Pension & Benefits NetNews – November 19, 2019

 

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Featured This Week

 

Employee Benefits Management News

 

  • IRS issues 2020 adjusted limits for various benefits,
  • HHS increases penalties for HIPAA noncompliance
  • Failure to encrypt mobile devices leads to $3 million HIPAA settlement
  • More employers add education assistance programs

Pension Plan Guide News

 

  • IRS issues 2020 retirement benefit COLAs
  • IRS issues proposed regs that update required minimum distribution tables
  • PBGC provides 4010 financial information reporting waiver

 

Employee Benefits Management News

 

IRS issues 2020 adjusted limits for various benefits

In Rev. Proc. 2019-44, the Internal Revenue Service provides a variety of inflation-adjusted figures for 2020, including figures for cafeteria plans, long-term care, medical savings accounts (MSAs) and transportation fringe benefits. For more information see ¶2129E.

        (Read Cheetah) »

HHS increases penalties for HIPAA noncompliance

The Department of Health and Human Services (HHS) has issued a final rule that includes the agency’s annual inflation-related adjustments to civil monetary penalties for certain violations of the Health Insurance Portability and Accountability Act (HIPAA). The annual adjustments are required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, and were effective as of November 5, 2019. For more information see ¶2129F.

        (Read Cheetah) »

Failure to encrypt mobile devices leads to $3 million HIPAA settlement

The University of Rochester Medical Center (URMC) has agreed to pay $3 million to the Office for Civil Rights (OCR) at the U.S. Department of Health and Human Services (HHS) and take substantial corrective action to settle potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules. For more information, see ¶2129H.

        (Read Cheetah) »

More employers add education assistance programs

Employers continue to expand their Total Rewards offerings to attract, engage and retain top performing employees, according to recent research from WorldatWork. For more information see ¶2129J.

        (Read Cheetah) »

Pension Plan Guide News

 

IRS issues 2020 retirement benefit COLAs

The IRS has released the 2020 cost-of-living adjustments to retirement plan limits. A few of the pension plan limitations will not change for 2020 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. However, other limitations will change because the increase in the index did meet the statutory thresholds. For example, the limitation on the annual benefit under a defined benefit plan under Code Sec. 415(b)(1)(A) increases from $225,000 to $230,000 for 2020, while the limitation for defined contribution plans under Code Sec. 415(c)(1)(A) increases for 2020 from $56,000 to $57,000. The Code Sec. 402(g)(1) limitation on the exclusion for elective deferrals increases from $19,000 to $19,500. The limitation used in the definition of “highly compensated employee” under Code Sec. 414(q)(1)(B) is increased from $125,000 to $130,000 for 2020. The annual compensation limit increases from $280,000 to $285,000. The dollar limitation concerning the definition of “key employee” in a top-heavy plan is increased from $180,000 to $185,000. For more information, see ¶17167v.

        (Read Cheetah) »

IRS issues proposed regs that update required minimum distribution tables

The IRS has issued proposed regulations that update life expectancy and distribution period tables that are used to calculate required minimum distributions (RMDs) from defined contributions plans and individual retirement accounts. The tables reflect the general increase in life expectancy. The proposed tables would apply for distribution calendar years beginning on or after January 1, 2021, with transition relief. Distribution periods under the new rules would generally increase between one and two years. Retirees and beneficiaries would be able to withdraw slightly smaller amounts from their plans each year. They could leave larger amounts in tax-favored retirement accounts for a slightly longer period of time, to account for the possibility that they may live longer. For more information, see ¶20265b.

        (Read Cheetah) »

PBGC provides 4010 financial information reporting waiver

The PBGC has provided a waiver concerning compliance with the annual financial and actuarial information required to be reported under ERISA Sec. 4010 and regulations. The PBGC is waiving the requirement to report member-specific financial information in connection with consolidated financial statements, subject to certain conditions. ERISA Sec. 4010 requires certain underfunded plans to report identifying, financial, and actuarial information to the PBGC. Contributing sponsors, and each member of a contributing sponsor’s controlled group, that maintain substantially underfunded plans must submit annual financial and actuarial reports to the PBGC. ERISA Reg. Sec. 4010.9 provides the reporting requirements with respect to financial information to be included with a 4010 filing for each member of the filer’s controlled group (excluding exempt entities). The PBGC explains that, in general, financial statements for the fiscal year ending within the information year (including balance sheets, income statements, cash flow statements, and notes to the financial statements) must be provided for each non-exempt controlled group member. For more information, see ¶19,975Z-37.

        (Read Cheetah) »

 

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