The Insider newsletter focuses on regulations, case law and policy, as well as providing in-depth, relevant research into benefits, retirement and HR issues.
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The Department of Labor recently issued interim final regulations detailing the fee and compensation information that certain service providers must disclose to retirement plan sponsors. The new disclosure requirements are intended to make it easier for defined benefit and defined contribution plan fiduciaries to prudently select and monitor service providers and plan investments. August 2010
Under a provision in the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act (the 2010 Act) passed earlier this year, funding requirements and benefit restrictions enacted by the Pension Protection Act of 2006 (PPA) do not apply to eligible charity plans until 2017. This change may cast a wider net than intended. August 2010
According to the Internal Revenue Service (IRS) July 2010 Special Edition of Employee Plans News, plan administrators of defined benefit and defined contribution plans will not be required to file Form 8955-SSA for the 2009 plan year until the IRS issues further guidance. The form reports plan participants who separate from service with a right to a deferred vested benefit. It replaces Schedule SSA, Annual Registration Statement for Deferred Vested Participants, from the Form 5500 annual return/report. August 2010
Legislative efforts to extend the expired COBRA premium subsidy have been derailed, and it’s not clear when or whether the legislation can be revived. Concern about the cost of the subsidy at a time of ballooning federal budget deficits prevailed over attempts by some lawmakers to extend the subsidy through the end of the year. July 2010
On June 25, President Obama signed the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act (H.R. 3962). The act replaces a scheduled 21% reduction in Medicare’s physician payment rates with a 2.2% increase for the period from June 1 to November 30, 2010. July 2010
During 2009, rising health care costs, rocky economic conditions and the specter of health care reform drove employers to seek new ways to manage costs and help their workers lead healthier lives. July 2010
Sponsors of U.S. retirement plans with Puerto Rican participants (including “dual-qualified” plans) have until the end of 2010 to eliminate some potential tax troubles. July 2010
On June 25, President Obama signed the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act (the Act) into law, thereby making further funding relief available to defined benefit (DB) plans. To advance discussions in the pension community, this analysis projects aggregate regulatory funded status and minimum required contributions for single-employer DB plans both with and without this latest relief. July 2010
The pension funding relief in the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act comes with conditions. Relief recipients that pay "excess employee compensation" or make certain dividend payments in stock redemptions must also make higher pension contributions. July 2010
Large employers have been rethinking their retirement plan configurations for some time. Over the last 10 years, many of them have shifted from defined benefit (DB) plans to defined contribution (DC) plans. A variety of motives have driven the shift — overcoming financial difficulties, remaining competitive in a global market, reducing expenses and minimizing risk. June 2010
In Notice 2010-06, the IRS announces a new correction program for nonqualified deferred compensation plans with document provisions that do not comply with Internal Revenue Code section 409A. May 2010
To help pay for health reform, the Patient Protection and Affordable Care Act (PPACA) imposes a $500,000 cap on deductions for compensation paid to employees and individual service providers at health insurance companies (even those not publicly traded). The new deduction limit applies to most forms of compensation, including performance-based pay, commissions and pay under certain existing contracts. May 2010
Health care reform established a $5 billion Early Retiree Reinsurance Program (ERRP) to pay a share of the health claims incurred by early retirees (along with their spouses and dependents) under employment-based health plans. May 2010
On May 20, the Senate passed the Restoring American Financial Stability Act (S. 3217) by a 59-39 vote. Along with taking other measures aimed at ensuring economic stability, the landmark financial reform addresses executive compensation and corporate governance practices, including say on pay, compensation committee and advisor independence, clawback requirements, additional proxy disclosures and majority election of directors. May 2010
In its response to the RFI, Towers Watson provides information and analysis, as well as suggestions for ways the government and pension plan sponsors can help retirees achieve a more financially secure retirement. May 2010
Acknowledging the link between pension relief and jobs, both the House and the Senate have introduced relief bills over the last few months. As the Memorial Day recess neared, the House and Senate were hoping to approve the American Jobs and Closing Tax Loopholes Act of 2010. May 2010
Two recent laws make important changes to the COBRA premium subsidy. Plan sponsors need to update their COBRA communications and reach out to COBRA vendors to ensure compliance. April 2010
The 2010 ERISA Expanded Reporting and Disclosure Requirements Calendar provides who-what-when-where reporting and disclosure information for single-employer pension and welfare plans under ERISA. April 2010
The U.S. Department of Labor (DOL) has proposed regulations that provide guidance regarding the statutory prohibited transaction exemption for investment advice added by the Pension Protection Act of 2006 (PPA). April 2010
In Battoni v. IBEW Local Union No. 102 Employee Pension Plan, the 3rd U.S. Circuit Court of Appeals held that an amendment to a collectively bargained welfare plan illegally reduced plan participants’ pension benefits. April 2010
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