The Department of Labor recently issued a fact sheet intended to help employers understand their retirement plan obligations under the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”). The law provides that eligible employees that return to employment following qualified military service must be treated as though their military service was not a
Joshua Rafsky
IRS No Longer Forbids Pension Plans From Offering Lump Sum Payouts To Retirees Currently Receiving Payments
Over the past several years, sponsors of defined benefit pension plans have examined and implemented ways to reduce their pension liabilities. This is sometimes referred to as “de-risking.” One de-risking option is for a plan to offer a limited-duration window where participants who normally do not have the option to do so can elect to…
IRS Proposed Regulations Implementing Changes To Hardship Distribution Rules
Earlier this year we reported on legislative changes that modified the requirements related to hardship distributions from 401(k) plans. Recently, the IRS issued proposed regulations that if finalized will implement those changes.
Background
The Internal Revenue Code (the “Code”) and associated regulations generally place restrictions on participants’ ability to withdraw their elective deferrals from 401(k)…
IRS Finalizes Regulations Allowing Plan Forfeitures to Fund QNECS and QMACS
The IRS recently finalized regulations that allow 401(k) plans to use forfeiture money to fund qualified non-elective contributions (“QNECs”) and qualified matching contributions (“QMACs”). These regulations finalize proposed regulations issued last year (you can read our prior coverage of the proposed regulations here).
By way of background, QNECs and QNECs are types of employer…
Illinois Secure Choice Retirement Savings Program No Longer Mandatory?
The future of the Illinois Secure Choice Savings Program Act (Secure Choice) is uncertain following Governor Bruce Rauner’s amendatory veto which could make employer participation in the Secure Choice program optional.
The legislation, as enacted, makes participation in the Secure Choice program mandatory for covered employers that do not offer employees a qualified retirement plan.…
Illinois Secure Choice Savings Program – A Mandatory Retirement Plan
Employers in Illinois with at least 25 employees must comply with the Illinois Secure Choice Savings Program Act (Secure Choice) or offer employees an employer-sponsored retirement plan. Secure Choice is set to roll out in November 2018.
Secure Choice applies to Illinois employers that do not sponsor a qualified retirement plan. The program, adopted in…
RECENT LEGISLATION WILL AFFECT 401(K) HARDSHIP DISTRIBUTIONS
Just a few weeks ago, the federal government avoided a potentially lengthy government shutdown when Congress passed and the President signed into law the Bipartisan Budget Act of 2018 (the “Act”). You may already know that the Act extends funding for the federal government until March 23, 2018. However, what you may not know is…
An Update on the DOL’s Fiduciary Rule
The DOL’s much anticipated (or maligned depending on the audience) Fiduciary Rule expands the definition of what constitutes investment advice under ERISA and thereby increases the number and types of retirement plan service providers that are considered ERISA fiduciaries (see our prior coverage of the Fiduciary Rule here, here and here). It also…
The New ERISA Claims and Appeals Regulations for Disability Benefits
The Employee Benefits Security Administration of the U.S. Department of Labor recently published final regulations governing the ERISA claims and appeals process that will apply to all claims for disability benefits filed on or after January 1, 2018. These regulations add procedural safeguards to the claims and appeals process for disability benefits, and largely track…
January 1st is Quickly Approaching – Have you Reviewed your Health Plan for Section 1557 Compliance?
Earlier this year the U.S. Department of Health and Human Services (“HHS”) finalized regulations that implement Section 1557 of the Affordable Care Act (“Section 1557”). You can read our prior discussions of these regulations in our blog post and newsletter article. As the new year approaches, we wanted to take a moment to remind…