Spencers and Benefits NetNews – September 13, 2013

 

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Featured This Week

New Reports

  • Survey: IRS Monthly Segment Rates, 8/13 (101.2.-9)
       

(Read Intelliconnect) »

  • Analysis: Interest Rates For Funding Calculations, 8/13 (101.2.-7)
       

 

(Read Intelliconnect) »

  • Survey: Monthly Retirement Plan Interest Rates, 8/13 (101.2.-1)
       

 

(Read Intelliconnect) »

  • Courts: Fiduciary Duty Claims Dismissed Over Sale Of Stock, 8/13 (605.05.-9)
       

 

(Read Intelliconnect) »


News

September 13, 2013

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) »

No Fines For Employers That Fail To Comply With Certain ACA Notice Provisions

The Employee Benefits Security Administration (EBSA) has issued a Frequently Asked Question (FAQ) stating that employers will not be fined for failing to provide, by Oct. 1, 2013, written notices to their employees about the health insurance Marketplace, as mandated by the Patient Protection and Affordable Care Act (ACA). According to the EBSA, companies covered by the Fair Labor Standards Act should provide such written notices, but there will be no fine or penalty imposed if they do not…

(Read Intelliconnect) »

Insider Information Could Not Be Used To Rebut Presumption Of Prudence

Plan fiduciaries were not required to use material, nonpublic information regarding a company’s financial situation in determining whether to continue an investment in company stock, according to the Second Circuit Court U.S. Court of Appeals in In re: Lehman Bros. ERISA Litigation. The public information available to the fiduciaries, the court further ruled, was insufficient to rebut the applicable presumption of prudence…

(Read Intelliconnect) »

September 12, 2013

Employees Concerned About Impact Of Health Reform

Ninety percent of employers said that they have received questions from employees asking how their benefits will be impacted by the Patient Protection and Affordable Care Act (ACA), according to recent research from the Midwest Business Group on Health (MBGH). The second concern among employees is rising costs—MBGH found that 63 percent of employers have fielded questions about the cost of employee benefits plans…

(Read Intelliconnect) »

Expenses Paid By 401(k) Participants In Mutual Funds Continued To Decline In 2012

The expenses that 401(k) plan participants incurred for investing in mutual funds—which include equity, bond, and hybrid funds—declined in 2012, continuing the downward trend of the past decade and a half, according to recent research from the Investment Company Institute (ICI)…

(Read Intelliconnect) »

September 11, 2013

Text: IRS, Notice 2013-57, Preventive Health Care For Purposes Of HSAs

(Read Intelliconnect) »

Health Plan Will Not Fail To Qualify As HDHP Because It Provides Preventive Care Without A Deductible: IRS

In Notice 2013, 57, the Internal Revenue Service issued clarification that a health plan will not fail to qualify as a high-deductible health plan (HDHP) merely because it provides preventive health care without a deductible, as required by the Patient Protection and Affordable Care Act (ACA)…

(Read Intelliconnect) »

Retirement Plan Sponsorship, Participation Grows Post-Recession: EBRI

Since the end of the economic recession, a higher percentage of workers are working for employers that offer retirement plans and a higher percentage of them are participating in the plans, according to recent research from the Employee Benefit Research Institute (EBRI)…

(Read Intelliconnect) »

September 10, 2013

Text: IRS, Proposed Rule, Information Reporting By Applicable Large Employers On Health Insurance Coverage Offered Under Employer-Sponsored Plans

(Read Intelliconnect) »

Text: IRS, Proposed Rule, Information Reporting Of Minimum Essential Coverage

(Read Intelliconnect) »

IRS Issues Proposed Rules On Information Reporting Under ACA

The Internal Revenue Service has issued two sets of proposed rules to implement the information reporting requirements under the Patient Protection and Affordable Care Act (ACA). The regulatory proposals reflect an ongoing dialogue with representatives of employers, insurers, other reporting entities and individual taxpayers. The regulations are proposed to apply for calendar years beginning after Dec. 31, 2014. Both rules were published in the September 9 Federal Register

(Read Intelliconnect) »

Most Organizations View DOMA Decision Positively: IFEBP

On June 26, 2013, the Supreme Court, in U.S. v. Windsor, struck down Section 3 of the Defense of Marriage Act (DOMA), which had provided that the definition of marriage applied only to the legal union of one man and one woman, and that the definition of spouse referred only to a person of the opposite sex who was a husband or wife. In August 2013, the International Foundation of Employee Benefit Plans (IFEBP) administered a survey to measure organizations’ reactions to the DOMA ruling, and found that a majority of organizations (77.1 percent) reacted positively to the DOMA ruling (35.6 percent very positively and 41.5 percent somewhat positively). Just 4.9 percent of organizations viewed the decision very negatively. Smaller organizations generally reacted less positively to the ruling compared to larger organizations, IFEBP noted…

(Read Intelliconnect) »

September 9, 2013

EBSA Issues Clarification Of Procedure For Notice Of Coverage Options And 90-Day Health Benefits Waiting Period

Third parties may fulfill employers’ obligations to send employees, by Oct. 1, 2013, a notice of coverage options available through state health insurance marketplaces, or exchanges, as set forth in Fair Labor Standards Act (FLSA) Sec. 18B, as added by the Patient Protection and Affordable Care Act (ACA) Sec. 1512, according to frequently asked questions (FAQs) from the Employee Benefits Security Administration (EBSA)…

(Read Intelliconnect) »

Low Interest Rates Impact Retirement Readiness

Today’s historically low interest rate environment impacts the retirement readiness of most employees, according to recent research from the Employee Benefit Research Institute (EBRI). Using its Retirement Security Projection Model (RSPM), EBRI found that more than a quarter of Baby Boomers and Gen Xers who would have had adequate retirement income under historical averages return assumptions are simulated to end up running short of money in retirement if today’s historically low interest rates are assumed to be a permanent condition, and if retirement income/wealth is assumed to cover 100 percent of simulated retirement expenses…

(Read Intelliconnect) »