Products December 30, 2015

ICMA-RC Enhances Website

The enhancements include additional tools to help educate participants about saving for retirement.
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ICMA-RC, provider of retirement plans for public-sector employees, recently launched its redesigned website, www.icmarc.org.  

The website’s enhancements include improved usability, streamlined design, and an emphasis on popular retirement planning resources, along with additional tools to help educate participants about saving for retirement. The enhancements carry through to ICMA-RC’s participant and plan sponsor online resources, and are optimized across all platforms to include the Web and mobile devices such as phones and tablets.

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“Being available to our public-sector clients is critical, and we feel that these enhanced resources will play a key role in continuing to provide the highest level of service to them,” says Gregory Dyson, senior vice president, chief Operations & Marketing officer.

In August, ICMA-RC announced that it added transaction capabilities to its mobile device application.
Compliance December 30, 2015

Nonqualified Plan Sponsor Settles FICA Taxes Lawsuit

A federal district court previously found that Henkel Corp. effectively reduced nonqualified retirement plan participants’ benefits by not properly withholding taxes.
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A court has approved a settlement agreement between Henkel Corp. and its nonqualified retirement plan participants concerning Henkel’s failure to withhold participants’ Federal Income Contributions Act (FICA) taxes at the time contributions were made, as required by the plan. 

The settlement amount is $3,350,000, and includes attorneys’ costs, any award to the lead plaintiff in the case and litigation expenses. The settlement also provides that retirees will receive a 40% gross up of benefit distributions to cover their tax expenses. 

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In February, the U.S. District Court for the Eastern District of Michigan found that, rather than properly withholding nonqualified retirement plan participants’ Federal Income Contributions Act (FICA) taxes at the time contributions were made, as required by the plan, Henkel Corp. caused participants to pay these taxes at the time of each benefit payment, effectively reducing their anticipated retirement benefits.

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