Spencer and Benefits NetNews – January 23, 2015


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Featured This Week


New Reports


  • Analysis: IRC Sec. 415(c) Defined Contribution Limitations Include All Employee Contributions And Forfeitures, 1/15 (109.2.-1)

    (Read Intelliconnect) »

  • Analysis: Defined Benefit Limitation Under IRC Sec. 415(b): Dollar Limit Adjusted In Certain Circumstances, 1/15(109.1.-1)
    (Read Intelliconnect) »
  • Analysis: IRC Sec. 25B Provides “Saver’s Credit” Of Up to $2,000 For Contributions To A Retirement Plan Or An IRA, 1/15 (101.5.-1)
    (Read Intelliconnect) »
  • Survey: 2015 PBGC Interest Rates, 1/15 (619.5.-55)
    (Read Intelliconnect) »



January 23, 2015


Text: IRS, IRS, Notice 15-08, Section 45R – 2015 Guidance with Respect to the Tax Credit for Employee Health Insurance Expenses of Certain Small Employers

        (Read Intelliconnect) »


IRS provides relief for Iowa small businesses unable to obtain SHOP coverage for 2015

The IRS has issued transition relief allowing small businesses to claim the employer health insurance credit under Code Sec. 45R, even though they are unable to offer a qualified health plan (QHP) in 2015 through a Small Business Health Options Program (SHOP) Exchange because there are no QHPs available in the county in which they have their primary business address. For tax years beginning in 2014, the credit is available only with respect to premiums paid by a small employer for a QHP offered by the employer through a SHOP Exchange, the credit is available only for a two-consecutive-year period, and the maximum credit rate is increased to 50 percent from 35 percent for eligible small employers, and to 35 percent from 25 percent for tax-exempt eligible small employers. . . .

        (Read Intelliconnect) »


Employer failed to timely demand arbitration under approved AAA rules

Questions about whether other rules and procedures of a pension fund and the American Arbitration Association had been approved by the PBGC, as required, did not change the fact that the rules defining timely initiation of arbitration had been approved, and, under those rules, an employer charged with withdrawing from a multiemployer pension plan had not timely invoked arbitration, the U.S. Court of Appeals in Chicago (CA-7) has ruled. . . .

        (Read Intelliconnect) »


January 22, 2015


Voluntary Benefits Are Important To 9 Out Of 10 Employees, Aflac Survey Shows

Most American employees (88 percent) at least somewhat agree they consider voluntary insurance benefits a part of a comprehensive benefits program according to the
2014 Aflac WorkForces Report, a study released by Aflac. With plans such as accident, critical illness and hospital confinement, employees view voluntary benefits as a way to fill in coverage gaps.
In fact, 63 percent see a growing need for voluntary benefits options in 2014 compared to previous years, and 48 percent of employees say they are more knowledgeable about voluntary benefits than they were last year. . . .

        (Read Intelliconnect) »


Senator Begins Health Care Agenda Targeting The ACA

Sen. Bill Cassidy, R-La., on January 14 introduced the No Obamacare Mandate Bill and the Employee Health Care Protection Bill to start moving forward on repealing the Patient Protection and Affordable Care Act (ACA) and replacing it with what he termed “patient-centered solutions for Americans.”

        (Read Intelliconnect) »


January 21, 2015


More Than Half Of Employers Feel Unprepared To Manage ACA Compliance Requirements

More than half of large employers (1,000+ employees) are unprepared to comply with all ACA regulatory requirements, according to a white paper recently released by ADP®. Findings from research examining how companies are approaching compliance with the Patient Protection and Affordable Care Act (ACA) (P.L. 111-148) are contained in ADP’s Affordable Care Act and Employer Confidence: Navigating a Complex Compliance Challenge. . . .

        (Read Intelliconnect) »


Widow’s Claim For Survivor Retirement Benefits Was Time-Barred

A claim for survivor retirement benefits “accrued” in 2004, when the retirement benefits ended due to the death of plan participant, not in 2012 when the participant’s widow discovered the waiver of joint and surviving spouse annuity that provided the basis for the cessation of benefits, according to the U.S. Court of Appeals at Philadelphia (CA-3). Thus, the widow’s claim was ruled to be barred by the statute of limitations. . . .

        (Read Intelliconnect) »

January 20, 2015


Contributing Employer Could Not Sue Trustees For Negligent Multiemployer Plan Asset Management

An employer that contributed to a multiemployer pension plan did not have a cause of action against trustees for negligent plan asset management under the federal common law for ERISA pension plans because Congress has established a comprehensive statutory scheme and announced its intention to occupy the field and because the employer’s proposed negligence claim did not satisfy the requirements for the court to create a new right under federal common law, according to the Sixth Circuit U.S. Court of Appeals in
DiGeronimo Aggregates, LLC v. Zemla. . . .

        (Read Intelliconnect) »


IRS FAQs Clarify After-Tax Contribution Rollover Rules

Where a participant’s account balance in a plan includes both pretax and after-tax amounts, the IRS has clarified that guidance provided in IRS Notice 2014-54 does not alter the requirement that each distribution from a plan must include a proportional share of the pretax and after-tax amounts in the account. Accordingly, any partial distribution from the plan must include some of the pretax amounts in an account. . . .

        (Read Intelliconnect) »

January 19, 2015


Federal Interest Rates Announced For Pensions

The following interest rates have been announced for use in the operation and administration of qualified pension plans: . . .

        (Read Intelliconnect) »


PBGC Issues January, February 2015 Interest Rates For Valuing Terminating Pension Plans

For single-employer pension plans terminating January through March 2015, and for multiemployer plans involved in a mass withdrawal, the interest rate established by the PBGC for calculating immediate annuities is 2.89, down from the 3.10 percent rate that applied in October through December 2014. The interest rate for calculating immediate lump sums in February 2015 is 1.00 percent, the same rate that applied in January 2015. . . .

        (Read Intelliconnect) »