Want to receive these Newsletters via E-mail?
About Links in this Newsletter
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.
If you aren’t a subscriber call 800-449-9525, or let us contact you about,
Contact us by sending an e-mail to
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
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.
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.
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.
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.
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.
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.
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.
For more information, visit http://www.wolterskluwerlb.com/rbcs.