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Update on Participant Benefit Statements Required by the Pension . . . Take a participant-directed plan where employees make § 401(k) contributions throughout the year, matching contributions are made quarterly, and profit sharing contributions are made once a year Might there be an obligation to report at least the § 401(k) contributions made during the year with respect to those statements?
IRS Clarifies Substantial Risk of Forfeiture Under Internal Revenue . . . The IRS issued proposed regulations to clarify the application of Code section 83, which provides that property transferred in connection with the performance of services is included in the service provider's income once it is transferable or no longer subject to a substantial risk of forfeiture
DOL Guidance on Pension Benefit Statements The Department of Labor (DOL) has issued Field Assistance Bulletin 2006-03 (December 20, 2006) to provide guidance on the new requirements for defined benefit and defined contribution plans to furnish participants and beneficiaries with regular pension benefit statements
IRS Endorses Automatic Enrollment Cafeteria Plans - BenefitsLink Once enrolled, the employee's salary is reduced pre-tax to pay for part of the cost of coverage All employees are given a notice that explains the automatic enrollment process and their rights to opt out (i e , elect cash instead of the default group health benefit)
Recent IRS Guidance Notes How COBRA Applies to New Defined Contribution . . . Through its notice and revenue ruling, the IRS has explained the basic COBRA structure for HRAs Generally, they are just like all other group health plans; therefore, employers must provide COBRA coverage once a qualifying event occurs How COBRA specifically applies in particular cases must be individually addressed by employers
W hite Paper Generics – The New Push For Profi - BenefitsLink In pricing retail pharmacy claims, PBMs use a “maximum allowable cost” (MAC) methodology MACs were created by the Health Care Financing Administration (HCFA) in the 1980s to smooth generic drug cost variations and give pharmacies an incentive to purchase lowest cost products Actual price variations among multiple generic drugs for the same original brand name drug (once off patent) can
Fact Sheet: Delinquent Filer Voluntary Compliance Program Delinquent Filer Voluntary Compliance Program The Delinquent Filer Voluntary Compliance (DFVC) Program is designed to encourage voluntary compliance with the annual reporting requirements under the Employee Retirement Income Security Act (ERISA) The DFVC Program gives delinquent plan administrators a way to avoid potentially higher civil penalty assessments by satisfying the program’s
Deceased Participants Estate Can Sue to Recover . . . - BenefitsLink The Third Circuit Court of Appeals ruled that ERISA does not bar the estate of a deceased 401 (k) plan participant from suing the participant's ex-spouse to recover benefits distributed to her as the named beneficiary where she previously waived the right to those benefits as part of their divorce decree
Template-Word - . 5 margins - BenefitsLink In other words, the IRS has not addressed whether plans can be amended to remove the distribution triggers once they are added Plan sponsors should consider this ambiguity before moving forward with adding these rules The Notice makes clear that additional guidance should be forthcoming in the form of regulations