Pension & Benefits NetNews – October 2, 2018

 

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Featured This Week

 

Employee Benefits Management News

 

  • Employee lacks Article III standing to challenge ACA interim final rules
  • Insured with bipolar disorder limited to 24 months of benefits
  • Moving expense reimbursements incurred prior to 2018 are excluded from employee wages
  • IRS issues guidance on employer credit for paid family and medical leave

Pension Plan Guide News

 

  • IRS updates safe harbor explanations that are provided to recipients of eligible rollover distributions
  • PBGC issues final regs that facilitate mergers of multiemployer plans
  • IRS authorizes 401(k) plan sponsor to condition matching contribution on payment of student loan debt

 

Employee Benefits Management News

 

Employee lacks Article III standing to challenge ACA interim final rules

An employee who receives health insurance through her employer failed to establish Article III standing to allow her suit challenging two interim final rules under the Patient Protection and Affordable Care Act (ACA) to proceed in relation to coverage for hormonal medications she uses for birth control and for non-contraceptive medical purposes. For details, see ¶2118Z.

        (Read Intelliconnect) »

Insured with bipolar disorder limited to 24 months of benefits

A disability insurer did not abuse its discretion in terminating an insured’s benefits after 24 months in accordance with the policy’s limitation of coverage for disabilities due to mental illness, the U.S. Court of Appeals for the Second Circuit ruled in a summary order. For more information, see ¶2119B.

        (Read Intelliconnect) »

Moving expense reimbursements incurred prior to 2018 are excluded from employee wages

Employer payments or reimbursements in 2018 for employees’ moving expenses incurred prior to 2018 are excluded from the employee’s wages for income and employment tax purposes. For more information, see ¶2119E.

        (Read Intelliconnect) »

IRS issues guidance on employer credit for paid family and medical leave

The IRS has issued a notice that provides guidance on the employer credit for paid family and medical leave under Code Sec. 45S. The notice also announced that the Department of the Treasury and the IRS intend to publish proposed regulations under Code Sec. 45S. For more information see ¶2119F.

        (Read Intelliconnect) »

Pension Plan Guide News

 

IRS updates safe harbor explanations that are provided to recipients of eligible rollover distributions

The IRS has modified the two safe harbor explanations in Notice 2014-74, 2014-50 I.R.B. 937, that may be used to satisfy the requirement under Code Sec. 402(f) that certain information be provided to recipients of eligible rollover distributions. The safe harbor explanations as modified by this notice take into consideration certain legislative changes and recent guidance, including changes related to qualified plan loan offsets (as defined in section 13613 of the Tax Cuts and Jobs Act of 2017 (“TCJA”), P.L. 115-97) and guidance issued on self-certification of eligibility for a waiver of the deadline for completing a rollover (described in Rev. Proc. 2016-47, 2016-37 I.R.B. 346), and include other clarifying changes. To assist with the implementation of the modified safe harbor explanations, this notice contains two appendices. Appendix A contains two model safe harbor explanations: one for distributions that are not from a designated Roth account, and a second for distributions from a designated Roth account. Appendix B provides instructions on how to amend the safe harbor explanations contained in Notice 2014-74 to reflect the revisions included in the modified safe harbor explanations in Appendix A. For more information, see ¶17164x.

        (Read Intelliconnect) »

PBGC issues final regs that facilitate mergers of multiemployer plans

The Pension Benefit Guaranty Corporation (PBGC) has released final regulations that implement Section 121 of the Multiemployer Pension Reform Act of 2014 (MPRA), which clarified the PBGC’s authority to facilitate the merger of two or more multiemployer plans under Title IV of ERISA. Specifically, the final regulations provide guidance on the process of requesting a facilitated merger under ERISA Sec. 4231(e), including a request for financial assistance under ERISA Sec. 4231(e)(2). In addition, the regulations reorganize and update the existing regulatory requirements applicable to mergers and transfers between multiemployer plans. These regulations are effective October 15, 2018. For more information, see ¶160k.

        (Read Intelliconnect) »

IRS authorizes 401(k) plan sponsor to condition matching contribution on payment of student loan debt

The IRS has issued a private letter ruling authorizing a 401(k) plan to offer a student loan benefit program, pursuant to which the sponsoring employer would make a nonelective contribution on behalf of an employee who has made student loan repayments. The contributions would replace the generally applicable matching contributions available under the plan, but would not be conditioned, directly or indirectly on an employee’s elective contributions. Accordingly, the IRS concluded that the nonelective contributions made by the employer would not violate the contingent benefit rule because they would be conditioned only on whether an employee made a student loan repayment during a pay period. For more information, see ¶17436r.

        (Read Intelliconnect) »

 

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