Comments:

ASPPA and NTSAA submitted a comment letter to the IRS on June 25, 2010, to  request limited relief with respect to hardship distributions from certain 403(b) contracts.   Due to the recent economic downturn, there has been a significant increase in the number of requests for financial hardship distributions from contracts issued by “de-selected” 403(b) providers under Revenue Procedure 2007-71. Compliance with the final 403(b) regulation standards to process a hardship distribution is problematic for “de-selected” contracts.  Consistent with marketplace practices prior to the final 403(b) regulations, the letter recommends that hardship distributions from “de-selected” 403(b) contracts be permitted  upon a participant’s certified statement as to the existence of the financial hardship provided certain other requirements are satisfied. [Comment]

On June 8, 2010, ASPPA submitted comments to the IRS with respect to the safe harbor model notice to participants under IRC §402(f). The comments provide recommendations for areas needing clarification as well as ways the model language could be improved [Comment]

On June 4, 2010, ASPPA submitted comments to the IRS requesting that guidance be issued with respect to the impact of mid-year plan design changes on the status of a safe harbor 401(k) plan. ASPPA had previously provided comment to the IRS on this issue on November 16, 2007. [Comment]




Testimony:

On October 28, 2009, NAIRPA submitted comments for the record to the Senate Special Committee on Aging’s hearing entitled, “Default Nation: Are 401(k) Target Date Funds Missing the Mark?” [Comment]

On July 23, 2009, Robert Richter, Vice President of SunGard, testified on behalf of ASPPA before the U.S. Department of Labor Advisory Council on Employee Welfare and Pension Benefit Plans on promoting retirement literacy and security by streamlining disclosures to participants and beneficiaries. [Testimony]


Legslative: 

On August 27, 2009, Congressman Earl Pomeroy (D-ND) release a discussion draft of his proposals for defined benefit pension plan funding relief. [draft.pdf] [summary.doc]

On June 24, 2009, the House Education and Labor Committee reported H.R. 2989 - The 401(k) Fair Disclosure and Pension Security Act of 2009, as amended, to the House by a vote of 29 to 17.  The bill includes defined benefit plan funding relief, as well as fee disclosure and investment advice provisions. [HR 2989 as amended]


Regulatory:

On April 30, 2009, PBGC issued Technical Update 09-3 providing missed quarterly contribution reporting relief to small plans. [PBGC Technical Update 09-3] 

On April 6, 2009, the IRS issued Notice 2009-22 providing interim rules regarding asset valuation methods that are permitted to be used by single employer defined benefit pension plans for minimum funding purposes pursuant to changes made by the Worker, Retiree, and Employer Recovery Act of 2008. [Notice 2009-22]