Spencer’s Benefits Reports NetNews – April 11, 2014


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Featured This Week

New Reports

  • Survey: 2014 PBGC Interest Rates, 3/14 (619.5.-53)

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  • Survey: IRS Monthly Segment Rates, 3/14 (101.2.-9)


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  • Analysis: Interest Rates For Funding Calculations, 3/14 (101.2.-7)


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  • Survey: Monthly Retirement Plan Interest Rates, 3/14 (101.2.-1)


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April 11, 2014

Employee Premium Tax Credit Notices From Exchanges On The Way, Says Ernst & Young

Since open enrollment in the health insurance exchanges ended as of March 31, 2014, employers should be prepared to start receiving notices from the exchanges to indicate if an employee has received a premium tax credit. Since the employer mandate was delayed until 2015 or 2016 depending on the size of the employer, these notices are not as important this year as they will be in 2015 and beyond. However, employers need to have a procedure in place for dealing with these notices, according to Ali Master, national director of business incentives & credits, indirect tax services at Ernst & Young at a recent webinar…

(Read Intelliconnect) »

IRS Provides Simplified Safe Harbor Procedures To Validate Rollover Contributions

In Rev. Rul. 2014-9, the Internal Revenue Service has issued a revenue ruling providing simplified safe harbor due diligence procedures that a plan administrator may use to determine the validity of a rollover contribution…

(Read Intelliconnect) »

ACA Will Have Little Effect On Costs Or Coverage In Near Term For Most People

Approximately 230 million people, about 70 percent of the U.S. population, will see very little change in their premiums due to the Patient Protection and Affordable Care Act (ACA), according to a study by the American Institute for Economic Research (AIER). These are mostly individuals who are covered by employer-sponsored health insurance or public assistance programs…

(Read Intelliconnect) »

April 10, 2014

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) »

Cost Of ACA To Large Employers Could Be Up To $5,900 Per Employee

When looking at increases in health care costs solely due to the Patient Protection and Affordable Care Act (ACA), the cost of the ACA to large employers (those with 10,000 or more employees) is estimated to be between $4,800 to $5,900 per employee, according to recent research from the American Health Policy Institute. The study, The
Cost of the Affordable Care Act to Large Employers, contained responses from 100 large employers, and intended to isolate the ACA’s role in increasing health care costs—separate from the larger trends taking place in health care, such as the aging workforce or the rate of health care inflation. In addition, the study does not take into account possible off-setting savings generated by the ACA…

(Read Intelliconnect) »

Plans That Don’t Conduct Standard Transactions Should Be Exempt From Certification Of HIPAA Compliance, Group Suggests

Controlling health plans (CHP) that are not engaged in standard transactions should be exempt from the certification of Health Insurance Portability and Accountability Act of 1996 (HIPAA) compliance, according to recent comments from the American Benefits Council (Council) on the Department of Health and Human Services’ (HHS) proposed rule on administrative simplification…

(Read Intelliconnect) »

April 9

Application Of The Windsor Decision And Rev. Rul. 2013-17 To Qualified Retirement Plans

In Notice 2014-19, the Internal Revenue Service has released guidance on the application (including the retroactive application) of the decision in
Windsor, and the holdings of Rev. Rul. 2013-17 to retirement plans qualified under Code Sec. 401(a)….

(Read Intelliconnect) »

IRS Will Adopt “Aggregate” IRA Rollover Limit For Post-2014 Rollovers

In Announcement 2014-15, the Internal Revenue Service has announced that it intends to follow the U.S. Tax Court’s interpretation of the statutory one-rollover-per-year limitation on individual retirement account (IRA) rollovers “on an aggregate basis.” The IRS has previously applied the one-per-year limitation on an IRA-by-IRA basis, as indicated in Publication 590 and has issued proposed regulations consistent with that application…

(Read Intelliconnect) »

House Approves New Pension Rules For Cooperative Small Employer Charity Plans

Bipartisan legislation that would establish new funding and disclosure rules for Cooperative Small Employer Charity (CSEC) plans has cleared both houses of Congress. The Cooperative and Small Employer Charity Pension Flexibility Act of 2013 (S. 1302; H.R. 4275) was approved by the Senate in January 2014 and was passed by the House on March 24, 2014. The bill is expected to be signed by the President…

(Read Intelliconnect) »

April 8, 2014

PBGC Proposes To Amend Treatment Of Defined Contribution Funds Rolled To Defined Benefit Plan That Later Terminates

The Pension Benefit Guaranty Corporation (PBGC) has issued proposed regulations amending and clarifying the treatment of funds that were rolled over from a defined contribution plan such as a 401(k) to a defined benefit plan, where the defined benefit plan was later terminated and is being trusteed by the PBGC. Describing it as a way to accumulate higher returns and obtain lifetime income, the PBGC has stated that the proposed regulations eliminate concerns that “amounts rolled over would suffer under guarantee limits should PBGC step in a pay benefits.” The proposed regulations were published in the April 2
Federal Register

(Read Intelliconnect) »

HHS To Process Medicare Requests For Eligible Recipients In Same-Sex Marriages

On April 3, the Department of Health and Human Services (HHS) introduced its new policy of allowing the Social Security Administration (SSA) to process requests under Medicare Part A and Part B special enrollment periods as well as for reductions in Part B and premium Part A late enrollment penalties for qualifying individuals in same sex marriages. According to the announcement, the HHS is enacting this policy change due to the recent Supreme Court decision in
U.S. v Windsor, which found that the Defense of Marriage Act (DOMA) could not prevent the Medicare administration from recognizing same-sex marriages for the purposes of determining eligibility for the federal program. The FDA also has released guidance on this issue clarifying the FDA’s interpretation of the terms “spouse” and “family” in light of

(Read Intelliconnect) »

IRS Announces Deadline To Submit Determination Letter Applications For Pre-Approved DC Plans

In Announcement 2014-16, the Internal Revenue Service has announced that starting May 1, 2014 and ending April 30, 2016, it will accept determination letter applications from employers under the second six-year remedial amendment cycle for pre-approved defined contribution plans…

(Read Intelliconnect) »

April 7, 2014

Law Eliminates Deductible Limits For Employer-Sponsored Plans In Small Group Market

The Protecting Access to Medicare Act of 2014 (P.L. 113-93) eliminates the deductible limits for employer-sponsored health plans in the small group market. Specifically, Sec. 213 of the law repeals Section 1302(c)(2) of the Patient Protection and Affordable Care Act, which had placed limits on deductibles in employer-sponsored health plans in the small group market, subject to the law’s actuarial value requirements. These limits on deductibles are not in effect for the 2014 and 2015 plan years…

(Read Intelliconnect) »

Employers Need To Concentrate On Systems For ACA Compliance Now, Say Experts At Ernst & Young

Even though compliance with the Patient Protection and Affordable Care Act’s (ACA) employer mandate has been delayed until 2015 (and to 2016 for employers with 50 to 99 full-time employees) and employers will not have to comply with the ACA’s reporting requirements until early 2016, it is important for employers to concentrate now on getting their systems in place to record this information, noted experts at Ernst & Young at a recent webinar entitled,
Practical Discussion of the Affordable Care Act: Implementation Implications for Your Business Processes, Financial and Technology Systems, and Internal Controls

(Read Intelliconnect) »

IRS Modified 403(b) Pre-Approved Plan Procedures, Extends Filing Deadline

In Rev. Proc. 2014-28, the Internal Revenue Service has modified its procedures for issuing opinion and advisory letters for 403(b) pre-approved plans (i.e., 403(b) prototype plans and 403(b) volume submitter plans). The modifications are effective April 14, 2014. The deadline to submit 403(b) pre-approved plans for opinion and advisory letters is extended to April 30, 2015…

(Read Intelliconnect) »