Legislative & Regulatory Updates

Leap Day Deadline Looms – Creditable Coverage Disclosures to CMS

If you sponsor a calendar year group health plan that provides prescription drug coverage to Medicare Part D-eligible individuals, then you have a Leap Day deadline.

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You're Safe! IRS Provides Guidance on Mid-year Changes to Safe Harbor 401(k) Plans

While plan sponsors of safe harbor 401(k) plans have enjoyed the benefits of not having to worry about passing nondiscrimination and top-heavy testing, some have struggled with the limitations on making mid-year amendments to such plans. In Notice 2016-16, the IRS provides additional guidance allowing such mid-year amendments.

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Legislation Signed by the President on November 2nd Impacts Pensions

Most notable among the pension changes is an increase in premiums payable by single-employer defined benefit plans to the Pension Benefit Guaranty Corporation (PBGC). 

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Handy Reference - 2016 Employee Benefit Plan Limits

This handy reference includes 2016 limits for employee benefit plans, Social Security benefits, Medicare prescription drug benefits, and Health Savings Accounts (HSAs). As a point of comparison, 2015 plan limits are also included.

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Seven Questions to Pose for FLSA Overtime Regulations

The changes outlined in the proposed overtime regulations will likely impact financial results, human resources and information systems.

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Dodd-Frank Pay Ratio Final Regulations

The SEC issued a final rule to establish the standards for compliance with the executive pay ratio requirements. Issuers have several actions as they prepare for the disclosure.

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One More Year Until New Mortality Tables Are in Place for Lump Sums

Plan sponsors have one more year before the new mortality tables are in place and lump sum values increase. Consult with your actuary for details on the implications and strategies of de-risking before the RP-2014 mortality tables are implemented.

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IRS Eliminates 5-Year Determination Letter Remedial Amendment Cycles for Individually Designed Plans

Written By Jason Rothman

On July 21, 2015, the IRS issued Announcement 2015-19, which eliminates the 5-year remedial amendment cycles for individually designed plans, effective January 1, 2017. As of that effective date, the IRS will no longer accept determination letter submissions for plans based on the 5-year remedial amendment cycles (with the exception of Cycle A plans which have a determination letter submission period of February 1, 2016 through January 31, 2017).

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IRS Revises Use of Lump Sum Payments to Retirees

Written By David Davala

On July 9, 2015, the IRS released Notice 2015-49, Use of Lump Sum Payments to Replace Lifetime Income Being Received By Retirees Under Defined Benefit Pension Plans. The Notice states that the IRS and Treasury Department intend to amend the regulations to address the use of lump sum payments to replace annuity payments.

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Dodd-Frank Clawback Proposal

Written By Brad Smith

The Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted in 2010 and was intended to address shareholder rights and executive compensation practices. The Securities and Exchange Commission was directed, as part of the Dodd-Frank Act, to put in place a requirement that public companies include a clawback provision in their executive compensation contracts that is triggered by any accounting restatement. A clawback provision generally allows companies to recoup erroneously awarded incentive compensation, where an error was detected after issuance of the incentives.

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Proposed Dodd-Frank Pay Versus Performance Rules

Written By Brad Smith

The Dodd-Frank Act was enacted in 2010 with intent to address shareholder rights and executive compensation practices. The Securities and Exchange Commission was directed as part of the Dodd-Frank Act to put in place a requirement that public companies disclose in their proxies information that shows the relationship between executive compensation actually paid, and the financial performance of the company. This portion of the Dodd-Frank Act has come to be known as the Pay Versus Performance disclosure requirements.

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