The Department of Labor issued a final rule on the overtime pay requirements of the Fair Labor Standards Act (FLSA) for most “white-collar employees,” effective December 1, 2016. Although the final rule focuses on paying time-and-a-half for hours worked in excess of 40 per week, it includes other new requirements that could have implications for sponsors of retirement plans (primarily 401[k] and similar arrangements), depending on the inclusion or exclusion of overtime pay and/or bonuses in the plan’s formula for employer contributions. The final rule also might affect a retirement or other benefit plan’s participation base, if salaried (exempt) employees are treated differently from hourly (nonexempt) employees, or it could raise concerns if the programs shift toward favoring the highly compensated. Milliman’s latest Client Action Bulletin offers more perspective.
By year-end 2012, sponsors for calendar-year single-employer retirement plans must act on necessary and discretionary amendments and perform a range of administrative procedures to ensure compliance with statutory and regulatory requirements. There also are year-end issues that employers sponsoring nonqualified deferred compensation plans (NDCPs) should consider. This Client Action Bulletin looks at key areas that such employers and sponsors of defined benefit (DB) or defined contribution (DC) plans should address by December 31, 2012.
The Department of Labor (DOL) published its final rule on how certain retirement plan providers such as bundled service providers may furnish investment advice to participants in employer-sponsored 401(k) and similar defined contribution plans without running afoul of ERISA’s prohibited transactions rule. Read more in the latest Client Action Bulletin.
By year-end 2011, sponsors of calendar-year single-employer retirement plans must act on necessary and discretionary amendments and perform a range of administrative procedures to ensure compliance with statutory and regulatory requirements. In addition, there are year-end issues that employers sponsoring nonqualified deferred compensation plans (NDCPs) should consider. This Client Action Bulletin looks at key areas such employers and sponsors of defined benefit (DB) or defined contribution (DC) plans should address by December 31, 2011.
The Department of Labor (DOL) has issued a proposed rule implementing a statutory requirement that defined benefit (DB) plan administrators furnish an annual funding notice. The proposed rule incorporates current DOL guidance that remains in effect until the agency adopts a final rule, specifying the plan administrator’s notification obligations and the required content of the notice. The proposed rule includes an appendix containing two model notices that plan administrators may use until the DOL issues a final rule. One notice is for single-employer plans, one is for multi-employer plans.
Plan administrators of pension plans with more than 100 participants and that are subject to ERISA Title IV generally must furnish the notices no later than 120 days after the close of each plan year. For example, calendar-year plans must distribute the 2010 plan year notice by April 30, 2011. Notices must be provided to each plan participant and beneficiary, alternate payees under qualified domestic relations orders (QDROs), the Pension Benefit Guaranty Corporation (PBGC), each labor organization representing plan participants, and each employer that has an obligation to contribute to the plan.
For more, read the Client Action Bulletin.