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Posts Tagged ‘PBGC’

Regulatory roundup

October 27th, 2014 No comments

More retirement-related regulatory news for plan sponsors, including links to detailed information.

IRS announces pension plan limits for 2015
The Internal Revenue Service (IRS) has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment.

For additional information, click here.

IRS issues guidance on target date funds for qualified defined contribution plans
The IRS has issued Notice 2014-66, providing a special rule that enables qualified defined contribution plans to provide lifetime income by offering, as investment options, a series of target date funds (TDFs) that include deferred annuities among their assets, even if some of the TDFs within the series are available only to older participants.

This special rule provides that, if certain conditions are satisfied, a series of TDFs in a defined contribution plan is treated as a single right or feature for purposes of the nondiscrimination requirements of § 401(a)(4) of the Internal Revenue Code. This permits the TDFs to satisfy those nondiscrimination requirements as they apply to rights or features even if one or more of the TDFs considered on its own would not satisfy those requirements.

Notice 2014-66 will be published in Internal Revenue Bulletin 2014-46 on Nov. 10, 2014.

In an accompanying letter, the Department of Labor (DOL) has confirmed that target date funds serving as default investment alternatives may include annuities among their fixed income investments. The letter also describes how ERISA fiduciary standards can be satisfied when a plan sponsor appoints an investment manager that selects the annuity contracts and annuity provider to pay the lifetime income.

To read Notice 2014-66, click here.
To read the DOL’s letter, click here.

IRS posts summary of new single distribution rule for 401(a) qualified, 403(b) and 457(b) governmental retirement plans
Beginning January 1, 2015, when participants choose to direct their retirement plan distribution to go to multiple destinations, the amounts will be treated as a single distribution for allocating pre-tax and after-tax basis (Notice 2014-54 and proposed rules issued September 19, 2014).

For additional information, click here.

PBGC posts 2015 premium rates
The Pension Benefit Guaranty Corporation (PBGC) posted the 2015 premium rates. The per-participant flat premium rate for plan years beginning in 2015 is $57 for single-employer plans (up from a 2014 rate of $49) and $13 for multiemployer plans (up from a 2014 rate of $12).

For plan years beginning in 2015, the variable-rate premium (VRP) for single-employer plans is $24 per $1,000 of unfunded vested benefits (UVBs), up from a 2014 rate of $14. This $10 increase was provided in The Bipartisan Budget Act of 2013. The VRP rate is also subject to indexing, but due to statutory rounding rules, indexing had no effect on the 2015 VRP rate.

For 2015, the VRP is capped at $418 times the number of participants (up from a 2014 cap of $412). Plans sponsored by small employers (generally fewer than 25 employees) may be subject to an even lower cap. Multiemployer plans do not pay a VRP.

The Bipartisan Budget Act of 2013 calls for the VRP rate to increase another $5 starting with 2016 (on top of indexing).

To view the PBGC premiums rates, click here.

Categories: Benefit News Tags: , , ,

Regulatory roundup

October 20th, 2014 No comments

More retirement-related regulatory news for plan sponsors, including links to detailed information.

IRS revises Publication 4531, adds two new questions to 401k compliance checklist
The Internal Revenue Service (IRS) has updated its 401(k) compliance checklist for October 2014 and added two new questions to help employers determine if their plans meet the requirements of key IRS rules. The checklist, contained in Publication 4531, added the following two questions:

• Were top-heavy minimum contributions made?
• Was Form 5500, Annual Return/Report of Employee Benefit Plan, filed?

Each question has a yes or no answer, with a link to more information if the answer is no.

To access the updated checklist, click here.

IRS issues employee plans newsletter
The IRS has released the latest issue of Employee Plans News. The newsletter covers the following issues:

• New single distribution rule
• Canadian retirement plan participants
• Mandatory electronic filing for Form 8955-SSA and 5500-series
• Fidelity bonds and depositing plan contributions
• Form 500-EZ Pilot Penalty Relief Program
• IRS Nationwide Tax Forums online
• The Advisory Committee on Tax-Exempt & Government Entities (ACT)
• HAFTA premium guidance
• PBGC premium payments

To read the newsletter, click here.

PBGC issues technical update regarding HATFA’s impact on annual financial and actuarial information reporting
The Pension Benefit Guaranty Corporation (PBGC) has issued Technical Update 14-2 providing PBGC guidance on the effect of the Highway and Transportation Funding Act of 2014 (HATFA) on annual financial and actuarial information reporting under section 4010 of ERISA and part 4010 of PBGC’s regulations. This technical update supersedes any inconsistent guidance in PBGC’s 4010 filing instructions.

To read the entire technical update, click here.

PBGC files two notices requesting OMB approval
The PBGC has filed two notices of intention to request extension of Office of Management and Budget (OMB) approval (with modifications). PBGC is proposing to modify:

• Form 5500 Series – the 2015 Schedule MB (multiemployer defined benefit plan actuarial information) and instructions and the Schedule SB (single-employer defined benefit plan actuarial information) and instructions.
• Regulations on termination of single-employer plans and missing participants; implementing forms and instructions.

The notices inform the public of PBGC’s intent to modify these forms and solicit comments after publication in the Federal Register.

To read the entire notice regarding annual reporting via Form 5500 Series, click here.
To read the entire notice regarding termination of single-employer plans and missing participants, click here.

FASB issues proposed accounting standards update on compensation
The Financial Accounting Standards Board (FASB) has issued the exposure draft “Proposed accounting standards update: Compensation – retirement benefit (Topic 715)” covering “Practical expedient for the measurement date of an employer’s defined benefit obligation and plan assets.”

The amendments in this proposed update would provide a practical expedient for employers with fiscal year-ends that do not fall on a month-end by permitting those employers to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity’s fiscal year-end and to follow that measurement date methodology consistently from year to year.

The amendments would require that an entity disclose the accounting policy election and the alternative date used for measuring defined benefit plan assets and obligations.

The proposed amendments would reduce the costs of measuring defined benefit plan assets and obligations for entities with fiscal year-ends that do not fall on a month-end without decreasing the usefulness of the information to financial statement users.

To read the entire exposure draft, click here.

EBSA requests OMB extend approval of information collection requests
The Employee Benefits Security Administration (EBSA) has filed a notice requesting public comment on their request that the Office of Management and Budget (OMB) extend approval of information collection requests (ICRs) contained in certain rules and prohibited transactions.

The Titles of the ICR rules and prohibited transactions are:

• Prohibited transaction exemption 86-128
• Consent to receive employee benefit plan disclosures electronically
• Furnishing documents to the Secretary of Labor on request under ERISA 104(a)(6)
• Patient Protection and Affordable Care Act (ACA) Section 2715 summary disclosures
• ERISA Section 408(b)(2) regulation
• ERISA Procedure 76-1 advisory opinion procedure
• ERISA Technical Release 91-1
• Disclosures by insurers to general account policyholders
• Registration for EFAST-2 credentials
• Notice of blackout period under ERISA
• ACA internal claims and appeals and external review procedures for non-grandfathered plans

To read the entire notice, click here.

BLS issues multiemployer pension plans analysis
The Bureau of Labor Statistics (BLS) has published an analysis of multiemployer pension plans in its latest issue of Beyond the Numbers. According to the analysis, about one in four workers currently covered by a traditional pension plan is in a multiemployer plan, established by a labor union and an industry or trade group to cover workers from two or more related employers.

To read the entire analysis, click here.

Regulatory roundup

October 13th, 2014 No comments

More retirement-related regulatory news for plan sponsors, including links to detailed information.

Comments request related to collection requirements to defer net experience loss in a multiemployer plan
The Internal Revenue Service (IRS) is soliciting public comments on Notice 2005-40 concerning information collection requirements related to election to defer net experience loss in a multiemployer plan. The notice describes the election that must be filed by an eligible multiemployer plan’s enrolled actuary to the IRS in order to defer a net experience loss. The notice also describes the notification that must be given to plan participants and beneficiaries, to labor organizations, to contributing employers and to the Pension Benefit Guaranty Corporation within 30 days of making an election with the Service and the certification that must be filed if a restricted amendment is adopted.

For more information, click here.

PBGC offers tips to expedite premium payment postings to plan accounts
The Pension Benefit Guaranty Corporation has published information to “help ensure that premium payments are quickly and accurately posted to plan accounts, we have the following requests.”

For more information, click here.

GASB issues technical plan
The Governmental Accounting Standards Board (GASB) approved the technical plan for the final third of 2014 during its August 2014 meeting. The GASB added two projects to its current technical agenda – one related to asset retirement obligations and the other to blending requirements for certain business-type activities.

For more information, click here.

Categories: Benefit News Tags: , , ,

Regulatory roundup

September 29th, 2014 No comments

More retirement-related regulatory news for plan sponsors, including links to detailed information.

PBGC issues technical update on the effect of HATFA on PBGC premiums
The Pension Benefit Guaranty Corporation (PBGC) issued Technical Update 14-1 providing guidance on the effect of the Highway and Transportation Funding Act of 2014 (HATFA) on PBGC premiums.

The guidance supersedes any inconsistent guidance in PBGC’s 2014 premium instructions. It does not affect the guidance in PBGC Technical Update 12-1 (Effect of MAP-21 on PBGC Premiums), which continues to apply for plan years to which HATFA applies.

For more information, click here.

PBGC requests OMB approval of modification to its regulation on payment of premiums
The PBGC has issued a notice of intention to request approval from the Office of Management and Budget (OMB) to modify the collection of information under its regulation on payment of premiums. The notice informs the public of PBGC’s intent and solicits public comment on the collection of information.

To read the entire notice, click here.

IRS final rules on employee retirement benefit plan returns required on magnetic media
The Internal Revenue Service (IRS) released final regulations related to the requirements for filing certain employee retirement benefit plan statements, returns, and reports on magnetic media. The term magnetic media includes electronic filing, as well as other magnetic media specifically permitted under applicable regulations, revenue procedures, publications, forms, instructions, or other guidance on the IRS.gov website.

The regulations apply to employee retirement benefit plan statements and notifications required to be filed under section 6057 for plan years that begin on or after January 1, 2014, but only for filings with a filing deadline (not taking into account extensions) on or after July 31, 2015.

For more information, click here.

IRS issues new edition of Employee Plans newsletter
The IRS has issued an updated edition of its newsletter Employee Plans News. This edition contains:

• Form 5498 reporting errors: IRA trustees, issuers, and custodians should carefully complete IRA transactions.
• Updated: Finding missing plan participants: Steps plan sponsors may take to locate missing participants.
• DOL corner: Updates from the U.S. Department of Labor (DOL) on brokerage windows and missing participants.
• IRS and DOL guide for retirement plan reporting and disclosure issues: Chart summarizes plan sponsors’ responsibilities on Form 5500 annual reports, participant notices, and other items.

To read the entire newsletter, click here.

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Regulatory roundup

August 4th, 2014 No comments

More retirement-related regulatory news for plan sponsors, including links to detailed information.

IRS private letter ruling on lump sum window for those in pay status will not violate MDR
The Internal Revenue Service (IRS) recently released a private letter ruling (PLR 201431034) stating that a lump sum window for participants in pay status will not violate minimum distribution requirements (MDR).

According to the PLR:

Under the amendment, the Covered Individuals would have a specified limited window period of no more than 180 days during which they could elect to receive in lieu of their current annuity what Company A represents is the actuarial present value of their remaining benefits under the aforementioned Plans, in the form of a single lump sum payment. The window period may consist of multiple phases, such as an opt-in phase during which Covered Individuals would have the opportunity to proceed through the remainder of the window program and an election phase during which Covered Individuals could elect to receive, in lieu of their current annuity, the actuarial present value of their remaining annuity payments in the form of an immediate lump sum, and the extent the law requires, a qualified joint and survivor annuity (including a single annuity for retirees who are not married), or a qualified optional survivor annuity.

To read the entire private letter ruling, click here.

Social Security trustees retain projected year of trust fund reserve depletion
The Social Security Board of Trustees recently released its annual report on the long-term financial status of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance, and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2033, unchanged from last year, with 77% of benefits still payable at that time. The DI Trust Fund will become depleted in 2016, also unchanged from last year’s estimate, with 81% of benefits still payable.

To read the entire report, click here.

PBGC creates online resource guide on choosing between lump sum or annuity
The Pension Benefit Guaranty Corporation (PBGC) recently created an online resource that provides information to assist with “Making a choice: Lump sum or annuity?”

The new resource page allows the public to get some insight on key questions that should be answered when making this important decision and offers other hypothetical scenarios.

To read the entire guide, click here.

401(k) plans: Improvements can be made to better protect participants in managed accounts
The U.S. Government Accountability Office (GAO) has issued the report “401(k) plans: Improvements can be made to better protect participants in managed accounts.” The report reviews eight managed account providers that represented an estimated 95% of the industry involved in defined contribution plans in 2013, showing that the providers varied in how they structured managed accounts, including the services they offered and their reported fiduciary roles.

To read the entire report, click here.

IRS posts three FAQs regarding EGTRRA determination letter program for preapproved plans
The IRS has posted three new frequently asked questions (FAQs) regarding the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) determination letter program for preapproved plans.

Question #4: “If I file a determination letter application for my pre-approved defined benefit plan by April 30, 2012, and the Service determines that additional remedial amendments are needed, will I have time to adopt the amendments?”
Question #6: “I am an adopter of a volume submitter plan and I wish to make certain changes to the pre-approved document. When I file a determination letter application, must I incorporate these changes in the pre-approved plan document or may I make the changes as separate amendments to the plan?”
Question #8: “I am filing Form 5310 to terminate my EGTRRA-approved M&P or volume submitter plan. Must I include copies of interim amendments with my application?”

Regulatory roundup

July 15th, 2014 No comments

More retirement-related regulatory news for plan sponsors, including links to detailed information.

MAP-21 pension extension moves in highway trust fund bills from congressional panels
The U.S. House Ways and Means Committee has approved by voice vote a bill (H.R.5021) that would provide highway funding through May 2015 in part by using about $6.4 billion from an extension of the Moving Ahead for Progress in the 21st Century (MAP-21) Act pension funding stabilization provision. The House is expected to vote on the “Highway and Transportation Funding Act” next week.

Regarding the pension smoothing provisions, the House bill, as described by the Joint Committee on Taxation, revises the specified percentage ranges (that is, the range from the applicable minimum percentage to the applicable maximum percentage of average segment rates) for determining whether a segment rate must be adjusted upward or downward. Under the proposal, the specified percentage range for a plan year is determined by reference to the calendar year in which the plan year begins as follows:

• 90% to 110% for 2012 through 2017
• 85% to 115% for 2018
• 80% to 120% for 2019
• 75% to 125% for 2020
• 70% to 130% for 2021 or later

In addition, for purposes of the additional information that must be provided in a funding notice for an applicable plan year, an applicable plan year includes any plan year that begins after December 31, 2011, and before January 1, 2020, and that otherwise meets the definition of applicable plan year.

To read the Congressional Budget Office’s report on the bill, click here.

PBGC issues moratorium on 4062(e) enforcement
The Pension Benefit Guaranty Corporation (PBGC) has announced a moratorium, until the end of 2014, on the enforcement of 4062(e) cases. The moratorium will enable PBGC to ensure that its efforts are targeted to cases where pensions are genuinely at risk. The six-month period will also allow the PBGC to work with the business community, labor, and other stakeholders.

During the moratorium, from July 8 to December 31, 2014, PBGC will cease enforcement efforts on open and new cases. Companies should continue to report new 4062(e) events, but PBGC will take no action on those events during the moratorium.

For more information, click here.

GAO report: Private pensions: Targeted revisions could improve usefulness of Form 5500 information
In a two-phase online U.S. Government Accountability Office (GAO) survey, stakeholders identified problems with the usefulness, reliability, and comparability of data from the Form 5500 (see table in report). Despite longstanding concerns with the Form 5500—the annual report that employee benefit plans file with the federal government—agency officials have made only minimal changes over the last three years.

Key challenges identified with Form 5500:

• Weaknesses in the format
Plan asset categories break out plan assets differently from the investment industry, and provide little insight into plan investments, their structures, or the levels of associated risk. In particular, the majority of respondents indicated that the “other” plan asset category in the form is too broad because it can include many disparate types of investments. Respondents also indicated challenges in identifying the underlying holdings of plan assets invested in indirect investments.

• Challenges in finding key information
The form lacks detailed information on plan investments because there is no structured, data-searchable format for attachments to the form and the filing requirements on plan investments are limited for small plans, which have less than 100 participants.

• Inconsistent data
Naming conventions and identification numbers may be inconsistent, making it difficult to collect and accurately match records.

To read the entire GAO report, click here.

Regulatory roundup

July 7th, 2014 No comments

More retirement-related regulatory news for plan sponsors, including links to detailed information.

IRS issues final rules on the use of longevity annuity contracts
The Internal Revenue Service (IRS) issued a final rule relating to the use of longevity annuity contracts in tax-qualified defined contribution plans under section 401(a) of the Internal Revenue Code (Code), section 403(b) plans, individual retirement accounts and annuities (IRAs) under section 408, and eligible governmental plans under section 457(b).

These regulations will provide the public with guidance necessary to comply with the required minimum distribution rules under section 401(a)(9) applicable to an IRA or a plan that holds a longevity annuity contract. The regulations will affect individuals for whom a longevity annuity contract is purchased under these plans and IRAs (and their beneficiaries), sponsors and administrators of these plans, trustees and custodians of these plans and IRAs, and insurance companies that issue longevity annuity contracts under these plans and IRAs.

To read the entire final rule, click here. For the Treasury news release, click here.

PBGC report shows improvement in single-employer plans, but underscores increased risks to some multiemployer plans
Despite substantial economic and market gains, multiemployer pension plans covering about 1.5 million people are severely underfunded, threatening benefit cuts for current and future retirees, according to the FY 2013 Projections Report recently released by the Pension Benefit Guaranty Corporation (PBGC). By comparison, the financial situation for private single-employer plans, which cover about 30 million participants, is projected to improve.

To read the entire report, click here. To read the entire news release issued by the PBGC, click here.

IRS updates web page on top mistakes in VCP submissions
The IRS has updated its web page regarding the top mistakes made in voluntary correction program (VCP) submissions.

To view the updated web page, click here.

Categories: Benefit News Tags: , ,

Regulatory roundup

May 12th, 2014 No comments

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.

Categories: Benefit News Tags: , ,

Regulatory roundup

April 28th, 2014 No comments

More retirement-related regulatory news for plan sponsors, including links to detailed information.

PBGC requests OMB approval with modifications of 2014 schedule MB and SB and related instructions
The Pension Benefit Guaranty Corporation (PBGC) is requesting that the U.S. Office of Management and Budget (OMB) approve modifications to the 2014 Schedule MB (multiemployer defined benefit plan actuarial information) and the 2014 Schedule SB (single-employer defined benefit plan actuarial information) and related instructions.

The modification to the Schedule MB requires plan administrators of multiemployer defined benefit plans in critical status 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 modification to the Schedule SB requires plan administrators of single-employer defined benefit plans to report the funding target (vested and total) for each type of participant (active, retired, terminated vested).

Comments are expected 30 days after publication in the Federal Register.

PBGC posts standard and distress terminations and missing participants forms and instructions
The OMB has approved revisions to the standard termination, distress termination, and missing participants forms and instructions. The new forms and instructions can be found on the plan terminations page of PBGC’s website. The new forms must be used for terminations for which the first Notice of Intent to Terminate is issued on or after June 1, 2014. If the first Notice of Intent to Terminate is issued before June 1, 2014, either the new or old forms may be used.

Private Pensions: Pension Tax Incentives Update
The U.S. Government Accountability Office (GAO) has published its third issue of “Private Pensions: Pension Tax Incentives Update.”

For more information, click here.

Employee plans project summary reports: Nonqualified 401(k) plans
The Internal Revenue Service’s (IRS) Employee Plans Compliance Unit (EPCU) Nonqualified 401(k) Plans project began in February 2013. The IRS sent contact letters to a sample of plan sponsors whose 401(k) plans were shown as nonqualified. The intent was to learn whether they made a mistake when selecting pension feature codes 2J and 3C on their Form 5500 series returns to describe their plan’s characteristics.

Pension feature code 2J means:
“Code section 401(k) feature – A cash or deferred arrangement described in [Internal Revenue] Code section 401(k) that is part of a qualified defined contribution plan that provides for an election by employees to defer part of their compensation or receive these amounts in cash.”

Pension feature code 3C means:
“Plan not intended to be qualified – A plan not intended to be qualified under [Internal Revenue] Code sections 401, 403 or 408.”

To read the results, click here.

Categories: Benefit News Tags: , , ,

Regulatory roundup

April 21st, 2014 No comments

More retirement-related regulatory news for plan sponsors, including links to detailed information.

PBGC posts 2014 premium filing information
The U.S. Office of Management and Budget (OMB) has approved the 2014 premium filing instructions consistent with the Pension Benefit Guaranty Corporation’s (PBGC) recent final rule making its premium regulations more effective and less burdensome.

The web pages showing premium due dates and interest rates used to determine the variable-rate premium have been updated to reflect the new regulations.

For more information, click here.

PBGC announces My PAA ready for 2014 premium filings
The My Plan Administration Account (My PAA) website has been updated to reflect recent changes to the premium regulation (first effective for 2014 plan years) as described in the 2014 premium filing instructions. Comprehensive filings for plan years beginning in 2014 may now be electronically submitted via My PAA. Information about how to e-file via My PAA (e.g., demos and FAQs) is on the “Online Premium Filing With My PAA” page of the PBGC website.

A reminder that the new rules have no impact on premium filings for plan years beginning in 2013 (e.g., small calendar plans whose 2013 premium filing is due April 30, 2014).

IRS issues PLR stating that VEBA can extend benefits to domestic partners of participants
The Internal Revenue Service (IRS) has issued Private Letter Ruling (PLR) 201415011 stating that a voluntary employees’ beneficiary association (VEBA) can extend benefits to domestic partners of participants.

To read the entire letter, click here.

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