San Francisco issues 2018 employer health care spending rates

The City of San Francisco has announced the 2018 rates for its employer health care spending law, whereby employers must either contribute a specified amount toward their employees’ health care costs on a regular basis or pay into a city health care fund for San Francisco residents. Beginning January 1, 2018, the health care expenditure […]

Plan administrator’s interpretation of ambiguous plan terms in calculating pension benefit of disabled participant upheld as reasonable

A plan administrator’s interpretation of ambiguous plan terms in calculating the final average compensation of a disabled employee, resulting in a reduced pension benefit, was not arbitrary and capricious according to the U.S. Court of Appeals in Philadelphia (CA-3). The fact that the plan sponsor funded and administered the plan suggested a conflict of interest, […]

DOL issues 2017 annual UC certifications of states under FUTA

The Secretary of Labor has signed the annual 12-month certifications under the Federal Unemployment Tax Act that enable employers that make contributions to state unemployment funds to obtain certain credits against their liability for federal unemployment tax. All 50 states, as well as the District of Columbia, Puerto Rico, and the Virgin Islands, have received […]

House tax bill would eliminate favorable tax treatment for several fringe benefits

House Republicans on November 2 unveiled their much-anticipated tax reform legislation, the Tax Cuts and Jobs Act (HR 1). The 429-page bill represents the House Ways and Means Committee’s first legislative offer to significantly overhaul the U.S. Tax Code. The measure contains several benefits-related items highlighted below. Dependent care assistance. The value of employer-provided dependent […]

PBGC seeks comments on termination of single-employer plans and missing participants

The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) extend approval, with modifications, of the collection of information in its regulations on the termination of single-employer plans, missing participants, and implementing forms and instructions. The PBGC is proposing to provide that the plan administrator of a plan terminating […]

IRS updates FAQs on employer shared responsibility

The IRS has released FAQs about the Affordable Care Act’s Employer Shared Responsibility Payment (ESRP) and Letter 226J. The FAQs answer queries such as: When an employer might owe an ESRP; How an employer receiving a Letter 226J should respond to the IRS; How to request a pre-assessment conference with the IRS Office of Appeals; […]

IRS provides extensive new guidance on Qualified Small Employer Health Reimbursement Arrangements

The IRS has issued guidance on the requirements for providing a qualified small employer health reimbursement arrangement (QSEHRA), the tax consequences of the arrangement, and the requirements for providing written notice of the arrangement to eligible employees. The guidance covers eligible employers and employees, the “same terms” requirement, the statutory dollar limits, written notice requirement, […]

PBGC increases maximum monthly benefit guarantee for 2018.

The Pension Benefit Guaranty Corporation (PBGC) has announced that the maximum monthly insurance benefit for participants in underfunded pension plans terminating in 2018 is $5,420.45 per month or $65,045 per year for those who retire at age 65. On its website, the PBGC has provided a chart that shows the 2018 monthly maximum benefit guarantees […]

House passes roll back of revised joint-employer standard

The House has passed the Save Local Business Act, H.R. 3441, that would roll back the revised joint-employer standard on November 7, 2017. The bill would provide a common sense standard under the National Labor Relations Act (NLRA) and Fair Labor Standards Act (FLSA) for determining whether a joint-employment relationship exists. The bill would restore […]

Spencer’s Benefits NetNews – November 10, 2017

  About this Newsletter The Spencer’s Benefits Reports is a summary of the week’s news items posted in the WHAT’S NEW pages of Spencer’s Benefits Reports Online. For questions regarding this email service, contact Customer Service at (800)449-9525. NetNews Subscription Want to receive these Newsletters via E-mail? Sign Up / Unsubscribe Resources Online Store […]