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Dear
Partner Name,
The
Internal Revenue Service (IRS), Department of
the Treasury (Treasury) and Department of Labor
(DOL) have released their semiannual regulatory
agenda which lists regulations that they will
review or develop during the next year. Here are
highlights of their agenda items.
IRS/Treasury
Regulations
The IRS and Treasury expect to issue proposed
regulations on:
- Requirements
for the new Form SSA for plan years beginning
in 2009.
- The
determination of whether a plan is a governmental
plan.
- Rules
for Indian tribal governments.
- The
definition of highly compensated employee in
Code Section 414(q).
- Code
Section 415 limits under defined benefit plans
for plans with multiple annuity starting dates.
- Bona
fide severance pay plans and substantial risk
of forfeiture under governmental 457(b) plans.
The
IRS and Treasury expect to issue final regulations
on:
- Investment
diversification requirements for certain defined
contribution (DC) plans under §401(a)(35).
- An
employee’s right to defer receipt of an
immediately distributable benefit and the consequences
of failing to defer.
- Pension
Protection Act (PPA) requirements for cash balance
plans.
- The
calculation of the portion of an employee’s
accrued benefit derived from employee contributions
to a defined benefit (DB) plan.
- PPA
changes to the notice to employees when a plan
amendment significantly reduces the rate of
future benefit accruals.
- DB
plan funding and benefit restrictions under
§430 and §436.
- Minimum
required contributions for single employer DB
plans.
- The
determination of benefit liabilities and assets
for funding requirements.
- Accrual
rules for DB plans that use “the greater
of” two or more formulas.
- Multiemployer
DB plan funding including guidance for plans
in either endangered or critical status.
- Employee
stock purchase plans.
DOL
Regulations
The DOL expects to issue proposed regulations,
final regulations, or guidance on the following
topics:
- Individual
pension benefit statement requirements for participants
and beneficiaries.
- The
use of electronic communication.
- When
participant contributions become plan assets
under ERISA including a safe harbor whereby
the employer must submit contributions.
- Changes
to the ERISA disclosure requirements by PPA.
- Annual
funding notice for DB plans.
- Final
regulations under PPA regarding the furnishing
of multiemployer plan information upon request.
- Issues
related to qualified domestic relations orders.
DOL
“long-term actions” that are expected
to take over 12 months include:
- Clarify
and improve the information, including fees
and expenses, provided to participants and beneficiaries
in participant-directed DC plans to help participants
make an informed investment direction.
- Regulations
under ERISA §408(b)(2) that will ensure
that plan fiduciaries have access to information
necessary to determine whether an arrangement
with a party-in-interest is “reasonable”
and subject to the statutory exclusion.
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