Pension & Benefits NetNews – April 28, 2020

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Plan’s choice of interest rate to calculate withdrawal liability not an abuse of discretion

A multiple-employer pension plan’s board did not abuse its discretion when it used what an employer described as an “unreasonably low” interest rate to calculate the amount of the employer’s withdrawal liability, the U.S. Court of Appeals in San Francisco (CA-9) has ruled. Contested amount At the district court level, the employer argued that the […]

Administration’s budget proposals would limit retirement deductions for upper-income taxpayers

President Obama’s fiscal 2013 budget proposal, unveiled on February 13, 2012, would trim the deductions for certain retirement plan contributions by upper-income taxpayers. The budget proposal would reinstate the limitation on itemized deductions and the 36% and 39.6% tax rates for upper-income taxpayers. The budget proposal would also limit the tax value of specified deductions […]

IRS provides tips on how to determine if a plan loan’s interest rate is “reasonable”

When a retirement plan allows participant loans, that loan is an investment of plan assets and must bear a “reasonable” rate of interest. In the latest issue of Retirement News for Employers, the IRS provides guidance on how to determine if a retirement plan loan interest rate is reasonable. Under ERISA Reg. §2550.408b-1(e), a plan’s […]

Employee retirement confidence grows, Towers Watson survey finds

A recent survey by Towers Watson has found that U.S. employees’ confidence in their ability to retire comfortably continued to rebound from post-recession lows last year. The Towers Watson Retirement Attitudes Survey was conducted in June and July 2011 and includes responses from 9,218 full-time U.S. employees at non-government organizations with 1,000 or more employees. […]

Pension benefits denial claim time-barred under applicable New Jersey limitation period

A pension plan participant’s action to recover plan benefits, filed 10 years after the initial denial of his request for benefits, was time-barred by the applicable New Jersey state law limitations period, the U.S. Court of Appeals in Philadelphia (CA-3) has ruled in Kapp v. Trucking Employees of North Jersey Welfare Fund, Inc.-Pension Fund. Plan […]

Aon Hewitt Study Shows Record-High Participation In DC Plans Driven By Automatic Enrollment

from Spencer’s Benefits Reports: In 2010, 75.8% of eligible employees participated in their company’s defined contribution retirement plan, according to a survey of 120 large companies by Aon Hewitt. This rate is higher than in 2009 (73.7%) and is the highest level since Aon Hewitt began tracking this data in 2002. According to Aon Hewitt, […]

EBSA To Align Applicability Dates For Fee Disclosure Rules With Fiduciary Disclosures

from Spencer’s Benefits Reports: The Department of Labor’s Employee Benefits Security Administration (EBSA) has proposed to align the applicability dates for its retirement plan fee disclosure rules with its fiduciary-level fee disclosure interim final rule. The notice was published in the in the June 1 Federal Register. EBSA published an interim final ERISA Sec. 408(b)(2) […]

IRS grants tax relief to victims of flooding in Mississippi

The IRS has announced tax relief for taxpayers who reside or have a business in the federal disaster area of Adams, Bolivar, Claiborne, Coahoma, DeSoto, Humphreys, Issaquena, Jefferson, Sharkey, Tunica, Warren, Washington, Wilkinson, and Yazoo counties in Mississippi affected by flooding beginning on May 3, 2011. The relief extends until July 5, 2011 deadlines for […]

IRS releases draft 2009 Form 8955-SSA

The IRS has posted a draft version of 2009 Form 8955-SSA on its website. Comments on the draft form may be submitted to the IRS on its website. The IRS asks that the word “DRAFT” be included in the comments. The draft Form 8955-SSA, the Social Security Administration’s ERISA Form 8955-SSA 2-D Barcode Standards, IRS […]