Pension & Benefits NetNews – May 10, 2016

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Featured This Week

 

Employee Benefits Management News

 

  • ACA mandates contributed to increase in medical stop loss coverage, insurer finds
  • Benefits consulting group advises what to do if you receive a marketplace notice
  • IRS issues 2017 inflation-adjusted amounts for HSAs
  • Employers say ACA is prompting them to hire more freelancers

Pension Plan Guide News

 

  • DOL issues class best interest contract exemption that allows entities that are ERISA fiduciaries by providing investment advice to receive compensation
  • DOL issues final prohibited transaction class exemption for principal transactions in certain investments between investment advice fiduciaries and plans, participant accounts, IRAs
  • DOL issues final amendment to and partial revocation of Class PTEs 86-128 and 75-1 that allows fiduciaries to receive compensation when they have certain transactions with plans and IRAs
  • PBGC final regs on annual financial and actuarial reporting codify MAP-21, HATFA, and BBA changes

 

Employee Benefits Management News

 

ACA mandates contributed to increase in medical stop loss coverage, insurer finds

An increase in the use of medical stop loss captives by companies that self-fund their employee health insurance plans is in part due to mandates in the Patient Protection and Affordable Care Act (ACA), such as unlimited lifetime benefit maximums. That’s according to a white paper issued by QBE North America, an operating division of global insurer QBE Insurance Group. For more information, see ¶2095Z.

(Read Intelliconnect) »

Benefits consulting group advises what to do if you receive a marketplace notice

Starting soon, some applicable large employers (ALEs) will receive unwelcome news from the IRS, in the form of marketplace notice, telling them that they are being assessed a nondeductible penalty because at least one of their full-time employees received subsidized coverage from the health care exchange. For more information, see ¶2096C.

(Read Intelliconnect) »

IRS issues 2017 inflation-adjusted amounts for HSAs

The IRS has issued inflation adjusted amounts under Code Sec. 223 for health savings accounts (HSAs) for 2017. For the amounts, see ¶2096E.

(Read Intelliconnect) »

Employers say ACA is prompting them to hire more freelancers

The Patient Protection and Affordable Care Act (ACA) is triggering companies to hire more freelancers, according to a new study from Field Nation, an online work platform, and executive development firm Future Workplace. For more information, see ¶2096H.

(Read Intelliconnect) »

Pension Plan Guide News

 

DOL issues class best interest contract exemption that allows entities that are ERISA fiduciaries by providing investment advice to receive compensation

The Labor Department has released a best interest contract exemption that contains an exemption from certain prohibited transactions provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (the Code). The provisions at issue generally prohibit fiduciaries with respect to employee benefit plans and individual retirement accounts (IRAs) from engaging in self-dealing and receiving compensation from third parties in connection with transactions involving the plans and IRAs. The exemption allows entities such as registered investment advisers, broker-dealers and insurance companies, and their agents and representatives, that are ERISA or Code fiduciaries by reason of the provision of investment advice, to receive compensation that may otherwise give rise to prohibited transactions as a result of their advice to plan participants and beneficiaries, IRA owners and certain plan fiduciaries (including small plan sponsors). The exemption is subject to protective conditions to safeguard the interests of the plans, participants and beneficiaries and IRA owners. The exemption affects participants and beneficiaries of plans, IRA owners and fiduciaries with respect to such plans and IRAs. For more information, see ¶16,650.

(Read Intelliconnect) »

DOL issues final prohibited transaction class exemption for principal transactions in certain investments between investment advice fiduciaries and plans, participant accounts, IRAs

The Labor Department has released an exemption from certain prohibited transactions provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (the Code) that generally prohibit fiduciaries with respect to employee benefit plans and individual retirement accounts (IRAs) from purchasing and selling investments when the fiduciaries are acting on behalf of their own accounts (principal transactions). The exemption permits principal transactions and riskless principal transactions in certain investments between a plan, plan participant or beneficiary account, or an IRA, and a fiduciary that provides investment advice to the plan or IRA, under conditions to safeguard the interests of these investors. The exemption affects participants and beneficiaries of plans, IRA owners, and fiduciaries with respect to such plans and IRAs. For more information, see ¶16,650A.

(Read Intelliconnect) »

DOL issues final amendment to and partial revocation of Class PTEs 86-128 and 75-1 that allows fiduciaries to receive compensation when they have certain transactions with plans and IRAs

EBSA has partially revoked Prohibited Transaction Exemptions (PTEs) 86-128 and 75-1, exemptions from certain prohibited transaction provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986 (the Code). The ERISA and Code provisions at issue generally prohibit fiduciaries with respect to employee benefit plans and individual retirement accounts (IRAs) from engaging in self-dealing in connection with transactions involving plans and IRAs. PTE 86-128 allows fiduciaries to receive compensation in connection with certain securities transactions entered into by plans and IRAs. The amendments increase the safeguards of the exemption. This document also contains a revocation of PTE 86-128 with respect to transactions involving investment advice fiduciaries and IRAs, and of PTE 75-1, Part II(2), and PTE 75-1, Parts I(b) and I(c), in light of existing or newly finalized relief, including the relief provided in the “Best Interest Contract Exemption.” For more information, see ¶16,650D.

(Read Intelliconnect) »

PBGC final regs on annual financial and actuarial reporting codify MAP-21, HATFA, and BBA changes

The Pension Benefit Guaranty Corporation (“PBGC”) is amending its regulation on Annual Financial and Actuarial Information Reporting to codify provisions of recent legislation and related guidance that affect reporting under ERISA section 4010. The final rule modifies the reporting waiver under the current regulation tied to aggregate plan underfunding of $15 million or less to be based on non-stabilized interest rates. In addition, the final rule adds new reporting waivers for smaller plans and for plans that must file solely on the basis of either a statutory lien resulting from missed contributions over $1 million or outstanding minimum funding waivers exceeding the same amount (provided the missed contributions or applications for minimum funding waivers were previously reported to PBGC). The final rule also provides alternative methods of compliance for reporting certain actuarial information and makes a few technical changes to the regulation. For more information, see ¶141U.

(Read Intelliconnect) »

 

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