More retirement-related regulatory news for plan sponsors, including links to detailed information.
IRS updates revenue procedures for 2019
The Internal Revenue Service (IRS) published Internal Revenue Bulletin 2019-1, which includes the various revenue procedures, revised for 2019, for issuing letters, rulings, determination letters, and technical advice on specific issues related to employee benefits.
• Rev. Proc. 2019-1: Letter rulings, information letters, and determination letters—the schedule of user fees for letter rulings is included in Appendix A and reveals certain requests for letter rulings.
• Rev. Proc. 2019-2: Explains when and how technical advice is furnished by the various associate chief counsels and the division counsel/associate chief counsel to a director or an area director, and also appeals.
• Rev. Proc. 2019-3: Provides a revised list of tax code provisions under the jurisdiction of the various associate chief counsels and the division counsel/associate chief counsel on which the IRS will not issue rulings or determination letters.
• Rev. Proc. 2019-4: Provides procedures for furnishing ruling letters, information letters, etc. on matters related to tax code sections currently under the jurisdiction of the Commissioner of the Tax Exempt and Government Entities (TE and GE) Division.
For an electronic version of Internal Revenue Bulletin 2019-1 that contains these revenue procedures and user fee schedules, click here.
PBGC annual report of the participant and plan sponsor advocate
The Pension Benefit Guaranty Corporation (PBGC) released the 2018 Annual Report of the Participant and Plan Sponsor Advocate. This statutorily required report discusses the activities of the Office of the PBGC Participant and Plan Sponsor Advocate.
Notably, the report provides the second part of its study on single employer pension plan de-risking. Unlike the quantitative approach of the first part of the de-risking study, Part II took a qualitative approach, which consisted of a focus group from a small but diverse group of plan sponsors on varying paths toward de-risking. The small group format allowed for a deeper probe into the reasoning behind de-risking decisions, which can be helpful to inform and shape retirement policy for all Americans. The report also offers numerous recommendations for multiemployer plans.
To download the entire report, click here.
GASB implementation guide exposure draft on fiduciary activities
The Governmental Accounting Standards Board (GASB) has issued a proposed Implementation Guide that contains question and answers about the GASB’s new standards on accounting and financial reporting for fiduciary activities. The exposure draft proposes answers to dozens of questions about GASB Statement No. 84, Fiduciary Activities.
For more information, click here.
Notice providing interim guidance on excess remuneration and parachute payments
The IRS released Notice 2019-09, which provides interim guidance on the provisions of the new § 4960 added by the Tax Cuts and Jobs Act, and announces the intent of Treasury and the IRS to issue proposed regulations. Section 4960 provides that excess remuneration and excess parachute payments paid by an applicable tax-exempt organization to a covered employee are subject to an excise tax (currently 21%). This notice provides interim guidance defining (1) “applicable tax-exempt organization,” (2) “excess remuneration,” (3) “covered employee,” and (4) “excess parachute payment.” In addition, the notice instructs taxpayers on how to report and pay the excise tax.
For more information, click here.