Legislative & Regulatory Updates

Reminder to Pay Transitional Reinsurance Program Fees

If you paid the 2015 Transitional Reinsurance Fee of $44 per member (applies to both employee and covered dependents) in installments, the 2nd installment of $11 per member is due November 15, 2016.

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Hurricane Matthew Victims Get a Helping Hand from the IRS

The Internal Revenue Service (IRS) announced on October 21, 2016 that participants in 401(k) plans, 403(b) tax-sheltered annuities and 457(b) deferred compensation plans may be able to use newly announced streamlined rules to alleviate the financial hardships caused by Hurricane Matthew with loans and hardship distributions.

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Correction Program No Longer A Puzzle in Pieces for Retirement Plan Sponsors

The new procedure for the Employee Plans Compliance Resolution System (EPCRS) will make it easier and clearer for retirement plan sponsors to correct plan failures so that the plans can continue on a tax-favored basis.  Parts of EPCRS had been in three separate revenue procedures, and the new Determination Letter program had confused other portions of EPCRS.  Now, there is more clarity, and it's in one place.

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PBGC Issues Final Regulations on Section 4010 Filings for Unfunded Plans

The PBGC has issued an updated set of rules regarding ERISA 4010 reporting.

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October 14 Deadline - Medicare Part D Notice

It's that time of year again when employers must comply with notifying Medicare-eligible members covered under employer-sponsored health plans whether their prescription drug (Rx) benefits qualify as "creditable coverage" under Medicare Part D. The Medicare Part D Notice is due by October 14, 2016.

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A Taxpayer Win - Self-Certification for Waiver of the 60-day Rollover Limit
On August 24, 2016, the IRS issued Revenue Procedure 2016-47, which provides that an individual taxpayer can self-certify that they are eligible for a waiver of the 60-day rollover requirement by using the model letter provided in the Revenue Procedure.

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Considerations in Complying with ACA Section 1557 Non-discrimination Rules

On May 18, 2016, the Department of Health and Human Services (HHS) released its final rules for Section 1557 of the Affordable Care Act (ACA). Under ACA Section 1557, an individual may not be excluded from participation in, denied benefits of, or be subjected to discrimination under a health plan which is receiving Federal financial assistance if such discrimination is prohibited under Title VI of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, the Age Discrimination Act of 1975, or Section 504 of the Rehabilitation Act of 1973. 

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Findley Davies Review of Proposed Regulations Under Section 409A

The IRS issued proposed regulations which clarify and modify Section 409A which governs deferred compensation arrangements. Plan sponsors will want to decide if they will continue to rely on the current regulations or comply with the proposed regulations going forward.

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Section 457 Taxation of Deferred Compensation Action Items

This summer the IRS issued proposed regulations covering the taxation of compensation deferred under Section 457. Plan sponsors will want to act now to determine if their provisions present any compliance issues keeping in mind some areas of greater flexibility in plan design.

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IRS Puts Brakes on Cyclical Determination Letter Program

On June 29, 2016, the IRS issued Revenue Procedure 2016-37, effective date of January 1, 2017, which is consistent with the prior Announcement and Notice, and which eliminates the staggered five-year remedial amendment cycle and the requirement for individually designed plans to adopt interim amendments.

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Two Joint Resolutions Would Invalidate Recently Finalized EEOC Wellness Rules

Lawmakers have introduced two joint resolutions that, if passed, would invalidate the recently finalized EEOC wellness rules. 

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