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2001
Manage | s y s c o m : g m

On December 7, 2001, ASPPA provided comments to the IRS regarding the disposition of account balances for missing participants in defined contribution plans. ASPPA stated that it believes that guidance from the Service concerning the proper disposition of account balances for missing participants, particularly in the context of terminating defined contribution plans, is urgently needed. [Comment]

On November 20, 2001, ASPPA issued comments regarding the appropriateness of further transitional relief with respect to the deadline for using the newly revised 5300 Forms is appropriate. In light of the delayed release of the new forms, the cut-off date for using the old forms, as indicated in Announcement 2001-109, should be extended, at a minimum, an additional three months.[Comment]

On November 15, 2001, GAC sent a letter to the IRS to emphasize the importance of IRC Section 414(k) accounts in promoting pension portability and to request that the Service reconsider the guidance.[Comment].

On October 1, 2001, ASPPA requested comments regarding the Form 5500 and Schedules. We appreciate the several improvements already made in the organization of the general instructions for the 2000 Form 5500 Series, including among other changes, better organization of the instructions related to direct filing entities (DFEs). Although, reporting on DFEs is still an area of some confusion. We also appreciate the reinstatement of the prior rule that allows filing for a short plan year on the currently available form. We have two ongoing concerns regarding the Form 5500 Series, including some questions and suggestions which we would like you to consider. [Comment]

On August 13, 2001, ASPPA issued comments supplementing ASPPA's April 17, 2001, comments regarding the Proposed Regulations under section 401(a)(9) of the IRC. This new letter addresses: (1) the partially retroactive application of the final regulations; (2) the handling of TEFRA elections; and (3) the use of term certain annuities. [Comment]

On August 8, 2001, ASPPA issued comments regarding the issuance of Revenue Procedure 2000-41, which updates the requirements to obtain approval of a change in funding method. We believe that the guidance represents a positive step in dealing with this complex issue. One particularly problematic issue remains, however: that the change of a calendar year valuation date due to a change in plan year is a change in funding method which requires IRS approval under Rev. Proc. 2000-41. We submit that this should not be the case. [Comment]

On August 7, 2001, ASPPA's Actuarial/PBGC subcommittee reviewed the new Form 1-EZ and the new Schedule A and viewed the changes as positive and helpful.[Comment]

On August 6, 2001, ASPPA issued a letter strongly supporting the effort by the Department of Labor, and particularly the PWBA, to permit plan sponsors and administrators to take advantage of new information technologies in distributing certain required documents to plan participants.[Comment]

On May 29, 2001, ASPPA requested that the Department of Labor provide a blanket extension of time to file the 2000 Form 5500 Series, similar to the transition-year extension granted on March 22, 2000 for the 1999 annual return/report forms. [Comment]

On April 17, 2001, ASPPA commented on IRS Proposed Regulations under section 401(a)(9) of the Internal Revenue Code (Code). ASPPA submitted comments regarding: (1) effective dates and use of the model amendment; (2) establishment of separate accounts; (3) the identification of beneficiaries and the ability to split trusts after the participant's death; and (4) application of the proposed rules to 403(b) plans. [Comment]

On March 7, 2001, ASPPA responded to the PBGC's request for comment on how to make benefit determinations for cash balance and hybrid plans at plan termination.[Comment].

On February 23, 2001, ASPPA responded to DOL's request for information regarding disclosure of obligations of fiduciaries of employee benefit plans subject to Title I of ERISA.  The input was requested with respect to both pension plans (including both defined contribution and defined benefit plans) and welfare plans (particularly health and disability plans).  [Comment]

The DOL requested comments regarding the agenda for the 2001 SAVER Summit, from organizations that have a mission to educate American workers about the importance of saving for retirement and ways to achieve retirement security.  ASPPA offered the following comments and recommendations regarding the agenda - [Comment]

ASPPA wrote the IRS to offer suggestions on the priorities for guidance under the 2001 guidance priority list issued jointly by Treasury and IRS (Notice 2000-63, Comments on Items for Year 2001 Published Guidance Priority List). [Comment]

On January 5, 2001, ASPPA filed with the Internal Revenue Service detailed comments on proposed regulations governing new comparability plans. In these comments ASPPA argues that the proposed rules applicable to combination defined contribution/defined benefit plans will likely result in excessive contribution requirements leading small businesses to abandon their defined contribution plans to the detriment of younger workers. The comments also address a number of technical issues raised by the proposed regulations. [Comment]