Compliance September 22, 2014

IRS Issues Guide for Retirement Plan Reporting

September 22, 2014 (PLANSPONSOR.com) – The Internal Revenue Service (IRS) has created a guide for retirement plan sponsor reporting and disclosure responsibilities.
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Retirement plans are generally required by law to file certain forms with the IRS and the Department of Labor (DOL) and to send out notices to affected parties when certain events happen. Different reporting and disclosure requirements apply depending on the type of plan and the plan’s circumstances.

The Reporting and Disclosure Guide for Employee Benefit Plans was prepared by the IRS and reviewed by the Treasury Department, the DOL, and the Pension Benefit Guarantee Corporation (PBGC). It is intended to be used as a quick reference tool for certain basic reporting and disclosure requirements under the Employee Retirement Income Security Act (ERISA).

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This Guide should be used in conjunction with the DOL Retirement Plan Reporting and Disclosure Guide at www.dol.gov/ebsa/pdf/rdguide.pdf.

More information about retirement plan reporting and disclosure responsibilities is here.

Compliance September 19, 2014

IRS Issues Final Rules for Hybrid Retirement Plans

September 19, 2014 (PLANSPONSOR.com) – The Internal Revenue Service (IRS) has issued final regulations for hybrid retirement plans.
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The agency said the regulations provide guidance with respect to certain issues that are not addressed in the 2010 final regulations and make certain other changes to the final regulations.

The 2010 final regulations provide that certain rules otherwise applicable to benefits under a defined benefit plan are not violated in a cash balance or pension equity plan design. The new final regulations expand the hybrid plan formulas to which this relief applies.

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The final regulations also include special rules with respect to variable interest crediting rates and special age discrimination rules, including rules with respect to the market rate of return limitation.

The final rules are effective September 19, 2014, and generally apply to plan years beginning on or after January 1, 2016.

In conjunction with the final rules, the IRS issued a proposed rule that would permit a hybrid plan that does not comply with the requirement that the plan not provide for interest credits (or equivalent amounts) at an effective rate that is greater than a market rate of return to comply with that requirement by changing to an interest crediting rate that is permitted under the final hybrid plan regulations, without violating the anti-cutback rules.

The final regulations for hybrid retirement plans are here.

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