IRS/Treasury Discuss Shared Responsibility Payment Guidance And Safe Harbors

  During the September 20 ALI-CLE seminar Retirement, Deferred Compensation, and Welfare Plans of Tax-Exempt and Governmental Employers, Stephen Tackney, special counsel in the IRS Office of Division Counsel/Associate Chief Counsel, Tax Exempt and Government Entities (TE/GE), and Rachel Levy, attorney-advisor in the Treasury Office of Benefits Tax Counsel, discussed the latest guidance implementing applicable […]

Return of premium refunds to plan sponsor was not employer reversion

 The return of refunds of premiums paid by a sponsor of a single-employer defined benefit plan for a group annuity contract did not constitute an employer reversion that would be subject to an excise tax under Code Sec. 4980, according to an IRS letter ruling.   Following the sale and merger of the company sponsoring […]

Spencer’s Benefits Reports NetNews – September 28, 2012

  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 […]

Benefits Were 30.7 Percent Of Total Compensation In June 2012, BLS Finds

from Spencer’s Benefits Reports: Employer-provided benefits costs for civilian workers in private industry and state and local governments in June 2012 averaged $9.39 per hour worked, accounting for 30.7 percent of total compensation costs, which averaged $30.61 per hour worked. The cost of benefits as a percentage of compensation has risen in the past three […]

PBGC technical update explains effect of MAP-21 on 4010 reporting

The PBGC has issued a technical update providing guidance on the effect of the Moving Ahead for Progress in the 21st Century Act (MAP-21; P.L. 112-141) on annual financial and actuarial reporting under ERISA §4010. The Technical Update supersedes any inconsistent guidance in the PBGC’s 4010 filing instructions. MAP-21 disregarded for determining FTAP Effective beginning […]

IRS Deputy Miller Touts ACA Implementation

IRS Deputy Commissioner for Services and Enforcement Steven T. Miller told House lawmakers on September 11 that the IRS will be ready in 2014 to implement the advance premium tax credits and health care exchanges required by the Patient Protection and Affordable Care Act (ACA). Speaking before the House Ways and Means Oversight Subcommittee, Miller […]

IRS issues guidance on MAP-21 funding rules for single-employer DB plans

The IRS has issued guidance, in a question and answer format, on the special rules related to pension funding stabilization for single-employer defined benefit pension plans that were enacted by the Moving Ahead for Progress in the 21st Century Act (MAP-21; P.L. 112-141). The guidance addresses the application of MAP-21 segment rates generally, as well […]

Major Contract Awards

Defense Logistics Agency Awards $4.7 Billion in Fuel Contracts. Equilon Enterprises dba Shell Oil Products — Deer Park, Houston, Texas; . Air BP, a Division of BP products of North America Inc., Naperville, Ill.; Valero Marketing and Supply Co., San Antonio, Texas; BP Products North America Inc., Chicago, Ill.; Phillips 66 Co., (Phillips), Bartlesville, Okla.; […]

Five Final Rules in FAC 2005-61 Amend the FAR

The Civilian Agency Acquisition and Defense Acquisition Regulations Councils have issued Federal Acquisition Circular 2005-61, which contains five final rules amending the Federal Acquisition Regulation. In order of appearance, the rules are: Item I—United States-Korea Free Trade Agreement (FAR Case 2012-004); Item II—Delete Outdated FAR Reference to the DoD Industrial Preparedness Program (FAR Case 2012-026); […]

Deletion of Contract Services Amounted to Breach

A breach claim was granted by the Armed Services Board of Contract Appeals because the partial termination of a contract breached the covenant of good faith and fair dealing and was an abuse of discretion. Within days after the start of the Section 8(a) contract for services of two physician assistants and a technician, the […]