2017-2018 IRS Priority Guidance Plan includes many employee benefits projects

Numerous employee benefits projects are included in the IRS’s 2017-2018 Priority Guidance Plan. The Plan describes areas in which the IRS intends to issue final regulations, proposed regulations, and other guidance, including regularly scheduled guidance, such as interest rates and COLAs. The Plan also includes burden reduction projects. The IRS notes that, as in the […]

Plan administrator’s interpretation of ambiguous plan terms in calculating pension benefit of disabled participant upheld as reasonable

A plan administrator’s interpretation of ambiguous plan terms in calculating the final average compensation of a disabled employee, resulting in a reduced pension benefit, was not arbitrary and capricious according to the U.S. Court of Appeals in Philadelphia (CA-3). The fact that the plan sponsor funded and administered the plan suggested a conflict of interest, […]

PBGC seeks comments on termination of single-employer plans and missing participants

The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) extend approval, with modifications, of the collection of information in its regulations on the termination of single-employer plans, missing participants, and implementing forms and instructions. The PBGC is proposing to provide that the plan administrator of a plan terminating […]

PBGC increases maximum monthly benefit guarantee for 2018.

The Pension Benefit Guaranty Corporation (PBGC) has announced that the maximum monthly insurance benefit for participants in underfunded pension plans terminating in 2018 is $5,420.45 per month or $65,045 per year for those who retire at age 65. On its website, the PBGC has provided a chart that shows the 2018 monthly maximum benefit guarantees […]

House GOP unveils sweeping tax reform bill with retirement provisions

House Republicans on November 2, 2017 unveiled their much-anticipated tax reform legislation, the Tax Cuts and Jobs Act (HR 1). The 429-page bill, which represents the House Ways and Means Committee’s first legislative offer to significantly overhaul the U.S. Tax Code, includes a number of pension-related provisions but does not include, at least initially, the […]

Participant’s missed plan loan installment payments did not violate level amortization requirement because they were properly cured

A participant’s missed installment payments for a Code Sec. 401(k) plan loan did not violate the level amortization requirement under Code Sec. 72(p)(2)(C) because these payments were cured within the applicable cure period by payment of the amount due or by the refinancing of the loan, according to an IRS Chief Counsel advice memorandum. The […]

Prohibition on loans from 403(b) plan participant’s account to church-related employer applies to indirect loans

The rule prohibiting loans from a Code Sec. 403(b)(9) retirement account of a participant to the participant’s employer, a church-related organization, under the exclusive benefit requirement of IRS Reg. Sec. 1.403(b)-9(2)(i)(C), applies not only to loans made directly to the employer, but also to indirect loans made to the employer, according to an IRS Chief […]

IRS seeks comments on Form 5330

The IRS is seeking comments on an extension without change of a currently approved information collection request concerning Form 5330 (Return of Excise Taxes Related to Employee Benefit Plans). The collection request is being submitted to the Office of Management and Budget (OMB) for review and clearance. Form 5308 is used to compute and collect […]

IRS seeks comments on Form 5308

The IRS is soliciting public comments on the proposed extension of a currently approved information collection concerning Form 5308 (Request for Change in Plan/Trust Year). The form is used to request permission to change the plan or trust year for a pension benefit plan. There are no changes being made to the form at this […]

PBGC creates new pilot program for mediation of certain Termination Liability Collection and Early Warning Program cases

The Pension Benefit Guaranty Corporation (PBGC) has announced the creation of a new pilot program to offer mediation in certain Termination Liability Collection and Early Warning Program cases. PBGC’s Pilot Mediation Project will allow parties to resolve cases with the assistance of a skilled, neutral, and independent dispute resolution professional in a timely and cost-effective […]