Regulatory roundup

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

Employee Plans Compliance Unit report on complete discontinuance of contributions
The Employee Plans Compliance Unit (EPCU) of the Internal Revenue Service (IRS) designed the Complete Discontinuance of Contributions Project to determine whether profit-sharing plans, including IRC Section 401(k) plans, may have experienced a complete discontinuance of contributions. If there is a complete discontinuance of contributions in a profit-sharing plan, the plan is treated as terminated for vesting purposes and affected employees must be 100% vested in their accrued benefits.

For more information, click here.

FAB issued clarifying issues regarding proxy voting, shareholder engagement, and economically targeted investments
The Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor (DOL) released a Field Assistance Bulletin (FAB) providing guidance to EBSA’s national and regional offices regarding proxy voting, shareholder engagement, and economically targeted investments by fiduciaries of private-sector employee benefit plans covered by ERISA. FAB 2018-01, clarifies earlier interpretations set forth in Interpretive Bulletins (IBs) 2015-01 and 2016-01. In IB 2015-01, the DOL held that fiduciaries may not sacrifice returns or assume greater risks to promote collateral environmental, social, or corporate governance (ESG) policy goals when making investment decisions. In IB 2016-01, the DOL addressed issues surrounding written statements of investment policy, proxy voting, and other exercises of shareholder rights by fiduciaries when managing plan assets that are corporate stock.

For more information, click here.

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