Compliance August 30, 2005

IRS Releases DC Plan Document Language

August 30, 2005 (PLANSPONSOR.com) - The Internal Revenue Service (IRS) is lending a hand to plan sponsors drafting plan documents by supplying wording for defined contribution programs that meet the Internal Revenue Code.
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The suggested language for a wide variety of plan provisions is contained in the IRS Defined Contribution Listing of Required Modifications and Information Package (LRM) [8-2005] which officials posted to the IRS Web site on Monday.

According to the IRS, the 119-page LRM language satisfies the tax code as amended through the Job Creation and Worker Assistance Act of 2002. The latest guidance replaces the 3-2005 information package and the 6-2005 revisions to DC LRM#49, the IRS said.

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“Such language may or may not be acceptable in different plans depending on the context in which used,” officials cautioned in the document. “We have prepared this package to assist sponsors who are drafting or redrafting plans to conform to applicable law and regulations, and we hope that it will be a key factor in enabling us to process and approve master and prototype plans more quickly.

IRS also noted that LRMs on the issue of cross-tested, profit-sharing plans are still currently under revision.

The new LRM is  here .

Compliance August 29, 2005

DoL Issues Notice of Form LM-30 Changes

August 29, 2005 (PLANSPONSOR.com) - The Department of Labor's (DoL's) Office of Labor Management Standards (OLMS) has published a Notice of Proposed Rulemaking to update the Form LM-30, required by the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA).
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The LM-30 disclosure form is required to be used by labor union officers and employees to report potential conflicts of interest, including those involving union benefit plans.

In a press release, the DoL said its OLMS ended a “grace period” for union officers and employees to comply with the statutory LM-30 filing requirements on August 15.   Along with the AFL-CIO and other unions, it provided extensive assistance on what transactions and financial activities should be reported.   During the grace period, the OLMS received over 10,000 submissions, compared to 60 to 90 filed annually in past years, according to the release.

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The DoL, in its news release, says the proposed changes to the Form LM-30 seeks to simplify filing requirements and close loopholes in the current form by:

  • Explaining key terms used in the statute and providing examples of financial matters that must be reported,
  • eliminating exemptions that allow filers to exclude certain financial matters that would otherwise be part of LMRDA reporting requirements and could present potential conflicts of interests for union officers and employees
  • making the report clearer for union members to review by adding a summary table on the front page of the report and supporting schedules.

The DoL will receive public comment on the notice before October 28 via the web portal OLMS-REG-1215-AB49@dol.gov .

The published notice can be found    here .

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