More retirement-related regulatory news for plan sponsors, including links to detailed information.
New GAO report focuses on lump-sum information for plan participants
The Government Accountability Office (GAO) has released “Private pensions: Participants need better information when offered lump-sums that replace their lifetime benefits” (GAO-15-74). The report reviews the critical issues associated with lump-sum window offerings by large pension plan sponsors. The GAO’s review focused on the prevalence of lump-sum offers and sponsors’ incentives to use them, the implications for participants, and the extent to which selected lump-sum materials provided to participants include key information.
To read the entire report, click here.
SEC no-action letter extending Rule 482 relief
The Securities and Exchange Commission (SEC) has released a letter sent to the American Retirement Association in which it extends its position concerning Rule 482 to certain information furnished to participants and beneficiaries in certain retirement savings plans under Section 403(b) of the Internal Revenue Code of 1986 (Code) that are not subject to ERISA, i.e., non-ERISA 403(b) plans.
According to the letter, the SEC agrees to treat investment information required by the U.S. Department of Labor (DOL) furnished, in the manner described, to non-ERISA 403(b) plans, and participants and beneficiaries in such plans, as if it were a communication that satisfies the requirements of Rule 482 under the Securities Act.
The views expressed in the letter also extend to retirement savings plans that similarly are not subject to ERISA, including governmental 457(b) and 401(a) plans, 415(m) plans, church 401(a) plans, non-governmental 457(b) plans, and 409A plans or 457(f) plans of governmental or tax-exempt entities, i.e., other non-ERISA plans.
To read the entire letter, click here.
IRS changes address for 403(b) pre-approved plan determination letters submissions
The Internal Revenue Service (IRS) has issued Revenue Procedure 2015-22 containing a modification to Revenue Procedure 2013-22, 2013-18 I.R.B. 985, as modified by Revenue Procedure 2014-28, 2014-16 I.R.B. 944, and modifications to Revenue Procedure 2015-8, 2015-1 I.R.B. 235.
In particular, this revenue procedure changes the addresses to which applications for opinion and advisory letters for § 403(b) preapproved plans should be submitted and inserts a user fee that was omitted from Rev. Proc. 2015-8. This revenue procedure will be in Internal Revenue Bulletin 2015-11 dated March 16, 2015.
For more information, click here.
IRS issues employee plans newsletter
The IRS has issued the February 27, 2015, edition of Employee Plans News. To download the newsletter, click here.