Pension & Benefits NetNews – July 20, 2016

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Featured This Week

 

Employee Benefits Management News

 

  • ACA pushing companies toward outsourcing benefit administration
  • Employers are saving money on drug plans with generics and multi-tiers
  • DOL drastically hikes penalties for failures to meet notice, genetic information requirements
  • DOL proposes changes to reporting regulations; updates to Form 5500 series

Pension Plan Guide News

 

  • DOL announces release of proposed revisions to Form 5500 and proposed changes to its annual reporting regs
  • IRS updates to determination letter rules provide procedures for individually designed plans
  • PBGC reports show multiemployer plan program needs large premium increase

 

Employee Benefits Management News

 

ACA pushing companies toward outsourcing benefit administration

Many companies are turning to outsourcing for a variety of benefits programs, according to recent research from CFO Research and Prudential. According to the sixth annual survey of financial executives, companies express the strongest interest in outsourcing management of the Patient Protection and Affordable Care Act (ACA). For more information, see ¶2097T.

(Read Intelliconnect) »

Employers are saving money on drug plans with generics and multi-tiers

Employers are saving money on prescription drug plans by passing costs of some expensive drugs on to their employees via multi-tiers, according to survey results recently released by United Benefit Advisors (UBA). Generics were cited as another cost-saving measure. For more information, see ¶2097W.

(Read Intelliconnect) »

DOL drastically hikes penalties for failures to meet notice, genetic information requirements

The Department of Labor (DOL) has issued an interim 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 ¶2097Y.

(Read Intelliconnect) »

DOL proposes changes to reporting regulations; updates to Form 5500 series

The Department of Labor (DOL) has issued proposed revisions to modernize and improve the Form 5500 Annual Return/Report filed by private-sector employee benefit plans. If adopted, the changes generally would apply for plan years beginning on or after January 1, 2019. For more information, see ¶2098C.

(Read Intelliconnect) »

Pension Plan Guide News

 

DOL announces release of proposed revisions to Form 5500 and proposed changes to its annual reporting regs

The proposed revisions are intended to: (1) Modernize the financial statements and investment information filed about employee benefit plans; (2) Update the reporting requirements for service provider fee and expense information; (3) Enhance accessibility and usability of data filed on the forms; (4) Require reporting by all group health plans covered by Title I of ERISA; and (5) Improve compliance under ERISA and the Internal Revenue Code through new questions regarding plan operations, service provider relationships, and financial management of the plan.

The proposed regulations also would make improvements to the certification requirements for the limited scope audit requirements under 29 CFR 2520.103-8, and allow group health plans to use the Form 5500 to satisfy certain reporting requirements in the Affordable Care Act. The proposed changes to the DOL regulations are also needed to implement the form revisions. For more information, see ¶143u.

(Read Intelliconnect) »

IRS updates to determination letter rules provide procedures for individually designed plans

The IRS has modified its determination letter program for qualified plans to eliminate, as of January 1, 2017, the five-year remedial amendment cycle system for individually designed plans, currently set forth in Rev. Proc. 2007-44, 2007-2 C.B. 54. Effective January 1, 2017, a sponsor of an individually designed plan will be permitted to submit a determination letter application only for initial plan qualification, for qualification upon plan termination, and in certain other circumstances, as described in section 4.03(3) of this revenue procedure. For more information, see ¶17299v19.

(Read Intelliconnect) »

PBGC reports show multiemployer plan program needs large premium increase

The Pension Benefit Guaranty Corporation has issued two reports on the prospects of PBGC’s insurance programs, the Projections Report and the MPRA Report. While the financial position of the agency’s single-employer program is likely (but not certain) to improve, the agency’s multiemployer program is likely to run out of funds by 2025. Substantial increases in premium revenue will be needed to avoid cuts in multiemployer insurance program guarantees. For more information, see ¶143n.

(Read Intelliconnect) »

 

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