Many employers adopt defined contribution retirement plans that have been pre-approved by the IRS. Plan sponsors of pre-approved plans submit the plans to the IRS to obtain approval of whether the form of the plan meets the requirements of Internal Revenue Code Section 401. These pre-approved plans are often referred to as “volume submitter plans” […]
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The Supreme Court recently decided a case that eliminates the “presumption of prudence” for plan fiduciaries relating to their investment in employer stock in retirement plans. In Fifth Third Bancorp v. Dudenhoeffer, the Supreme Court determined that fiduciaries of an employee stock ownership plan (“ESOP”) are not entitled to a presumption of prudence. Rather, the […]
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A summary plan description, or SPD, is the document that is given to participants and beneficiaries explaining the material terms of an ERISA plan. Both pension plans and welfare plans are required to provide SPDs to participants. An SPD generally must be provided when a participant first becomes covered by a plan. It also must […]
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Previously, the IRS issued guidance on what employers need to do in order to comply with the United States v. Windsor decision. The guidance insturcts employers on how and when to amend a qualified retirement plan if its current terms regarding marriage and the definition of spouse are inconsistent with Windsor. In short, the employer must adopt an […]
KH
Plan administrators that fail to timely file their Form 5500s can be subject to penalties under both ERISA and the Code. The Department of Labor’s Delinquent Filer Voluntary Compliance Program (“DFVCP”) provides plan administrators with the opportunity to pay reduced Department of Labor penalties for late Form 5500 filings. The DFVCP among other things, requires […]
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I gave a presentation last week at the Western Pension & Benefits Conference Phoenix Chapter Spring Conference entitled “Ding Dong DOMA’s Dead – The Supreme Court’s Same-Sex Marriage Ruling and Its Impact on Employee Benefit Plans.” Upon finishing my presentation, I realized my last few slides are a good checklist. On April 4th, the IRS […]
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Today, the IRS issued Notice 2014-19, which contains long awaited guidance on the application of the Supreme Court’s decision in United States v. Windsor. The Windsor case found section 3 of the Defense of Marriage Act (DOMA) unconstitutional. Sponsors of qualified retirement plans have been awaiting this guidance to determine how to apply the Windsor […]
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Since 2012, covered service providers (“CSPs”) such as recordkeepers and investment advisors have had to provide annual service and fee disclosures to plan fiduciaries under Section 408(b)(2) of ERISA. Plan fiduciaries cannot remain idle after receiving these disclosures — review of the disclosures is a fiduciary duty. The Department of Labor (“DOL”) requires fiduciaries to […]
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Last summer, the Supreme Court determined that the Defense of Marriage Act (“DOMA”) was unconstitutional. The Supreme Court’s ruling in United States v. Windsor had the effect of extending many employee benefits to same-sex spouses. Employee benefit plans were significantly impacted by the ruling, and, as a result, the IRS and the Department of Labor […]
KH
In Notice 2014-5, the IRS provided temporary relief from the Code’s nondiscrimination rules for certain defined benefit plans that are closed to new participants. (This is sometimes referred to as a “soft freeze.”). The temporary relief allows employers who sponsor a closed defined benefit plan and a defined contribution plan to comply with Code’s nondiscrimination […]
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