More retirement-related regulatory news for plan sponsors, including links to detailed information.
PBGC issues notice for OMB review of information collection with modifications of Form 5500 schedule MB and SB
The Pension Benefit Guaranty Corporation (PBGC) issued a notice of intention to request extension of Office of Management and Budget (OMB) approval, with modifications, to the schedule MB (multiemployer defined benefit (DB) plan actuarial information) and the schedule SB (single-employer DB plan actuarial information) and related instructions.
The proposed modifications to the schedule MB would require plan administrators of multiemployer DB plans to specify the documentation required regarding progress under the applicable funding improvement or rehabilitation plan. Plan administrators of multiemployer plans in critical status would be required to provide information about the plan year in which the plan is projected to emerge from critical status and, if the rehabilitation plan is based on forestalling possible insolvency, the plan year in which insolvency is expected. The proposed modifications to the schedule SB would require plan administrators of single-employer DB plans to report the funding target (vested and total) for each type of participant (active, retired, terminated vested).
To read the entire PBGC notice, click here.
IRS’ employee plans updates publication on DB plans section 436 limitations
The Internal Revenue Service’s (IRS) Employee Plans Division has updated examination worksheet number 14 to identify major problems with respect to the limitations under Section 436. The worksheet applies to single-employer defined benefit plans (including multiple employer plans) that are subject to the minimum funding requirements of section 412. The worksheet does not apply to governmental plans and non-electing church plans.
To read the entire examination worksheet, click here.
IRS updates instruction manual on 401k (ADP/ACP) correction methods
The IRS has updated under the Employee Plans Continuing Professional Education (CPE) Technical Instruction Program its chapter on section 401(k) and (m), ADP/ACP test correction methods.
The chapter covers 401(k) and (m) correction methods under the Employee Plans Compliance Resolution System (EPCRS). It also covers correction methods for average deferral percentage (ADP)/average contribution percentage (ACP) failures, section 402(g) failures, improperly excluding employees, improperly excluding employees’ catch-up and matching contributions, failure to implement employees’ elections, and coordination with correction of other failures.
To view the updated chapter, click here.
IRS continuing education – post PPA legislation, plan terminations, DB plan schedule B and related schedules
The IRS has posted three chapters of Continuing Education Material for Employee Plans Personnel: post PPA pension legislation, plan terminations, defined benefit plans schedule SB (Form 5500) and related schedules.