Kentucky storm victims may qualify for relief

Victims of severe storms, tornadoes, straight-line wind and flooding beginning April 22, 2011, in parts of Kentucky may qualify for tax relief from the IRS. The President has declared the counties of Boyd, Crittenden, Graves, Hardin, Hickman, Jefferson, Livingston, McCracken, Marshall, Union and Webster to be federal disaster areas. The IRS has postponed certain deadlines […]

Participants may consider surrender charges when determining taxable value of life insurance policies distributed from nonqualified plan

Participants in a terminated nonqualified plan were required under Code Sec. 402(b) to pay tax on the fair market value of the life insurance policies distributed to them, but the surrender charges of the policies, as well as other factors, could be considered in determining FMV, the U.S. Tax Court has ruled in Schwab v. […]

AON research finds employers stress healthier habits and behavior change in an effort to lower health care costs, with some imposing a penalty for lack of effort, results

Employers are beginning to rely more on employees to stem the tide of rising health care costs, but the inability to motivate and change habits has prompted concern, according to Aon Hewitt. More than 1,000 employers nationwide were surveyed in the 2011 Health Care Survey, which revealed that the top health care outcomes organizations would […]

Mercer provides checklist for sponsors of defined benefit plans

Mercer has developed a “checklist” to help defined benefit (DB) plan sponsors address challenges they are facing in today’s environment. The checklist is also beneficial for plan sponsors who are looking to improve their administrative processes and/or are contemplating moving their DB plan to a new co-sourced or outsourced relationship, according to Mercer. Administering DB […]

SSA seeks comments on proposed information gathering activities

The Social Security Administration is soliciting comments from the public regarding a number of revised and renewed forms and other information gathering activities prior to submission for clearance by the Office of Management and Budget (OMB) as well as for some activities for which clearance has already been sought. Specifically, the SSA wants feedback on […]

Plan was not an accountable plan due to unspent expenses

A reimbursement or other expense allowance arrangement where the employer paid an amount to its employee regardless of whether an expense was paid or incurred or reasonably expected to be paid or incurred by the employee was considered a nonaccountable plan. The plan violated the business connection’s reimbursement requirement under Reg. §1.62-2(d)(3)(i). Amounts paid under […]

EEOC wants to extend Title VII and ADA recordkeeping requirements to include entities covered by GINA

The U.S. Equal Employment Opportunity Commission (EEOC) intends to extend its existing recordkeeping requirements under Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act to entities that are covered by Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA), according to a notice of proposed rulemaking scheduled […]

Study shows US organizations reinvesting in human resources spending, staffing

Bersin & Associates announced on June 1, that US organizations are starting to reinvest in human resources services and staffing following the economic downturn of the past three years, according to findings included in Bersin & Associates’ The HR Factbook 2011: Executive Summary. Organizations on average spent 1.4 percent more on HR programs, services and systems […]

No change in third quarter 2011 interest rates

The Internal Revenue Service has announced that interest rates will remain the same for the calendar quarter beginning July 1, 2011. The interest rates are as follows: four percent for overpayments (three percent in the case of a corporation); four percent for underpayments; six percent for large corporate underpayments; and one and one-half percent for […]

Funding Status Of Multiemployer Plans Slowly Improving

from Spencer’s Benefits Reports: The average funded percentage of multiemployer plans increased slightly to 89% for plan years ending Dec. 31, 2010, compared with 86% for plan years ending Dec. 31, 2009, according to the Segal Company. However, the percentage is much lower than the 97% funded percentage for plan years ending Dec. 31, 2007. […]