More retirement-related regulatory news for plan sponsors, including links to detailed information.
PBGC issues Hurricane Maria disaster relief
In Disaster Relief Announcements 17-14 and 17-15, the Pension Benefit Guaranty Corporation (PBGC) is waiving certain penalties and extending certain deadlines in response to Hurricane Maria in the U.S. Virgin Islands and Puerto Rico.
Congress approves bill with hurricane tax relief for retirement plan withdrawals
The U.S. House of Representatives approved the “Disaster Tax Relief and Airport and Airway Extension Act” as amended and approved by the Senate, sending H.R.3823 to the president. The temporary tax relief provisions cover Hurricanes Harvey, Irma, and Maria. The provisions allow hurricane victims to withdraw funds from retirement accounts without penalties and provide for employer tax credits of up to $6,000 for wages paid to an employee from the central disaster area.
PBGC publishes new insurance coverage webpage
The PBGC posted a new web page for employers and practitioners summarizing which pension plans are covered by the PBGC insurance program and which are not. For the vast majority of plans, it’s fairly obvious whether PBGC coverage applies, but because of complicated rules in the law that is not always the case. This is especially true for small plans that cover only professional individuals (e.g., attorneys, architects), plans based in Puerto Rico, and plans affiliated with churches. The web page provides an overview of the rules and highlights the types of plans that should consider requesting a coverage determination.
To visit the web page, click here.
PBGC seeks approval of modified information collection in single-employer plan termination regulations
The PBGC intends to request that the Office of Management and Budget (OMB) extend approval with modifications of its regulations on termination of single-employer plans and missing participants, and implementing forms and instructions.
To learn more, click here.