Compliance July 6, 2018

Tax Reform Change to Plan Loans Requires Updates to Documents

The new law extends the time a participant has to repay loans from 60 days after an offset to the date their tax return is due.

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Prior to the passage of the Tax Cuts and Jobs Act on December 22, 2017, when a participant with an outstanding loan from their defined contribution (DC) plan was terminated from their employment, their loan was immediately due, law firm Haynes and Boone notes in a blog post. If the participant was unable to repay the loan, their account balance would be offset by the amount of the outstanding loan and treated as a taxable distribution. The participant had up to 60 days to repay the loan.

The new law now extends that repayment period to the date the participant’s federal income tax is due for the year in which the plan loan offset occurred. Plan sponsors need to ensure that their plan documents, including the plan document, the plan’s loan policy, and the required notice of rollover eligibility, are updated to reflect this change in the law, Haynes and Boone’s Employee Benefits and Executive Compensation Practice Group notes.

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Deals and People July 6, 2018

Retirement Industry People Moves

Church Pension Fund announces series of appointments, and INTAC joins Ascensus TPA Solutions division.

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The Church Pension Fund (CPF) announced the election of The Reverend Thomas J. Brown as chair of its Board of Trustees (CPF Board), effective upon the close of General Convention. He succeeds Barbara Creed, who served as chair since 2015 and as vice chair from 2009 to 2015. In addition, Canon Kathryn Weathersby McCormick (subject to her re-election to the CPF Board) and The Rt. Reverend Brian Prior have been elected vice chairs, succeeding The Reverend Timothy J. Mitchell and Sandra S. Swan.

 

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Reverend Brown currently serves as rector of The Parish of the Epiphany in Winchester, Massachusetts, and has served on the CPF Board since 2009. Canon McCormick, who currently serves as president of Province IV, previously served as canon for Administration and Finance for the Diocese of Mississippi, and has served on the CPF Board since 2012. Bishop Prior is the ninth Bishop of the Episcopal Church in Minnesota and has served on the CPF Board since 2015.

 

INTAC Joins Ascensus TPA Solutions Division

 

Ascensus has entered into an agreement to acquire INTAC Actuarial Services, Inc. (INTAC). The third-party administration (TPA) firm will immediately become part of Ascensus’ TPA Solutions division.

 

Based in Ridgewood, New Jersey, INTAC provides administration of employer-sponsored retirement plans for about 3,000 small to mid-sized companies, their owners, key executives and employees. INTAC also provides ongoing education to their clients and the professionals in the communities they service to ensure that they remain abreast of industry changes and issues.

 

“Geographically speaking, the tri-state and greater Delaware areas are important market expansion opportunities for our TPA Solutions division,” says Raghav Nandagopal, Ascensus’ executive vice president of corporate development and M&A. “With its strong historical growth, successful long-term track record, and associate-focused culture, INTAC is an ideal business to help Ascensus achieve its immediate and long-term growth plans.”  

 

 

 

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