More retirement-related regulatory news for plan sponsors, including links to detailed information.
IRS announces changes to determination letter program for qualified retirement plans
The Internal Revenue Service (IRS) has issued Announcement 2015-19, describing important changes to the determination letter program for qualified retirement plans.
The changes outlined will eliminate the staggered five-year determination letter remedial amendment cycles for individually designed plans and will limit the scope of the determination letter program for individually designed plans to initial plan qualification and qualification upon plan termination. The announcement also provides a transition rule with respect to the remedial amendment period for certain plans currently on the five-year cycle.
The IRS is requesting comments on specific issues relating to the implementation of these changes to the determination letter program.
To read the entire announcement, click here.
PBGC issues proposed rule to amend annual financial-actuarial information reporting
The Pension Benefit Guaranty Corporation (PBGC) is proposing to amend its regulation on annual financial and actuarial information reporting to codify provisions of the Moving Ahead for Progress in the 21st Century Act (MAP-21) and the Highway Transportation and Funding Act of 2014 (HATFA-14) and related guidance that affect reporting under ERISA section 4010.
The PBGC is proposing to limit the reporting waiver under the current regulation tied to aggregate plan underfunding of $15 million or less to smaller plans and to add reporting waivers for plans that must file solely on the basis of either a statutory lien resulting from missed contributions over $1 million or outstanding minimum funding waivers exceeding the same amount (provided the missed contributions or funding waivers were previously reported to the PBGC). The proposed rule also makes some technical changes.
To read the entire proposed rule, click here.
IRS updates guidance and FAQs for preapproved retirement plan
The IRS has updated its guidance and frequently asked questions (FAQs) for employers adopting preapproved retirement plans. The guidance and FAQs were updated after the IRS issued:
• Rev. Proc. 2015–36, which sets forth the procedures for issuing opinion and advisory letters regarding the acceptability under §§ 401, 403(a), and 4975(e)(7) of the Internal Revenue Code (Code) of the form of preapproved plans (that is, master and prototype and volume submitter plans)
• Announcement 2015-16, on the issuance of opinion and advisory letters for preapproved defined contribution plans for the second six-year cycle, deadline for employer adoption, and opening of determination letter program for preapproved plan adopters
To read the FAQs, click here.
The guidance is available at the following links:
• Types of preapproved retirement plans
• Deadline extended for preapproved defined benefit plans
• Preapproved plan submission procedures
DOL web page houses comment letters related to conflicts of interest rule
The U.S. Department of Labor (DOL) has a web page containing submitted comment letters on the fiduciary definition, conflicts of interest rule, which was re-proposed on April 14, 2015. The comment period closed on July 21, 2015.
To read the comment, click here.