Headlines about "Ret plans - amendments required, incl. EGTRRA"
Gathered from the web by the editors at BenefitsLink.com.
New 403(b) Regulations - Followed by a Stepped Up IRS Audit Program to Ensure Compliance
Excerpt: "The first stage in the IRS initiative came in June 2007, when the IRS launched an outreach project aimed at ensuring that school districts across the country are complying with the universal availability requirement. Roughly a month later, the IRS released the final 403(b) regulations, giving plans and plan sponsors until the beginning of next year to comply with new document and operational rules." (PLANSPONSOR.com; free registration required)
IRS's Employee Plans News, Summer 2008 (PDF)
14 pages. This edition includes the following articles: Steven T. Miller, TE/GE Commissioner, Speaks at Mid-Atlantic Benefits Conference; Form 5307 Has Been Revised; Forms & Pubs; Critical Priorities...With Monika Templeman; Maintaining Electronic Records for Employee Plans Team Audit (EPTA) Plans; Form 5500 Filing Tips - Are You a Multiemployer Plan?; Things to Remember - 2007 Forms 5500/5500EZ; Employee Plans Published Guidance; PBGC Insights; Calendar of EP Benefits Conferences. (Internal Revenue Service)
[Official Guidance] Text of Proposed IRS Regs on Accrual Rules for DB Plan Conversion to Cash Balance Formula (PDF)
6 pages. Excerpt: "The proposed regulations would provide a limited exception to the existing requirement under § 1.411(b)– 1(a)(1) to aggregate the accrued benefits under all formulas in order to determine whether or not the accrued benefits under the plan for participants satisfy one of the alternative methods under section 411(b)(1)(A) through (C). Under this limited exception, certain plans that determine a participant's benefits as the greatest of the benefits determined under two or more separate formulas would be permitted to demonstrate satisfaction of the 133-1/3 percent rule of section 411(b)(1)(B) by demonstrating that each separate formula satisfies the 133-1/3 percent rule of section 411(b)(1)(B)." (Internal Revenue Service)
[Guidance Overview] Compliance Checklist 2008 - For Plans That Are Not Subject to ERISA (PDF)
14 pages. Excerpt: "The Checklist incorporates requirements for Governmental and Nonelecting Church Plans, Non-ERISA 403(b) Programs, 457 Plans, and Nonqualified Executive Benefit Plans, and provides information on the materials that you will need to file, filing due dates, and agencies to which the filings should be made." (Prudential Retirement)
[Guidance Overview] Compliance Checklist 2008 - For Plans That Are Subject to ERISA (PDF)
42 pages. Excerpt: "The Checklist incorporates Defined Benefit, Defined Contribution and ERISA 403(b) requirements and provides information on the materials that you will need to file, filing due dates, and agencies to which the filings should be made." (Prudential Retirement)
White House Memo Ordering Regulations Cutoff Doesn't Apply to IRS, Officials Say
Excerpt: "A recent White House memorandum directing agency heads to finalize regulations by November 1, 2008 will not apply to the IRS, according to Treasury Department officials. However, the memorandum, which was issued with little fanfare or explanation, does not expressly exclude the IRS." (Wolters Kluwer)
IRS Updating Guidance to Provide Corrective Measures for 403(b) Plans, Official Says
Excerpt: "The IRS is in the process of updating its Employee Plans Compliance Resolution System (EPCRS) program and expects to issue a new revenue procedure in the next couple of months that will begin addressing the new regulatory requirements for 403(b) plans, IRS tax specialist Robert Architect said at a D.C. Bar program meeting on May 27, 2008." (Wolters Kluwer)
Key Funding Rule Change at Stake in Legislation Aimed to Fix Pension Law Problems
Excerpt: "Federal legislation to correct dozens of technical errors in the Pension Protection Act of 2006 is mired on Capitol Hill as legislators fight over what kinds of additional provisions should be included." (Pensions & Investments)
Current Pension Legislative and Regulatory Outlook
Excerpt: "In this article we survey current pension policy initiatives both in Congress and in the government agencies." (JPMorgan Chase & Co.)
[Guidance Overview] Listing of IRS Published Guidance for January - May 2008
The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements. (Internal Revenue Service)
[Guidance Overview] Latest IRS Guidance Addresses PPA '06 Provisions Related to Distributions
Excerpt: "Internal Revenue Service (IRS) Notice 2008-30 uses a question-and-answer format to provide guidance with respect to certain distribution-related provisions of the Pension Protection Act of 2006 (PPA'06) that become effective in 2008. The Notice includes guidance on rollovers to Roth individual retirement accounts (IRAs), the Qualified Optional Survivor Annuity (QOSA) and interest assumptions for lump-sum distributions. Although the payment of gap-period earnings on distributions of excess deferrals is not directly related to PPA'06, the Notice also provides guidance on those payments." (The Segal Group, Inc.)
Text of Pension Protection Act ERISA Amendments of 2008 (PDF)
59 pages. Excerpt: "To make technical corrections to the Pension Protection Act of 2006 relating to the Employee Retirement Income Security Act of 1974, and for other purposes." (U.S. House of Representatives via American Benefits Council)
[Guidance Overview] New Disclosure/Reporting Requirements for ERISA Plan Service Providers
Excerpt: "The Department of Labor (DoL) is expected to release its final regulations on proposed amendments to ERISA §408(b)(2) later this summer. The new regulations, which are expected to become effective January 1, 2009, will shift the burden of providing documentation demonstrating compliance with ERISA's prohibited transaction rules from plan sponsors to service providers, including broker-dealers and registered investment advisors (RIAs)." (PPA Fiduciary Adviser Legal and Compliance Report)
[Guidance Overview] IRS Updates Staggered Remedial Amendment Cycle Process (PDF)
6 pages. Excerpt: "This information applies to qualified defined benefit and defined contribution plans, including multiemployer plans, governmental plans and non-electing church plans. Currently, it does not apply to ERISA 403(b) plans, non-ERISA 403(b) programs, or section 457(b) plans." (Prudential's Pension Analyst)
IRS Priority Guidance Update
Excerpt: "Published 01/22/2008 in IRB 2008-3 as Announcement 2008-2 (12/21/2007)." (McKay Hochman Co., Inc.)
[Guidance Overview] Code Section 415 Amendment Timing
Excerpt: "Upon working with the Code §415 amendments, we discovered an anomaly that we expect could impact some employer plans. The problem develops because plan amendment deadlines are determined with reference to the plan year and the employer's tax year. The Code §415 Regulations, however, start the amendment period with reference to the plan's limitation year. A problem can arise if the limitation year is not consistent with either the plan year or the employer's tax year." (Rich Hochman via McKay Hochman Co., Inc.)
[Guidance Overview] IRS Opens Compliance and Enforcement Initiative for Government Plans (PDF)
Excerpt: "[T]he IRS wants government plans to take advantage of the mechanisms under the Employee Plans Compliance Resolution System (EPCRS) for correcting plan errors and to make plans aware of its increasing emphasis on enforcement." (Buck Consultants)
[Guidance Overview] The Intricate Web of Plan Amendments Explained
Excerpt: "The three main categories of plan amendments that employers need to be aware of are generally described as follows: . . . ." (White & Case LLP)
[Guidance Overview] Public Agencies -- Uncle Sam Wants You (To Amend Your Retirement Plan Document)
Excerpt: "We recommend that governmental employers that wish to comply only with the tax qualification rules applicable to them simply adopt an individually designed plan document expressly intended for a governmental sponsor. Any governmental employer that maintains an individually designed retirement plan must review the status of its plan, update both its operation and plan document compliance, and have the plan submitted to the IRS for a determination letter by January 31, 2009." (Chang Ruthenberg & Long)
[Guidance Overview] Winter 2008 Edition of IRS 'Retirement News for Employers' (PDF)
10 pages. Articles include 'Keeping Your Plan in Compliance' and 'Using a Plan Amendment for Correction in the Self-Correction Program." (Internal Revenue Service)
[Guidance Overview] Special Edition of IRS 'Employee Plan News': Overview of Governmental Plans Roundable Held 4/22/2008 (PDF)
Excerpt: "The roundtable was the first step in establishing a dialogue between the IRS and the governmental plans community in an effort to ensure that governmental entities understand the tax qualification requirements applicable to their plans and are aware of the tools and resources available to assist them in ensuring ongoing compliance. IRS representatives acknowledged that there is very little history examining governmental plans. They want to better understand the issues and barriers these plans face in attempting to satisfy tax qualification requirements." (Internal Revenue Service)
[Guidance Overview] Final 403(b) Regulations Make 2008 a Key Planning Year
Excerpt: "This article focuses on a number of significant changes and trends reflected in the final §403(b) regulations and related guidance that impact plan design and implementation decisions that should be made in 2008." (Groom Law Group)
[Opinion] American Society of Pension Professionals & Actuaries' Comments on EPCRS Provisions That Apply to Retroactive Plan Amendments (PDF)
Excerpt: "On April 25, 2008, ASPPA submitted a comment letter to the IRS and Treasury discussing current methods available to plan sponsors through EPCRS to retroactively correct certain document errors, and providing additional examples to assist plan sponsor and practitioners." (American Society of Pension Professionals & Actuaries)
TIAA-CREF Publishes 403(b) Guide for Plan Sponsors
Excerpt: "TIAA-CREF has released a guide to new 403(b) regulations. A news release said the publication, '403(b) Plan Fundamentals - Your Guide to Compliance,' includes: At a Glance - An overview of new rules, plan sponsors' responsibilities, and a checklist for compliance; The Details - In-depth information about plan documents, non-discrimination requirements, loans and distributions, information sharing agreements, plan documents, contribution limits, Form 5500 and the Employee Retirement Income Security Act (ERISA), and fiduciary liability; and Resources – Frequently Asked Questions, a glossary, and reference materials.' (PLANSPONSOR.com; free registration required)
[Guidance Overview] Employee Plans Compliance Resolution System Update Expected 'Soon'
Excerpt: "An updated version of Rev. Proc. 2006-27 . . . will not be a major overhaul of the old procedure, . . . but will contain a number of smaller changes that taken together will have a significant effect on the program." (Wolters Kluwer)
[Guidance Overview] IRS Proposes Amendments to 204(h) Rules
Excerpt: "The IRS proposed a number of changes to the participant advance notice requirements under Section 204(h) of ERISA that are required for certain pension plan amendments." (Towers Perrin)
[Guidance Overview] IRS Provides Timeline for Adoption of Certain Pre-Approved EGTRRA Plan Documents (PDF)
2 pages. Excerpt: "On March 31, 2008, the IRS issued opinion and advisory letters for most prototype and volume submitter defined contribution plans that were restated to comply with the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA)." (Prudential Retirement)
Small Change in Pension Bill Could Make a Big Dollar Difference
Excerpt: "The House and Senate are trying to settle on a final bill for technical corrections to the Pension Protection Act. Most are minor, but one drawing fire centers on an accounting technique called smoothing." (Workforce Management; free registration required)
[Guidance Overview] Important Update on EGTRRA Restatements
Excerpt: "Employers who are entitled to use the 6-year cycle for pre-approved defined contribution plans must restate their plans by April 30, 2010 (See IRS Announcement 2008-23). This is also the date by which such employers need to submit their plans for determination letters, if desired. The submission of pre-approved plans is generally made using Form 5307." (SunGard Corbel LLC)
[Guidance Overview] Notice 2008-30 - Guidance on PPA Changes to Distribution Rules for 2008
Excerpt: "Notice 2008-30 provides guidance on distribution-related provisions of the Pension Protection Act of 2006 (PPA) that are effective in 2008, including rollovers from eligible retirement plans to Roth IRAs, additional survivor annuity options, and interest rate assumptions for lump sum distributions. The notice also provides guidance regarding plan amendments for certain gap-period earnings." (McKay Hochman Co., Inc.)
Defined Benefit Notice Suit Survives Challenge
Excerpt: "A federal judge in Texas has ruled that the statute of limitations clock has not expired for defined benefit plan participants' assertions relating to the required plan amendment notice." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Chart of New Multiemployer Plan Disclosures and Communications Required by Pension Protection Act of 2006 (PDF)
1 page. Excerpt: "The Pension Protection Act of 2006 (PPA) requires multiemployer pension plans to make a number of significant new disclosures to plan participants and beneficiaries, employee representatives, unions, employers, and regulators such as the IRS, the Department of Labor (DOL), and the PBGC. This 2008 Disclosure and Communications Calendar can help you get these important new notices out on time and on target." (Milliman)
[Guidance Overview] Listing of IRS Published Guidance for January - March 2008
The target page links to guidance published by the Service relating to retirement plans: Treasury Regulations; Revenue Rulings; Revenue Procedures; Notices; and, Announcements. (Internal Revenue Service)
[Guidance Overview] New 403(b) Regulations
Excerpt: "The complicated 403(b) market needed updating in order to be more easily managed by both school districts and the IRS. Since 1964, the 403(b) rules had been updated but had not gone through a complete overhaul. In July 2007, the IRS finalized the first comprehensive 403(b) regulations in 43 years. These new rules require a written plan that will standardize each district's 403(b) providers. While providers and employers have until Jan. 1, 2009, to be fully compliant, the changes have already begun." (Financial Planning)
[Guidance Overview] IRS Expected to Issue Opinion Letters and Advisory Letters to Document Providers Who Timely Filed Their Plan Documents for EGTRRA (PDF)
1 page. Excerpt: "The Internal Revenue Service (IRS) has issued Announcement 2008-23 relating to the issuance of Opinion and Advisory Letters and the opening of the EGTRRA determination letter program for IRS pre-approved defined contribution plans. This Announcement affects document providers of pre-approved defined contribution plans and plan sponsors using one of these plans." (Transamerica Center for Retirement Studies)
[Guidance Overview] Employee Plans News, Spring 2008 (PDF)
16 pages. Excerpt: "This edition includes articles such as Recent Guidance that May Require Interim or Discretionary Amendments; Determination Letters Coming Your Way; Steve Miller Discusses Governmental Plans Roundtable; New PPA Guidance; Exam's Risk Modeling Project; Economic Stimulus Payments; Written Plan Requirement for 403(b) Plans; 'Interesting' Pension Guidance Issued; and AFTAP Certifications." (Internal Revenue Service)
[Guidance Overview] IRS Date for Issuing Letters on Pre-Approved Plans, Schedule for Plan Adoptions, and Details for Submissions
Excerpt: "EBIA Comment: Many employers use pre-approved plan documents for their qualified retirement plans, including 401(k) plans. While these documents can limit employers' flexibility in setting plan terms, they are inexpensive and may offer other advantages, such as eliminating the need for individual determination letter submissions. Following the IRS's release of the pre-approved plan opinion and advisory letters, affected employers will finally be able to adopt EGTRRA-approved restatements and, if they choose, submit their restated plans for individual determination letters." (Employee Benefits Institute of America)
[Guidance Overview] IRS/Treasury Proposed Regulations Concerning Notice Required for Pension Plan Amendments
Excerpt: "The Treasury Department and Internal Revenue Service have issued proposed regulations that would provide guidance concerning application of the notice requirements of Code Sec. 4980F and section 204(h) of ERISA to a plan amendment that is permitted to reduce benefits accrued before its applicable amendment date. The proposed regulations would impact pension plan sponsors, administrators, participants and beneficiaries." (CCH Incorporated)
Hewitt Survey Shows Plan Funding and Employee Participation Will Be Focus in 2008
Excerpt: "Hewitt's study of 190 mid- to large-sized U.S. companies revealed that new funding rules for pensions and increased scrutiny of retirement plan operations are prompting more companies to administer their defined benefit plans with an eye to reducing plan risk of underfunding due to investment losses in 2008." (Wolters Kluwer)
Retirement Plan Sponsors to Focus on Risk Management, Automation, Employee Accountability in 2008
Excerpt: "Hewitt's study of 190 midsize and large U.S. companies revealed that the new funding rules for pension plans enacted by the Pension Protection Act of 2006 (PPA) and increased scrutiny of retirement plan operations in general are prompting more companies to take additional steps to administer their plans within a risk framework in 2008." (Wolters Kluwer)
[Official Guidance] Text of Proposed IRS Regs: Requirements for Certain Pension Plan Amendments Significantly Reducing the Rate of Future Benefit Accrual (PDF)
26 pages. Excerpt: "Section 4980F sets forth the requirements for providing notice to certain affected persons when a plan significantly reduces future benefit accruals. A notice required under section 4980F of the Code or the parallel rules in section 204(h) of [ERISA] is referred to as a 'section 204(h) notice.' These proposed regulations would set forth timing rules for providing a section 204(h) notice for a plan amendment that is permitted to be effective before the applicable amendment date. In addition, the regulations provide guidance relating to changes made in section 4980F by the Pension Protection Act of 2006 . . . ." (Internal Revenue Service)
[Guidance Overview] Employee Benefits & Executive Compensation Webinar on PPA Compliance
Excerpt: "On March 6, Drinker Biddle and Watson Wyatt Worldwide presented a webinar on how plan sponsors will comply with the Pension Protection Act of 2006 (PPA), and how they will face the monumental task of implementing the PPA requirements in 2008. . . . [The target page has a link to view the presentation as well as hear the audio portion of this webinar.]" (Drinker Biddle & Reath LLP)
[Guidance Overview] House Passes PPA Technical Corrections Bill
Excerpt: "The U.S. House of Representatives late on March 12, 2008 passed a bill (H.R. 3361) to make a series of 'technical' corrections to the Pension Protection Act ('PPA') of 2006 (P.L. 109-280). The House-passed bill differs slightly from a PPA technical corrections bill (S. 1974) the Senate approved in December 2007. That means the House and Senate bills will need to be reconciled, a process expected to begin in April." (Deloitte via BenefitsLink.com)
[Guidance Overview] IRS May Have Ended Form 5307 Roulette with Announcement 2008-23
Excerpt: "The IRS . . . announced some important changes to when Form 5300 should be filed instead of Form 5307 by a plan using a prototype or volume submitter plan document, and which Cumulative List will be used to review a prototype or volume submitter plan document filed using Form 5300." (Pension Protection Act Blog)
[Guidance Overview] New Federal Regulations for 401(k) and Other Defined Contribution Plans (PDF)
2 pages. (Milliman)
[Guidance Overview] PPA Check Up
Excerpt: "In this article, we review strategic decisions confronting, and critical choices available to, plan sponsors in complying with new PPA rules generally and the benefit restriction certification requirements specifically." (JPMorgan)
[Official Guidance] IRS Announcement 2008-23: IRS to Begin Issuing Letters for M&P Plans Filed for Approval of EGTRRA Changes (PDF)
4 pages. Announcement 2008-23 states that the Service will soon issue opinion and advisory letters for pre-approved master and prototype and volume submitter defined contribution plans that were timely filed with the Service to comply with the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107-16, and other changes in plan qualification requirements listed in Notice 2004-84, 2004-2 C.B. 1030. (Internal Revenue Service)
[Opinion] American Benefits Council Letter Urging Asset Smoothing Clarification with PPA Technical Corrections (PDF)
2 pages. Excerpt: "I am writing on behalf of the members of the American Benefits Council (Council) regarding legislation to clarify the 'asset smoothing' rules for defined benefit pension plan funding, since such legislation may be considered with the Pension Protection Act of 2006 (PPA) technical correction bill (H.R. 3361) this week." (American Benefits Council)
Text of Pension Protection Technical Corrections Act, H.R. 3361 (PDF)
54 pages. (U.S. House of Representatives via American Benefits Council)
House Ways and Means Committee Description of the Pension Protection Technical Corrections Act, H.R. 3361 (PDF)
19 pages. (U.S. House Wasy and Means Committee via American Benefits Council)
March 11, 2008 Issue of IRS 'Employee Plans Bulletin' -- Info About Governmental Plans Roundtable (PDF)
1 page. Describes a meeting on April 22 in Washington; space is limited to 52 participants. (Internal Revenue Service)
[Official Guidance] Text of IRS Notice 2008-30: Certain Disribution-Related Provisions of PPA That Are Effective in 2008 (PDF)
10 pages. Excerpt: "This notice [provides] guidance on amending plans to require that distribution of excess deferrals includes earnings from the end of the taxable year to the date of distribution ('gap-period' earnings). . . . The sections of PPA '06 addressed in this notice are § 824 (relating to rollovers from eligible retirement plans to Roth IRAs), § 1004 (relating to additional survivor annuity options), and § 302 (relating to interest rate assumptions for lump sum distributions)." (Internal Revenue Service)
[Guidance Overview] Handling by Retirement Plans of Post-Severance Payments: Action Needed (PDF)
3 pages. Excerpt: "The Treasury Department issued revised final regulations under § 415, which new rules are effective for plan years beginning on and after January 1, 2008. (For non-calendar plan years, the regulations are effective for years beginning on or after July 1, 2007.) . . . . For 401(k), 457(b) and 403(b) plans that allow employees to direct some of their pay into plans, the new rule means that amounts paid after employment terminates may not be deferred and contributed, even if it is W-2 pay, unless an exception applies (see below)." (The ERISA Law Group, P.A.)
[Official Guidance] From IRS: 'Retirement News for Employers' Winter 2008 Edition (PDF)
Excerpt: "How Much Can You Deduct in Your Retirement Plan?; We're Glad You Asked!; New of the Web; Keeping Your Plan in Compliance; Using a Plan Amendment for Correction in the Self-Correction Program; Recent Guidance; The Filing Cabinet; IRS Employee Plans Videos - Now Available Online" (Internal Revenue Service)
[Guidance Overview] Discussion of PPA Funding-Related Effective Dates as Revised by IRS Notice 2008-21
Excellent. (JPMorgan)
Video from IRS: Fixing Plan Mistakes Found During an IRS Audit
Directed to employers. Excerpt: "IRS EP Examinations Director discusses what happens when EP Agents find mistakes while examining retirement plans.' (4:45 min.) (Internal Revenue Service)
[Guidance Overview] IRS Updates Proposed Effective Date for Certain PPA Funding Regulations
Excerpt: "For employers who choose not to follow the relevant proposed regulations for 2008 plan years, the notice provides certain specific guidelines on what will constitute a 'reasonable interpretation' of the PPA statutory provisions. The notice also provides a special transition rule for applying the PPA benefit restrictions to small plans that use the last day of the plan year as the valuation date for each of the plan years beginning in 2006, 2007, and 2008." (Deloitte via BenefitsLink.com)
[Guidance Overview] IRS Delays Effective Date of Regs on Funding and Benefit Restrictions for Single-Employer Pension Plans
Excerpt: "The delay in the effective date of the regulations and the opportunity to use a reasonable interpretation of the law is welcome. This is especially true for the benefit restriction rules, which would be difficult to administer following the detailed requirements of the proposed regulations." (The Segal Group, Inc.)
[Guidance Overview] Qualified Retirement Plans - Cycle C Applications Accepted Beginning February 1, 2008
Excerpt: "Effective February 1, 2008, IRS will begin accepting determination letter applications for Cycle C qualified retirement plans. Cycle C plans are individually-designed plans that are sponsored by an employer with an EIN ending in 3 or 8. Governmental plans – including governmental multiemployer and multiple employer plans – are also Cycle C plans." (Deloitte via BenefitsLink.com)
[Guidance Overview] Employee Benefits as of January 24, 2008 (PDF)
5 pages. This edition includes: A Look at ERISA Litigation: Preemption of San Francisco's Health Reform Law; Qualified Plan Queries: IRS Informally Indicates No Redlining of Plans Required for Cycle B Submissions; EEOC Regulations Resolving the Erie County Issue; Exec Comp Corner: SEC Comments on Year 1 Compensation Disclosures; and, Payroll Tax & Fringe Benefit Pointers: Reporting Settlement Payments to Claimants and Their Law Firms. (Miller & Chevalier Chartered)
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