Pension & Benefits NetNews – April 17, 2018

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Featured This Week

Employee Benefits Management News

  • IRS’s compliance with employer shared responsibility provision needs improvement, TIGTA says
  • Iowa enacts law allowing association health plans that evade some ACA rules
  • Managing health care benefits costs remains top priority for companies
  • IRS FAQs address new employer credit for paid family and medical leave

Pension Plan Guide News

  • IRS modifies procedures for issuing opinion/advisory letters for pre-approved DB plans with cash balance formula
  • IRS postpones filing deadline until June 29 for victims of Hurricane Maria
  • Manager must pay $87K in restitution for stealing 401(k) contributions and payroll taxes

Employee Benefits Management News

IRS’s compliance with employer shared responsibility provision needs improvement, TIGTA says

The IRS failed to identify a substantial number of employers that were potentially liable for the Employer Shared Responsibility Payments, according to a report by the Treasury Inspector General for Tax Administration (TIGTA). For more information, see ¶2114P.

        (Read Intelliconnect) »

Iowa enacts law allowing association health plans that evade some ACA rules

Iowa Governor Kim Reynolds has signed a bill that allows associations of employers or certain agricultural organizations to offer health plans that do not comply with some of the Patient Protection and Affordable Care Act’s provisions. For more information, see ¶2114R.

        (Read Intelliconnect) »

Managing health care benefits costs remains top priority for companies

Managing health care benefits costs remains employers’ top benefit priority, with 66 percent of companies with 50 to 1,000 workers ranking it as a key 2018 concern, according to recent research from Hub International. For more information, see ¶2114T.

        (Read Intelliconnect) »

IRS FAQs address new employer credit for paid family and medical leave

The IRS has issued a set of frequently asked questions (FAQs) that address the new employer credit under Code Sec. 45S for paid family and medical leave. The Tax Cuts and Jobs Act (P.L. 115-97) created the credit, which is generally effective for wages paid in taxable years of the employer beginning after December 31, 2017. For more information see ¶2114V.

        (Read Intelliconnect) »

Pension Plan Guide News

IRS modifies procedures for issuing opinion/advisory letters for pre-approved DB plans with cash balance formula

The IRS has modified procedures for issuing opinion and advisory letters for pre-approved defined benefit (DB) plans containing a cash balance formula. Specifically, the IRS has modified sections 6.03(7)(c) and 16.03(7)(c) of Rev. Proc. 2015-36 to allow pre-approved DB plans containing a cash balance formula to provide for the actual rate of return on plan assets as the rate used to determine interest credits. The IRS has also modified section 6.03(7)(c) of Rev. Proc. 2017-41 relating to the rates that are permitted to be used to determine interest credits in pre-approved DB plans containing a cash balance formula. In addition, references to “hypothetical interest” and “hypothetical interest credits” in Rev. Proc. 2015-36 have been changed to “interest credits”, consistent with terminology in Rev. Proc. 2017-41. For more information, see ¶17299v74.

        (Read Intelliconnect) »

IRS postpones filing deadline until June 29 for victims of Hurricane Maria

The IRS is reminding victims of Hurricane Maria in the U.S. Virgin Islands and in the Commonwealth of Puerto Rico that filing and payment activities have been further postponed beyond Jan. 31, 2018. The IRS extended tax deadlines for affected individuals and businesses until June 29, 2018, for the following localities: (1) In the U.S. Virgin Islands (starting Sept. 16, 2017): Islands of St. Croix, St. John and St. Thomas, and (2) In Puerto Rico (starting Sept. 17, 2017): In any of the 78 municipalities. For more information, see ¶156u.

        (Read Intelliconnect) »

Manager must pay $87K in restitution for stealing 401(k) contributions and payroll taxes

After an investigation by EBSA, the U.S. District Court for the Western District of Virginia has sentenced Felix Rafael Ginorio to time served plus two years supervised release, and has ordered him to pay restitution of $87,276 for stealing from an employee benefit plan, and failing to pay federal taxes. As a result of his conviction, Ginorio is barred from serving as a fiduciary or service provider to an employee benefit plan covered by ERISA. EBSA investigators found that from April 2013 to January 2014, Ginorio failed to remit $5,317 in employee contributions to the Southside Manufacturing Corp. Retirement 401(k) Savings Plan. He served as vice president of the Loyola Fund Inc. in Palm Beach, Florida. The Loyola Fund owned Southside Manufacturing, at which Ginorio was an onsite manager. Employees of Southside Manufacturing Inc. contributed to the plan via weekly payroll deduction. For more information, see ¶156w.

        (Read Intelliconnect) »

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