Regulatory roundup

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

Private letter ruling on unsubsidized single lump-sum benefits
The Internal Revenue Service (IRS) has released a private letter ruling (PLR), Number 201605006, on unsubsidized single lump-sum benefits provided by a company’s defined benefit and defined contribution plans.

To read the entire letter, click here.

Report on benefit reductions in the Central States Multiemployer DB Pension Plan
The Congressional Research Service (CRS) has issued a report entitled “Benefit reductions in the Central States Multiemployer Defined Benefit Plan: Frequently asked questions.” The report answers the following questions:

• What is the Central States Pension Fund?
• Why is the plan proposing to reduce benefits?
• Is the Pension Benefit Guaranty Corporation (PBGC) supposed to pay benefits when a plan cannot?
• How does the Multiemployer Pension Reform Act (MPRA) dictate which benefits to cut and by how much?
• What is the process for approving benefit reductions?
• Is a vote of participants required to approve benefit reductions?
• Has any legislation been introduced that could prevent implementation of the benefit reductions?

To read the entire report, click here.

Guidance on 2016 inflation-adjusted figure for qualified transportation fringe benefit
The IRS has released Revenue Procedure 2016-14 containing additional inflation-adjusted items resulting from the enactment of the Protecting Americans from Tax Hikes Act of 2015.

The Revenue Procedure contains figures for the qualified transportation fringe benefit 132(f). For taxable years beginning in 2016, the monthly limitation under § 132(f)(2)(A) regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $255. This section modifies section 3.17 of Revenue Procedure 2015-53.

Revenue Procedure 2016-14 will be published in IRB 2016-09, dated February 29, 2016.

For more information, click here.

DOL issues 2015 Form M-1
The U.S. Department of Labor (DOL) has released the 2015 Form M-1, an annual report that must be filed by multiple employer welfare arrangements (MEWAs). The Form M-1 must be filed no later than March 1 following any calendar year for which a filing is required. A one-time extension of time to file will automatically be granted if the administrator of the MEWA or entity claiming exemption (ECE) requests an extension.

For more information, click here.

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