Pension & Benefits NetNews – July 6, 2015

 

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Featured This Week

 

Employee Benefits Management News

 

  • Supreme Court upholds ACA subsidies
  • Small firms are not self-insuring to avoid ACA compliance
  • Domestic partner benefits likely to decline in wake of Supreme Court decision on same-sex marriage, Aon Hewitt says
  • Interim transition relief continues for expatriate health plans, IRS says

Pension Plan Guide News

 

  • IRS issues temporary regs on application procedures for reduction of multiemployer DB plan benefits
  • IRS issues proposed regs on application procedures for reduction of multiemployer DB plan benefits
  • PBGC issues interim final regs specifying application process, notice requirements for partitions of multiemployer defined benefit plans under ERISA Title IV as amended by MPRA
  • IRS issues revenue procedure outlining application process for multiemployer DB plan seeking approval of reduction of benefits
  • Treasury Department appoints Kenneth Feinberg Special Master to review applications by multiemployer DB plan seeking approval of reduction of benefits

 

Employee Benefits Management News

 

Supreme Court upholds ACA subsidies

The Supreme Court has issued a 6-3 ruling in King v. Burwell, holding that Section 36B of the IRS Code’s tax credits are available to individuals in states that have a federal Health Insurance Exchange. The Court determined that, based on the broader structure of the Patient Protection and Affordable Care Act (ACA) Congress did not intend to limit tax credits to state Exchanges. For more information, see ¶2087Z.

        (Read Intelliconnect) »

Small firms are not self-insuring to avoid ACA compliance

After the Patient Protection and Affordable Care Act (ACA) was passed into law, there was some speculation that small firms might start self-insuring to avoid some of the costs of complying with the law. However, recent research from the Employee Benefit Research Institute (EBRI) has found that so far (up to 2013, the latest data available), there is no evidence that they are doing so. For details, see ¶2087W.

        (Read Intelliconnect) »

Domestic partner benefits likely to decline in wake of Supreme Court decision on same-sex marriage, Aon Hewitt says

In light of the Supreme Court’s decision legalizing same-sex marriage across the country, Aon Hewitt anticipates the number of companies offering domestic partner health care coverage may decline as employers look to streamline benefits. For more information, see ¶2088A.

        (Read Intelliconnect) »

Interim transition relief continues for expatriate health plans, IRS says

The IRS has issued interim guidance on the application of certain provisions of the Affordable Care Act (ACA) to expatriate health insurance issuers, expatriate health plans, and employers in their capacity as plan sponsors of expatriate health plans, as defined in the Expatriate Health Coverage Clarification Act of 2014 (EHCCA) (P.L. 113-235). For more information, see ¶2088D.

        (Read Intelliconnect) »

Pension Plan Guide News

 

IRS issues temporary regs on application procedures for reduction of multiemployer DB plan benefits

The IRS has released temporary regulations relating to multiemployer pension plans that are projected to have insufficient funds, at some point in the future, to pay the full benefits to which individuals will be entitled under the plans (referred to as plans in “critical and declining status”). The Multiemployer Pension Reform Act of 2014 (“MPRA”) amended the Internal Revenue Code to incorporate suspension of benefits provisions that permit these multiemployer plans to reduce pension benefits payable to participants and beneficiaries if certain conditions are satisfied. MPRA requires the Secretary of the Treasury, in consultation with the PBGC and the Secretary of Labor, to approve or deny applications by these plans to reduce benefits. As required by MPRA, these temporary regulations provide guidance implementing these statutory provisions. For more information, see ¶136P.

        (Read Intelliconnect) »

IRS issues proposed regs on application procedures for reduction of multiemployer DB plan benefits

The IRS has issued proposed regulations relating to multiemployer pension plans that are projected to have insufficient funds, at some point in the future, to pay the full benefits to which individuals will be entitled under the plans (referred to as plans in “critical and declining status”). The Multiemployer Pension Reform Act of 2014 (“MPRA”) amended the Internal Revenue Code to incorporate suspension of benefits provisions that permit these multiemployer plans to reduce pension benefits payable to participants and beneficiaries if certain conditions are satisfied. For more information, see ¶20,264B.

        (Read Intelliconnect) »

PBGC issues interim final regs specifying application process, notice requirements for partitions of multiemployer defined benefit plans under ERISA Title IV as amended by MPRA

The PBGC has issued an interim an interim final rule prescribing the application process and notice requirements for partitions of eligible multiemployer plans under title IV of ERISA, as amended by the Multiemployer Pension Reform Act of 2014 (MPRA). The interim final rule is published pursuant to section 122 of MPRA in order to carry out the provisions of section 4233 of ERISA. The PBGC is soliciting public comments on the interim final regulation. For more information, see ¶136Q.

        (Read Intelliconnect) »

 

IRS issues revenue procedure outlining application process for multiemployer DB plan seeking approval of reduction of benefits

This revenue procedure prescribes the application process for approval of a proposed benefit suspension in accordance with §432(e)(9)(G) and provides a model notice that a plan sponsor proposing a benefit suspension may use to satisfy the content and readability requirements of §432(e)(9)(F)(ii) and (iii)(II). See Appendix A for the model notice. This revenue procedure does not affect the standards that will be applied in reviewing an application for a suspension of benefits under §432(e)(9). For more information, see ¶17,299U-85.

        (Read Intelliconnect) »

 

Treasury Department appoints Kenneth Feinberg Special Master to review applications by multiemployer DB plan seeking approval of reduction of benefits

Treasury Secretary Jacob J. Lew has appointed Kenneth Feinberg as a Special Master to help provide a dedicated, impartial and informed review of applications proposing to reduce pension benefits. Feinberg will oversee Treasury’s implementation of Kline-Miller, including the review of applications to determine whether they meet the requirements set by Congress. He will also ensure that affected stakeholders have a single point of contact dedicated to this process. For more information, see ¶136U.

        (Read Intelliconnect) »

 

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