Pension & Benefits NetNews – January 21, 2020

 

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Featured This Week

 

Employee Benefits Management News

 

  • 2020 standard mileage rates released
  • New WHD opinion letter addresses FMLA eligibility
  • SECURE Act allows qualified tuition plans to pay expenses for apprenticeships, student loans
  • DOL issues annual adjustments to penalties for 2020
  • Supreme Court will hear ACA contraceptive coverage case

Pension Plan Guide News

 

  • IRS issues 2019 required amendments list for individually designed plans
  • PBGC approves AAA’s updated alternative arbitration procedure
  • IRS issues updated mortality improvement rates and static mortality tables for 2021

 

Employee Benefits Management News

 

2020 standard mileage rates released

The IRS has released the optional standard mileage rates for 2020. Most taxpayers may use these rates to compute deductible costs of operating vehicles for business, medical, and charitable purposes. Some members of the military may also use these rates to compute their moving expense deductions. For more information, see ¶2130F.

        (Read Cheetah) »

New WHD opinion letter addresses FMLA eligibility

On January 7, 2020, the Department of Labor released a new opinion letter, FMLA2020-1-A, addressing eligibility under the Family and Medical Leave Act (FMLA). The letter, signed by Administrator Cheryl M. Stanton, is the official written opinion by the Wage and Hour Division on how the FMLA applies in the specific circumstances presented by the person or entity requesting the letter. For more information, see ¶2130I.

        (Read Cheetah) »

SECURE Act allows qualified tuition plans to pay expenses for apprenticeships, student loans

The SECURE Act, which was enacted as part of the Further Consolidated Appropriations Act, 2020 (P.L. 116-94), contains a provision that expands Code Sec. 529 qualified tuition plans. The SECURE Act modifies Code Sec. 529 qualified tuition plans to allow tax-free distributions for expenses associated with registered apprenticeship programs. Plans also can allow tax-free distributions of certain amounts used to make payments on principal or interest of a qualified education loan. For more information see ¶2130M.

        (Read Cheetah) »

DOL issues annual adjustments to penalties for 2020

The Department of Labor (DOL) has issued a final rule to adjust the amounts of civil penalties assessed or enforced under its regulations. Those adjustment amounts pertain to regulations enforced by the DOL’s EBSA, Wage and Hour Division, OSHA, and other agencies. For more information, see ¶2130N.

        (Read Cheetah) »

Supreme Court will hear ACA contraceptive coverage case

The U.S. Supreme Court has granted certiorari in Little Sisters of the Poor v. Pennsylvania and Trump v. Pennsylvania, consolidating the cases and allotting a total of one hour for oral argument on the Affordable Care Act’s contraception coverage exemption rules.

        (Read Cheetah) »

Pension Plan Guide News

 

IRS issues 2019 required amendments list for individually designed plans

The IRS has released the 2019 Required Amendments List for individually designed qualified retirement plans and 403(b) plans. The list identifies certain changes in qualification requirements that became effective in 2019 that may require a retirement plan to be amended in order to remain qualified. December 31, 2021 generally is the last day of the remedial amendment period with respect to a disqualifying provision arising as a result of a change in qualification requirements that appears on the 2019 RA List and to a form defect arising as a result of a change in 403(b) requirements that appears on the 2019 RA List. In addition, December 31, 2021 is generally the plan amendment deadline for a disqualifying provision arising as a result of a change in qualification requirements that appears on the 2019 RA List as well as for a form defect arising as a result of a change in 403(b) requirements that appears on the 2019 RA List. However, a later date may apply to a governmental plan (as defined in Code Sec. 414(d)). For more information, see ¶17,168.

        (Read Cheetah) »

PBGC approves AAA’s updated alternative arbitration procedure

The Pension Benefit Guaranty Corporation (PBGC) has approved the American Arbitration Association’s (AAA’s) updated alternative arbitration procedure, pursuant to ERISA Sec. 4221 and PBGC Reg. Sec. 4221.14. The PBGC’s approval of the AAA’s alternative arbitration procedure is effective January 1, 2020. The Multiemployer Pension Plan Amendments Act of 1980 (“MPPAA”) requires “any dispute” between an employer and a multiemployer pension plan concerning a withdrawal liability determination to be “resolved through arbitration.” As required under the MPPAA, the PBGC promulgated regulations covering default arbitration procedures. However, in lieu of the default procedures, under Reg. Sec. 4221.14, an arbitration may be conducted in accordance with an alternative arbitration procedure approved by the PBGC. Under PBGC Reg. Sec. 4221.21(d), the PBGC will approve an application if it determines that the proposed procedures will be substantially fair to all parties involved in the arbitration of a withdrawal liability dispute, and that the sponsoring organization is neutral and able to carry out its role under the procedures. For more information, see ¶19,981Z-85.

        (Read Cheetah) »

IRS issues updated mortality improvement rates and static mortality tables for 2021

The IRS has provided the updated mortality improvement rates and static mortality tables to be used under Code Sec. 430(h)(3)(A). These rates are used to calculate the funding target and other items for valuation dates occurring during calendar year 2021. Also included are modified “unisex” mortality tables for use in determining minimum present value under Code Sec. 417(e)(3) for distributions with annuity starting dates that occur during stability periods beginning in calendar year 2021. The IRS explains that IRS Reg. §1.430(h)(3)-1 provides the rules for mortality tables used under Code Sec. 430(h)(3)(A) for plan years beginning on or after January 1, 2018. The mortality tables used under Code Sec. 430(h)(3)(A) are based on the tables in the RP-2014 Mortality Tables Report, adjusted for mortality improvement. The mortality improvement rates for valuation dates occurring during 2021 are the mortality improvement rates in the Mortality Improvement Scale MP-2019 Report (issued by the Retirement Plans Experience Committee (RPEC) of the Society of Actuaries. For more information, see ¶17,168C.

        (Read Cheetah) »

 

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