More retirement-related regulatory news for plan sponsors, including links to detailed information.
IRS updates FAQs on retirement plan terminations and plan participant rights and plan events
The Internal Revenue Service (IRS) has updated its frequently asked questions (FAQs) regarding retirement plan terminations. An employer can terminate a plan for various reasons including bankruptcy, merger, or voluntary termination. Questions and answers are provided on terminating a retirement plan and partial plan terminations.
The second updated posting provides an explanation of plan events that may trigger retirement plan participant rights, what notices retirement plan participants should receive based upon these plan events, and when these notices should be issued.
Senate HELP Committee approves bill making ERISA clarifications
Senator Tom Harkin (D-IA), chairman of the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee, issued S.2511 after the committee approved the bill on July 23.
S.2511 will bring clarity to the pension downsizing liability rules and will ensure that there is a workable mechanism to protect pension benefits when employers show symptoms of financial distress. The bill will now be considered by the full Senate.
To read the entire provision, click here.