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.

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