More retirement-related regulatory news for plan sponsors, including links to detailed information.
IASB publishes narrow-scope amendments to IAS 19 employee benefits
The International Accounting Standards Board (IASB) has published narrow-scope amendments to IAS 19 employee benefits entitled “Defined benefit plans: Employee contributions (Amendments to IAS 19).” The narrow-scope amendments apply to contributions from employees or third parties to defined benefit (DB) plans. The objective of the amendments is to simplify the accounting for contributions that are independent of the number of years of employee service, for example, employee contributions that are calculated according to a fixed percentage of salary.
The issue originated from two submissions to the IFRS Interpretations Committee, which recommended that the IASB amend the standard. The amendments are effective from July 1, 2014, with earlier application permitted.
The official press release can be read here.
IRS update: “Failure to adopt a written 403(b) plan: – fixing plan mistakes”
The Internal Revenue Service (IRS) has updated its “Failure to adopt a written 403(b) plan – fixing plan mistakes” web page.
All 403(b) arrangements must maintain a “written plan” and operate according to the terms of that plan. “Written plan” can mean having several documents that outline all necessary plan terms or a single document.
What to do if a written plan has not been adopted by the deadline: Generally, the 403(b) plan sponsor had to satisfy the written plan requirement by January 1, 2009. However, plan sponsors could have taken advantage of the December 31, 2009, extended deadline in Notice 2009-3 to meet the written plan requirements if:
• A written 403(b) plan was adopted by December 31, 2009, intended to satisfy the requirements of Internal Revenue Code Section 403(b) (including the final regulations) effective as of January 1, 2009
• The plan operated during 2009 according to a reasonable interpretation of IRC Section 403(b) (including the final regulations)
• Best efforts were made by the end of 2009 to retroactively correct any failure during the 2009 calendar year, ensuring a plan had operated according to its written terms.
If you didn’t meet the deadline for complying with the written plan requirement, you can fix the mistake by completing a Voluntary Correction Program submission.
To view the entire web page, click here.