Pension & Benefits NetNews – August 25, 2020

NetNews Subscription

Want to receive these Newsletters via E-mail?

hr.cch.com Resources

About Links in this Newsletter

To access the IntelliConnect™ full text documents you must be a subscriber to the Pension Plan Guide or Employment Benefits Management.

Links within news stories display full text documents including legislation, regulations,
court decisions, rulings and government reports.

The first time you click on a link you will be taken to the IntelliConnect login page, where you will need to enter your ID and password. Subsequent links will take you directly to the desired document.

IntelliConnect

If you aren’t a subscriber call 800-449-9525, or let us contact you about,

Email Us

Contact us by sending an e-mail to

Featured This Week

Employee Benefits Management News

  • American Benefits Council seeks clarifications to proposed regulations on direct primary care arrangements and HSA eligibility
  • Interim final rule implements federal civilian employee paid parental leave
  • Employees losing confidence in benefits packages as pandemic continues
  • Court will mull fate of ACA on November 10

Pension Plan Guide News

  • IRS updates safe harbor explanations that are provided to recipients of eligible rollover distributions
  • IRS issues guidance on funding rules of single-employer DB plans under CARES Act
  • IRS seeks comments on extension of Form 8809

Employee Benefits Management News

American Benefits Council seeks clarifications to proposed regulations on direct primary care arrangements and HSA eligibility

The American Benefits Council has provided comments to the IRS on proposed regulations that address the extent to which payments for various types of medical care arrangements constitute “medical care” under Code Sec. 213, which is relevant to whether those amounts can be reimbursed by account-based health plans, among other things. For more information, see ¶2135X.

        (Read Cheetah) »

Interim final rule implements federal civilian employee paid parental leave

The Office of Personnel Management has released an interim final rule to implement the Federal Employee Paid Leave Act (made a part of the National Defense Authorization Act for Fiscal Year 2020), which provides 12 weeks of paid parental leave to certain federal employees covered by the FMLA. For more information, see ¶2135Y.

        (Read Cheetah) »

Employees losing confidence in benefits packages as pandemic continues

The COVID-19 pandemic is changing how employees and employers feel about benefits, according to recent research from The Hartford. The Future of Benefits Study found that 73 percent of employees said in mid-June that they value the insurance benefits their company provides, down from 80 percent in March. For more information see ¶2136D.

        (Read Cheetah) »

Court will mull fate of ACA on November 10

The Supreme Court has released the argument calendar for its October 2020 opening session, which begins October 5, and the following session, which begins November 2. Of particular interest are the consolidated Patient Protection and Affordable Care Act (ACA) cases that will be heard on November 10. Depending on the outcome, the entire ACA could fall. For details, see ¶2136E.

        (Read Cheetah) »

Pension Plan Guide News

IRS updates safe harbor explanations that are provided to recipients of eligible rollover distributions

The IRS has updated its safe harbor Code Sec. 402(f) notice explanations in IRS Notice 2018-74 that may be provided to recipients of eligible rollover distributions from an employer plan. The updates reflect legislative changes, including changes related to the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), which was enacted as part of the Further Consolidated Appropriations Act, 2020 (P.L. 116-94). The administrator of a retirement plan under Code Sec. 401(a), Code Sec. 403(a), or Code Sec. 457(b) is required to give a written explanation to recipients of an eligible rollover distribution—that is, a payment that may be rolled over to an eligible retirement plan. For more information, see ¶17170h.

        (Read Cheetah) »

IRS issues guidance on funding rules of single-employer DB plans under CARES Act

The IRS has released guidance on special rules relating to the funding of single-employer defined benefit (DB) plans and related benefit limitations under Section 3608 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136). The guidance clarifies application of the extended contribution deadline, and the optional use of the prior year’s adjusted funding target attainment percentage (AFTAP), with examples. The IRS has provided guidance in the form of questions and answers (Q&As) regarding Section 3608 of the CARES Act. The IRS states that, to the extent the instructions for Schedule SB (Single-Employer Defined Benefit Plan Actuarial Information) of Form 5500 (Annual Return/Report of Employee Benefit Plan) are inconsistent with this guidance, this guidance supersedes the instructions. For more information, see ¶17170g.

        (Read Cheetah) »

IRS seeks comments on extension of Form 8809

The IRS is seeking comments on an extension of a currently approved collection of information concerning Form 8809 (Application for Extension of Time To File Information Returns). There are no changes being made to the form. Written comments, which should be received on or before August 31, 2020, should be directed to www.reginfo.gov/public/do/PRAMain. Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function. For more information, see ¶173L.

        (Read Cheetah) »

For more information, visit http://www.wolterskluwerlb.com/rbcs.