Pension & Benefits NetNews – December 3, 2019

 

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Featured This Week

 

Employee Benefits Management News

 

  • Amicus briefs filed in ACA contraceptive coverage case, response due date extended
  • IRS updates guidance for deductible business, charitable, medical and moving expenses
  • Agencies propose new cost-sharing disclosures for group health plans, health insurance issuers
  • Lifetime health benefits had vested; employer must restore benefits

Pension Plan Guide News

 

  • EBSA, IRS, PBGC issue advance informational copies of 2019 Form 5500 series
  • PBGC increases maximum monthly benefit guarantee limits for 2020
  • PBGC issues 2020 table showing present value of maximum benefit guarantee

 

Employee Benefits Management News

 

Amicus briefs filed in ACA contraceptive coverage case, response due date extended

Several amicus briefs have been filed in Commonwealth of Pennsylvania v. Trump, in which the Third Circuit held that Pennsylvania and New Jersey are likely to succeed in proving the agencies did not follow the Administrative Procedure Act (APA) and that the contraceptive exemption regulations are not authorized under the Affordable Care Act (ACA) or required by the Religious Freedom Restoration Act (RFRA). For more information, see ¶2129L.

        (Read Cheetah) »

IRS updates guidance for deductible business, charitable, medical and moving expenses

The IRS has released guidance that updates Rev. Proc. 2010-51, I.R.B. 2010-51, 883 to reflect changes made to Code Secs. 67 and 217 by the Tax Cuts and Jobs Act (TCJA). Rev. Proc. 2010-51 provides rules for using the standard mileage rates when calculating the deductible expenses of operating a vehicle for business, charitable, medical, or moving expense purposes. For more information, see ¶2129M.

        (Read Cheetah) »

Agencies propose new cost-sharing disclosures for group health plans, health insurance issuers

Through a combined effort, the Departments of Labor, Health and Human Services, and Treasury have announced a proposed rule setting out requirements for group health plans and health insurance issuers in the individual and group markets to disclose cost-sharing information upon request, to a participant, beneficiary, or enrollee (or his or her authorized representative), including an estimate of such individual’s cost-sharing liability for covered items or services furnished by a particular provider. For more information, see ¶2129O.

        (Read Cheetah) »

Lifetime health benefits had vested; employer must restore benefits

A successor employer could not terminate retirees’ health care benefits because the benefits had vested and so survived the expiration of the operative collective bargaining agreement, which provided for lifetime benefits, the Seventh Circuit U.S. Court of Appeals has ruled. For more information see ¶2129P.

        (Read Cheetah) »

Pension Plan Guide News

 

EBSA, IRS, PBGC issue advance informational copies of 2019 Form 5500 series

The Employee Benefits Security Administration (EBSA), the IRS, and the Pension Benefit Guaranty Corporation (PBGC) have issued advance informational copies of the 2019 Form 5500 annual return/report, related instructions and schedules, and 2019 Form 5500-SF and instructions. The advance copies cannot be used to file a 2019 form. Plans should file Form 5500 or Form 5500-SF electronically using the EFAST2 system. The instructions for 2019 Forms 5500 and 5500-SF have been updated to reflect an increase in the maximum civil penalty amount assessable under ERISA Sec. 502(c)(2), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (P.L. 114-74). The maximum penalty was increased to $2,194 a day for a plan administrator who fails or refuses to file a complete or accurate Form 5500 report. The increased penalty under Sec. 502(c)(2) is applicable for civil penalties assessed after January 23, 2019, whose associated violation(s) occurred after November 2, 2015 – the date of enactment of the Act. The instructions also note that filers should check for any further inflation adjustments because the penalty amounts are adjusted after the Forms 5500 and instructions are issued. For more information, see ¶168k.

        (Read Cheetah) »

PBGC increases maximum monthly benefit guarantee limits for 2020

The Pension Benefit Guaranty Corporation (PBGC) has issued a table of the maximum monthly guarantee limits showing the 2020 monthly maximum benefit guarantees for retirees from age 75 to 45. According to the PBGC, the guarantee limits for single-employer plans that fail in 2020 will be 3.65% higher than the limits that applied in 2019, due to indexing. Thus, for example, the maximum monthly insurance benefit for participants in underfunded pension plans terminating in 2020 is $5,812.50 per month or $69,750 per year for those who retire at age 65 and receive a straight life annuity. The maximum benefit is adjusted for retirees taking earlier retirement or electing survivors’ benefits. A participant may receive benefits in excess of the maximum guarantee if certain conditions apply. ERISA requires that the maximum guaranteed amount be adjusted annually based on changes in the Social Security contribution and benefit base. For more information, see ¶19981z83.

        (Read Cheetah) »

PBGC issues 2020 table showing present value of maximum benefit guarantee

The Pension Benefit Guaranty Corporation (PBGC) has issued a table showing the present value of the PBGC’s maximum benefit guarantee for 2020. The present value of the maximum guarantee for purposes of Code Sec. 436(d)(3)(A)(ii) and ERISA §206(g)(3)(C)(i)(II) is changing for 2020. The table is based upon methodology that is set out in PBGC Technical Update 07-4. For more information, see ¶19981z84.

        (Read Cheetah) »

 

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