Compliance

Lump Sum Rule Challengers Lose Court Fight

November 26, 2007 (PLANSPONSOR.com) - A federal judge in Wisconsin has ruled that former American Family Insurance Group workers who claim they were coerced to take lump sum distributions before their normal retirement age cannot sue their employer's defined benefit plans.

DoL Proposes New Asset Types Allowed for Settlements

November 20, 2007 (PLANSPONSOR.com) - The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has announced a proposed amendment to an existing class exemption that would expand the categories of assets under the exemption that plans can accept to settle litigation with related parties, if the transaction is otherwise beneficial to the employee benefit plan.

IRS Publishes Taxable Wage Base for 2008

November 20, 2007 (PLANSPONSOR.com) - The Internal Revenue Service has issued Revenue Ruling 2007-71 providing the table of covered compensation for the 2008 year for use in determining contributions to defined benefit plans and permitted disparity.

"Winding Up" Program Informs UK Trustees

November 19, 2007 (PLANSPONSOR.com) - The UK's Pensions Regulator has issued a supplementary e-learning module, published as an additional learning tool to help trustees understand the "winding up" process.

Misdirected Participant Investments – A Case Study

Here's an interesting case study from our friends at Reish Luftman Reicher & Cohen: "Recently, a 401(k) plan trustee requested our advice regarding a failure of the plan service provider to allocate participant accounts in the manner described in participant enrollment forms."

ULLICO to Pay $20M to Settle Self-Dealing Charges by DoL

November 16, 2007 (PLANSPONSOR.com) - The U.S. Department of Labor announced a settlement requiring Union Labor Life Insurance Co. (ULLICO) of Washington, D.C., to pay back nearly $16.7 million in fees and compensation to benefit plans that invested in a pooled separate account holding plan assets for the benefit of employee benefit plan investors.

Feds Finalize Protective Gear Payment Rule

November 16, 2007 (PLANSPONSOR.COM) - The federal workplace safety agency has issued a final rule mandating that personal protective equipment (PPE) workers are required to have must be paid for by the employer in nearly all instances.

PBGC Deficit Continues to Shrink

November 15, 2007 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation's (PBGC) insurance program for single-employer pension plans reported a deficit of $13.1 billion in fiscal year 2007, according to the agency's Annual Management Report submitted to Congress.

IRS to Publish Sample Notice for Auto Enrollment Arrangements

November 15, 2007 (PLANSPONSOR.com) - To aid plan sponsors in satisfying the requirements of the IRS's proposed regulations for qualified automatic contribution arrangements (QACAs) and eligible automatic contribution arrangements (EACAs), the IRS has published a sample "Automatic Enrollment Notice" for a hypothetical QACA that permits EACA withdrawals on its Web site that satisfies notice requirements under Code sections 401(k)(13) and 414(w).

DoL Announces Changes to 2009 Form 5500

November 15, 2007 (PLANSPONSOR.com) - The U.S. Department of Labor's Employee Benefits Security Administration (EBSA), the Internal Revenue Service and the Pension Benefit Guaranty Corp. (PBGC) announced the publication of revisions to the Form 5500 annual return/report for plan year 2009.

Benefits Challenge Denied – Again

November 15, 2007 (PLANSPONSOR.com) - Two former Quaker Oats Co. employees fighting to receive additional pension benefits they say were promised them by Quaker have lost a second legal battle.

IRS Reminds Taxpayers about Retirement Savings Credit

November 13, 2007 (PLANSPONSOR.com) - The Internal Revenue Service (IRS) has issued out a reminder to low- and moderate-income workers that they may be eligible for a "saver's credit" for their contributions to an IRA or defined contribution savings plan.

Sex Harassment Case Reinstated by Appellate Panel

November 13, 2007 (PLANSPONSOR.com) - A federal appellate court has thrown out a lower court ruling dismissing a sexual harassment case by a male university official against his female supervisor, saying that the employee may not be able to be blamed for seeking police protection from the supervisor's advances.

Final QDIA Regs Create Implementation Questions

November 13, 2007 (PLANSPONSOR.com) - While the Final Regulations on Qualified Default Investment Alternatives (QDIAs) under Participant Directed Individual Account Plans answered many questions posed by commenters after the proposed regulations were issued, more questions are emerging concerning implementation of the rules.

HR Groups Battle WARN Bill Revisions

November 12, 2007 (PLANSPONSOR.com) - A measure passed out of the U.S. House of Representatives would extend to 90 days from the current 60 the advance warning of impending layoffs an employer is required to provide.

DB Investment Suit Cleared for Trial

November 9, 2007 (PLANSPONSOR.com) - A federal judge has cleared the way for a legal battle between a defined benefit plan sponsor and its former investment manager over whether the plan was too heavily invested in certain stocks.