Category Archives: Benefit News

COLAs for retirement, Social Security, and health benefits for 2020

The Internal Revenue Service (IRS) has announced the cost-of-living adjustment (COLA) figures for retirement plan benefits for 2020. The Social Security Administration announced its 2020 changes in October based on the Consumer Price Index for the quarter ended September 2019 from the U.S. Bureau of Labor Statistics. The 2020 adjusted figures for high-deductible health plans (HDHPs) and health savings accounts (HSAs) included in this Client Action Bulletin were released by the IRS earlier this year and are provided here for convenience.

2020 key administrative dates and deadlines for calendar-year multiemployer defined benefit plans

Milliman’s 2020 multiemployer defined benefit calendar with key administrative dates and deadlines is now available on our website. The calendar lists relevant 2020 administrative dates encountered by most multiemployer defined benefit plans, including deadlines for governmental filings and participant disclosures. The calendar also provides short descriptions of the actions required to meet each deadline.

To download the calendar, click here.

Year-end compliance issues for single-employer retirement plans

By year-end 2019, sponsors of calendar-year single-employer retirement plans must adopt necessary and discretionary plan amendments to ensure compliance with the statutory and regulatory requirements of ERISA and the tax code. This Client Action Bulletin looks at key areas—including administrative compliance issues—that defined benefit (DB) and/or defined contribution (DC) plan sponsors should address by December 31, 2019.

Regulatory roundup

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

PBGC requests modified collection of information on payment of premiums regulation
The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) approve a modified collection of information under its regulation on payment of premiums. This notice informs the public of PBGC’s request and solicits public comment on the collection.

To learn more, click here.

2020 Draft W-2 Form issued
The Internal Revenue Service (IRS) has released a draft copy of the 2020 W-2 Form. The 2020 Form W-2 is due by February 1, 2021. Copy A of Form W-2 must be mailed or electronically filed with the Social Security Administration by February 1, 2021.

To download the draft copy, clock here.

Regulatory roundup

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

Maximum monthly guarantee tables revised
The Pension Benefit Guaranty Corporation (PBGC) has updated the maximum guarantee tables. The PBGC maximum guarantee for participants in single-employer plans is determined using a formula prescribed by federal law that calls for periodic increases tied to a Social Security index. The formula provides lower amounts for younger ages, reflecting the fact that younger people will receive more monthly pension checks over their expected lifetimes. Conversely, amounts are higher for older ages. The formula also calls for reducing the amount for retirees who choose a payment form that continues benefits to a beneficiary after the retiree’s death.

To learn more, click here.

Regulatory roundup

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

PBGC issues technical update related to financial information reporting waiver

The Pension Benefit Guaranty Corporation (PBGC) issued Technical Update 19-1 (4010 Financial Information Reporting Waiver) providing guidance on compliance with the annual financial and actuarial information reporting requirements under Section 4010 of ERISA and part 4010 of PBGC’s regulations. The update waives the requirement (subject to certain conditions) to report member-specific financial information under 29 CFR 4010.9(b)(2).

For more information, click here.

ERISA Advisory Council to hold meeting in November

The Employee Benefits Security Administration of the U.S. Department of Labor (DOL) will hold the 199th meeting of the ERISA Advisory Council November 4-5, 2019. The Council recommendations will focus on the following issues:

  • Beyond Plan Audit Compliance: Improving the Financial Statement Audit Process
  • Permissive Transfers of Uncashed Checks From ERISA Plans to State Unclaimed Property Funds

For more information, click here.