Earlier this week, Senators Manchin and Schumer reached an agreement securing the former’s support for a tax bill proposed by Senate Democrats entitled the “Inflation Reduction Act of 2022” (the “Act”). Included in the Act are several provisions intended to increase tax revenue, among them a provision designed to raise $14 billion in
Carried Interest/Promote in 2022: Action Items for Investment, Private Equity, Real Estate Fund Managers
Investment, private equity, and real estate fund managers should consider becoming familiar with the complex final regulations on the preferential tax treatment of “carried interest” under Section 1061 of the Internal Revenue Code (Code) that are generally effective for taxable years beginning on or after Jan. 1, 2022. More…
Private Equity Investments In 401(K) Plans – The DOL Says Not So Fast
Hot button ERISA fiduciary issues remain a focus for investment committees of 401(k) plans in 2022. From “excessive” fee litigation – including litigation over the duty to monitor the fees charged by various mutual funds made available to plan participants (the U.S. Supreme Court reaffirmed this duty in January 2022) – to the U.S. Department
TOP 5 EMPLOYEE BENEFIT PLAN OPPORTUNITIES FOR EMPLOYERS TO CONSIDER IN 2021
A spate of recent legislation and IRS guidance promises to make 2021 an active year for any employer seeking to provide its employees with a competitive array of employee benefits. My “top 5” list of employee benefits that an employer should introduce or enhance in 2021, to improve retention and/or recruitment, is set forth below:
Don’t Miss Out: Deadlines are Upon Us
Deadlines are a large part of employee benefit plan administration. The past 12 – 18 months have contributed to potential confusion about standard deadlines and added new deadlines plan administrators will not want to overlook. During this period, the IRS created a one-time window deadline, published extensions for some plans’ deadlines, and other deadlines were
DOL Guidance on ESG Investing by Retirement Plans: Investment Committees Should Handle with Care
The United States Department of Labor (the “DOL”) recently issued a proposed rule on the fiduciary requirements under the federal pension law, ERISA, that apply to the selection and monitoring of environmental, social, and corporate governance (“ESG”) investments in retirement plans. Under the proposed rule, which would be effective 60 days after it becomes finalized,
COVID-19 And Late Remittances of Employee Deferrals to 401(k) Plans
Many employers facing economic challenges because of COVID-19 have considered several possibilities for reducing their contributions to their 401(k) plans. Whether freezing safe harbor matching or nonelective contributions or deciding against making discretionary matching and/or profit-sharing contributions, the goal has been the same: reduce their employee benefits costs.
What many employers have not focused on
ISS COVID-19 Compensation Guidance More Flexibility (Maybe) For Public Companies, But More Tax Risk (Maybe) For NEOS
The executive and equity compensation plans, agreements, policies and arrangements (collectively, the “Plans”) of publicly traded companies receive close scrutiny from various shareholder advocacy groups during the annual proxy season, which is well underway for 2020. These groups advise institutional shareholders whether to vote for, to abstain from voting on, or to vote
Critical Qualified Plan Fiduciary Issues For Employers To Consider In Light Of Covid-19
With the business disruptions and market turbulence being wrought by COVID-19, many employers sponsoring qualified retirement plans are facing key decisions about their 401(k), profit sharing, defined benefit, and cash balance plans. From considering potential cost-savings measures such as suspending safe harbor contributions to a 401(k) plan and/or discretionary contributions to a profit sharing plan,
First Crack in the Armor of the Segal Blend?
The Segal Group is the premier actuarial firm in the country providing services for hundreds of multi-employer pension funds. For almost 40 years it has used its own methodology, known as the “Segal Blend” to calculate employers’ withdrawal liability successfully without an adverse ruling by either a court or an arbitrator in hundreds of cases.