiemployer Plan Funding Guidance
26 CFR Part 1 [REG–151135–07] RIN 1545–BH39 Treasury Regulation REG–151135–07 - Multiemployer Plan Funding Guidance Proposed regulations under section 432 of the Code provide additional rules for certain multiemployer defined benefit plans that are in effect on July 16, 2006. The regulations affect sponsors and administrators of, and participants in, multiemployer plans that are in either endangered or critical status. The regulations are necessary to implement the new rules set forth in section 432 that are effective for plan years beginning after 2007. This document contains proposed regulations under section 432 of the Internal Revenue Code (Code). These proposed regulations provide additional rules for certain multiemployer defined benefit plans that are in effect on July 16, 2006. These proposed regulations affect sponsors and administrators of, and participants in multiemployer plans that are in either endangered or critical status. These regulations are necessary to implement the new rules set forth in section 432 that are effective for plan years beginning after 2007. The proposed regulations reflect changes made by the Pension Protection Act of 2006.
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