More retirement-related regulatory news for plan sponsors, including links to detailed information.
CBO’s releases new long-term projections for Social Security
The Congressional Budget Office (CBO) has published a new report entitled “CBO’s 2014 long-term projections for Social Security – additional information.” The CBO projects that under current law, the DI trust fund will be exhausted in fiscal year 2017, and the OASI trust fund will be exhausted in 2032. If a trust fund’s balance fell to zero and current revenues were insufficient to cover the benefits specified in law, the Social Security Administration would no longer have legal authority to pay full benefits when they were due.
To read the entire report, click here.
IRS releases changes to employee plans determination letter processing
The IRS released Announcement 2015-01, describing changes to the processing of employee plans determination letters that will take effect in 2015. These changes are being adopted as a result of a process improvement strategy designed to promote case processing efficiency.
The changes to the determination letter procedures described in this announcement will be reflected in Rev. Proc. 2015-6, which will be published in IRB 2015-1 and be effective on February 1, 2015. Rev. Proc. 2015-6 will set forth the Service’s procedures for issuing determination letters on the qualified status of employee plans.
To read the entire announcement, click here.
DOL issues information letter on MyRAs facilitated by employers
The Department of Labor (DOL) has released an information letter stating that employers facilitating retirement savings accounts known as “MyRAs” will not be establishing an ERISA-covered “employee pension benefit plan.” The DOL’s letter responds to a Treasury Department inquiry that asked whether the accounts would be covered by ERISA Title I.
The Treasury recently released a final rule on the savings bonds that are only available through the program announced by the President in January. Until the program is expanded, in order for an employee to make contributions to a myRA account, the employer must agree to forward the employee’s payroll deduction contributions. Employers would not make contributions to the myRAs and they would have no investment or other funding obligations, or have any custody or control over account assets.
To read the entire information letter, click here.
DOL releases advance copies of 2014 Form 5500 and 5500-SF
The DOL’s Employee Benefits Security Administration has updated its website with advance informational copies of the 2014 Form 5500 and 5500-SF and final copy of the 2014 Form M-1 of Form 5500.
For more information, click here.