Category Archives: Benefit News

Regulatory roundup

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

PBGC changes premium payment and correspondence mailing addresses
The Pension Benefit Guaranty Corporation (PBGC) has changed its mailing addresses for paper checks and correspondence from Bank of America to U.S. Bank. If a paper check or correspondence is mailed to Bank of America, it will be forwarded to U.S. Bank until October 30, 2018. Complete premium payment instructions can be found at the PBGC website.

To learn more, click here.

IRS updates 403(b) checklist
The Internal Revenue Service has updated its 403(b) checklist for July 2018. Every year it’s important that retirement plan sponsors review the requirements for operating a 403(b) retirement plan. The updated checklist will help sponsors keep their plan in compliance with many of the important rules.

To access the 403(b) checklist, click here.

Regulatory roundup

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

PBGC issues proposed rule on terminated and insolvent multiemployer plans and duties of plan sponsors
The Pension Benefit Guaranty Corporation (PBGC) issued a proposed rule to amend its multiemployer reporting, disclosure, and valuation regulations to reduce the number of actuarial valuations required for smaller plans terminated by mass withdrawal. The proposed rule also seeks to add a valuation filing requirement and a withdrawal liability reporting requirement for certain terminated plans and insolvent plans.

To read the entire proposed rule, click here.

Milliman expands Employee Benefits practice in Asia to Malaysia

Milliman today announced that the company is further expanding its employee benefits practice with the hire of Lin Fong Chow as Practice Leader, Employee Benefits Malaysia. Lin Fong brings with her more than 17 years of benefits and rewards experience in Malaysia.

Farzana Ismail, Managing Consultant for Milliman in Malaysia, said, “When we set up the Milliman office in 2016, we were keen to quickly expand our full global service offering to the Malaysian market. I am delighted that we will now be able to offer the Malaysian market access to a locally based team of Employee Benefits consulting talent to complement our existing insurance and health expertise.”

Mark Whatley, Practice Leader, Employee Benefits South East Asia, added, “Lin brings with her a wealth of experience working on both the consulting and corporate side of Employee Benefits and is driven by a passion for putting clients first.”

Regulatory roundup

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

BLS publishes chart on lump-sum distributions related to DC plans
The U.S. Bureau of Labor Statistics (BLS) has published a new chart highlighting the most common payment option for participants in defined contribution (DC) retirement plans. According to the BLS, “As workers approach retirement, they might wonder how their retirement savings will be paid out. Among private industry workers in defined contribution plans in 2017, most participated in savings and thrift plans (73 percent). Other common plan types include deferred profit sharing (25 percent) and money purchase pensions (18 percent). A lump sum was the most common payment option available to workers in these plans. A lump sum provides retiring workers the full amount of their retirement savings and earnings with no further benefits received from the plan.”

To learn more, click here.

Final rule aimed at improving investors’ experience issued by SEC
The U.S. Securities and Exchange Commission (SEC) issued a final rule aimed at improving investors’ experience when investing in mutual funds, exchange-traded funds (ETFs), and other investment vehicles. The rule permits asset managers to deliver shareholder reports by making them publicly accessible on a free website and sending investors a paper notice of each report’s availability via mail. If an investor prefers to continue receiving shareholder reports by mail, they may do so. The new rule goes into effect January 21, 2021.

To learn more about the final rule, click here.

Regulatory roundup

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

IRS umbrella closing agreement program allows providers of preapproved plan to correct missed deadlines
The April 30, 2016, deadline for preapproved plan adopters to sign a restated plan that complies with the Pension Protection Act has passed. After the first six-year cycle for preapproved plans ended on April 30, 2010, many Voluntary Correction Program (VCP) submissions were received from plan sponsors who didn’t sign a restated plan by the deadline.

While plan sponsors may continue to make VCP submissions for correcting a failure to restate their plans by the deadline, the Internal Revenue Service (IRS) invites financial institutions or other service providers to submit proposals for umbrella closing agreements to correct the same failure on a larger scale by addressing employers affected by the failure as a group.

To learn more, click here.

PBGC issues comment request notice on locating and paying participants
The Pension Benefit Guaranty Corporation (PBGC) requests that the Office of Management and Budget (OMB) extend approval, with modifications, of a notice to enable PBGC to pay benefits to participants and beneficiaries.

This information collection is needed to pay participants and beneficiaries who may be entitled to pension benefits from plans that have terminated. It consists of information participants and beneficiaries are asked to provide in connection with an application for benefits. In addition, in some instances, PBGC requests individuals to provide identifying information so that it may determine whether the individuals may be entitled to benefits. All requested information is needed so that PBGC may determine benefit entitlements and make appropriate payments

To learn more, click here.

Regulatory roundup

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

DOL announces temporary nonenforcement policy on fiduciary conflict rules
The U.S. Department of Labor (DOL) released Field Assistance Bulletin (FAB) 2018-02, which announces a temporary enforcement policy on prohibited transaction exemption (PTE) rules applicable to investment advice fiduciaries. The FAB states that, temporarily, the DOL will not pursue prohibited transaction claims against investment advice fiduciaries (advisers and broker-dealers) who are working diligently and in good faith to comply with the 2016 fiduciary rule that became applicable June 9, 2017. The nonenforcement period will extend until after the DOL issues regulations or exemptions or other administrative guidance.

For more information, click here.