More retirement-related regulatory news for plan sponsors, including links to detailed information.
IRS updates posting: Updating frozen DB plans for current law and other compliance issues
The Internal Revenue Service (IRS) has updated its web page titled “Updating frozen DB plans for current law and other compliance issues.” During the frozen plan amendments project, the Employee Plans Compliance Unit looked at whether sponsors of frozen defined benefit plans had amended their plans for the Economic Growth and Tax Relief Reconciliation Act of 2001.
Employee Plans designed the frozen plan amendments project to learn:
1. If plan sponsors amended their frozen plans for current law by the required deadlines.
2. Whether the sampled plans were actually frozen defined benefit plans.
3. Reasons the plans were frozen.
4. The effective date of the freeze.
5. What sponsors intended to do with their frozen plans in the short term.
Overall, the project showed that sponsors of the sampled frozen defined benefit plans amended their plans for current law by the required deadlines, but other issues were found.
To access the updated web page, click here.
PBGC issues final rule on phase-in of unpredictable contingent event benefit guarantees
The Pension Benefit Guaranty Corporation (PBGC) released a final rule on the phase-in of guaranteed benefits in the event of an “unpredictable contingent event” (such as a plant shutdown) in a single-employer plan, as provided under the 2006 Pension Protection Act (PPA).
In general, the PPA phases in the period for the guarantee of such benefits, starting no earlier than the date of the shutdown or other unpredictable contingent event. The final rule incorporates the definition of an unpredictable contingent event benefit; provides that the guarantee of such a benefit is phased in from the latest of the date the benefit provision is adopted, the date the benefit is effective, or the date on which the event that makes the benefit payable occurs; and includes eight examples that show how the phase-in rules apply in various situations.
To read the entire final rule, click here.
IRS issues two pieces of guidance on Form 5500 and Form 5500 EZ
The Internal Revenue Service (IRS) has issued Revenue Ruling 2014-32, which establishes a one-year pilot program to provide relief to plan administrators who fail to file Form 5500 EZ in time. Revenue Procedure 2014-32 will be published in Internal Revenue Bulletin 2014-23 on June 2, 2014.
The IRS also issued Notice 2014-25 applying administrative relief to late filers of Form 5500 who satisfy the requirements of this notice and the Delinquent Filer Voluntary Compliance (DFVC) Program administered by the U.S. Department of Labor (DOL) Employee Benefits Security Administration. Notice 2014-35 will be published in Internal Revenue Bulletin 2014-23 on June 2, 2014.
To read a temporary copy of Revenue Ruling 2014-32, click here.
To read a temporary copy of Notice 2014-25, click here.
IRS updates FAQs for 403(b) preapproved plan program: Duties of plan sponsors and application procedures
The IRS has updated its frequently asked questions (FAQs) for 403(b) preapproved plan program, duties of plan sponsors.
To access the updated FAQ page, click here.
IRS posts article on retirement plans internal controls
The IRS has published an article entitled “Internal controls are essential in retirement plans.” In the article Monika Templeman, director of Employee Plans Examinations, responds to questions and offers insights on retirement plan topics uncovered during audits.
To read the article, click here.