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Regulatory Compliance
As a vital safety net for millions of pension plan participants and retirees, the Pension Benefit Guaranty Corporation is facing some difficult challenges. A recent report by the Congressional Research Service (CRS) puts those challenges in comprehensive, and sharper, relief.
In “Pension Benefit...
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The IRS is conducting a study of how burdensome it is for pension plan sponsors to fulfill tax reporting requirements with which they must comply. It will be conducted throughout 2019.
In response to reports the IRS received that these requirements exact a high cost in expenditure of time and...
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A new report claims that participants and plan sponsors are keen on ESG – but apparently not enough to do much about it.
The report, by Cerulli Associates, cites a 2018 survey of 1,000 active 401(k) plan participants among which “more than half” agreed with the statement, “I prefer to invest in...
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Offering lump sum windows to pension recipients recently got a green light of sorts. But not everyone is convinced that that’s a wonderful thing, and suggest that lump sums may not be exactly a panacea.
The IRS in Notice 2019-18 said that it no longer plans to amend the required minimum...
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Concluding that “DOL’s Final Rule stretches the definition of ‘employer’ beyond what ERISA’s text and purpose will bear,” a federal judge has thrown the Labor Department’s association health plan rule for a loss.
The association health plan (AHP) rule, finalized last June, claimed to make...
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A federal appeals court has affirmed summary judgment in a class action suit involving 270,000 plan participants across more than 13,000 plans.
The suit was filed in 2015 by plaintiff John Teets, a participant in the Farmers’ Rice Cooperative 401(k) Savings Plan, which had contracted with Great-...
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Ultimately, a retirement plan exists to support the account holders and their dependents and beneficiaries. So distributions are of key importance — but that doesn’t mean that handling them is always smooth. A recent blog entry offers some ideas on how to handle difficult situations concerning that...
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To outsource or not to outsource: That is the question. Okay, that’s not what the Bard of Avon wrote. But it is the focus of a recent blog entry that outlines the advantages and disadvantages of outsourcing decisions about how a retirement plan’s funds are to be invested.
“The responsibility for a...
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The IRS on March 26 updated its Operational Compliance List for compliance in 2019. The list is intended to help plan sponsors and practitioners achieve operational compliance by identifying changes in qualification requirements effective during a calendar year.
The Operational Compliance List...
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The Pacific Rim, a place where it’s a bit less unusual than others for new land to explode into existence, is adding to the state-sponsored retirement plans earthquake. Add Hawaii and Washington to the states whose legislatures have or are considering legislation that would create state-sponsored...
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The IRS has updated the Mortality Improvement Rates and Static Mortality Tables for Defined Benefit Pension Plans for 2020. The updated rates and tables are contained in Notice 2019-26, released on March 22.
Notice 2019-26 specifies updated mortality improvement rates and static mortality tables...
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The Federal Trade Commission (FTC) is considering amendments to cybersecurity rules that could have an impact on retirement plan professionals.
The FTC voted 3-2 to propose amendments to the Standards for Safeguarding Customer Information, which became effective on 2003 and requires that financial...
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Summary plan descriptions (SPDs) are not optional — at least not for plans to which ERISA applies. And that includes retirement plans. A recent blog entry discusses SPD requirements and how they relate to retirement plans, participants and beneficiaries.
In “Summary Plan Descriptions: You Gotta...
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If you send the IRS a Voluntary Compliance Program (VCP) submission on paper on April 1, it will be returned to you. But it won’t be an April Fools Day joke.
Beginning April 1, 2019, the IRS will only accept VCP submissions that are made electronically through Pay.gov. It will return VCP...
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The IRS has issued tables concerning covered compensation under Internal Revenue Code Section 401(l)(5)(E) and Treas. Reg. §1.401(l)-1. The data is contained in Revenue Ruling 2019-6.
These tables provide information on covered compensation based on calendar year of birth and Social Security...
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Some employers find that financial wellness programs have much to offer: informing and empowering employees to better prepare for their current and future financial security, as well as enhancing their relationship with their employees. And at a comparatively low cost, to boot. A recent article...
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The IRS announced on March 7 that victims of the severe storms, tornadoes and straight-line winds that took place on March 3, 2019 in Alabama may qualify for some forms of tax relief.
Where and to Whom it Applies
The relief applies to:
individuals who reside or have a business in Lee County,...
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In recent weeks, the headlines have been full of stories about tax refunds – or, perhaps more accurately, the lack of tax refunds.
It’s the kind of thing that might not normally find its way into the headlines, but this particular situation has struck a chord – both because it includes people who...
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The mail came! There’s a statement showing growth in the retirement account. There’s another showing that a debt that accumulated isn’t getting any better. Tempting… but a recent blog entry argues that using some retirement plan funds to satisfy a debt is a siren song.
In “Why Borrowing from a...
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Multiple employer plans (MEPs) are not new. But what is new is the attention they are receiving and the possibility that they could be more widely available. A recent analysis offers a look at MEPs and what the results of making open MEPs possible could mean.
In “Multiple Employer Plans and Their...
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