As we previously discussed in our May 19, 2016 SW Benefits Update, the Department of Labor (“DOL”) recently issued final regulations on fiduciary conflicts of interest in retirement programs. Since 2010 when the DOL first proposed regulations addressing self-interested advice to retirement plan and IRA participants, the rule has been widely criticized by some in […]
In a case of first impression in the Ninth Circuit, the Court held that the Booz Allen Hamilton, Inc. Stock Rights Plan (“SRP”) was not subject to ERISA because its primary purpose was not to provide deferred compensation or other retirement benefits. As background, ERISA applies to “employee welfare benefit plans” and “employee pension benefit […]
The 2015 Form 5500 added some new optional compliance questions for the 2015 Forms 5500 and 5500-SF. In December 2015, the IRS issued frequently asked questions on the new compliance questions and strongly encouraged plan sponsors to answer the questions. On February 18, the IRS changed course and announced that plan sponsors should not complete […]
The Supreme Court has provided additional clarity on the Fifth Third Bancorp v. Dudenhoeffer decision. In Dudenhoeffer, the Supreme Court held that a fiduciary decision to invest in employer stock is not deemed to be prudent; however, in bringing a claim for a fiduciary breach, plaintiffs must allege an alternative action that a plan fiduciary […]
Mid-year changes to safe harbor 401(k) plans have long been thought to be available in only very limited circumstances. However, the IRS recently released guidance in Notice 2016-16 that significantly increases the scope of permissible mid-year changes to safe harbor 401(k) plans. Generally, safe harbor 401(k) plan provisions must be adopted (and participants must be […]
Last July, in Announcement 2015-19, the IRS announced that it was terminating its determination letter program for individually designed qualified retirement plans, other than for new or terminating plans. This week, in Notice 2016-03 the IRS provided us with specific transition guidance on the winding down of its program. Specifically, the IRS announced that: Controlled […]
Who doesn’t love a good checklist? I know I do. In the rapidly changing world of employee benefits and executive compensation law, checklists can be particularly helpful to make sure important issues don’t fall through the cracks. To help folks stay apprised of changes in the law, changes they might need to make to their […]
The Treasury Department and the IRS recently issued final regulations (the “2015 Final Regulations”) relating to hybrid retirement plans, including cash balance pension plans. The 2015 Final Regulations provide anti-cutback relief to allow hybrid plans to be amended to change the interest crediting rate to an interest crediting rate that is a market rate of […]
The IRS recently announced cost of living adjustments for 2016. In general, the dollar limitations for retirement plans remained the same. The key dollar amounts are noted below, all of which remain unchanged from 2015. Maximum Qualified Retirement Plan Dollar Limits 2015/2016 Limit on Section 401(k) deferrals (Section 402(g)) $18,000 Dollar limitation for catch-up contributions (Section 414(v)(2)(B)(i)) $6,000 Limit on […]
As a reminder, the annual Form 5500 deadline is quickly approaching. Calendar year employee benefit plans that applied for an extension must file Forms 5500 by Thursday, October 15, 2015. The Form 5500 Annual Return/Report of Employee Benefit Plan is a consolidated annual report developed by the Department of Labor (DOL), Internal Revenue Service and […]
