Plan sponsors should check their calendars and be aware that the deadline for making corrective distributions to HCEs (without an excise tax penalty) for a failed ADP or ACP test is quickly approaching. – General deadline is within 2 ½ months after end of plan year (i.e., March 15th for calendar year plans). – The […]Read More… from Watch Out for Approaching ADP/ACP Correction Deadlines
In Announcement 2011-21, the IRS released details regarding filing requirements for the new Form 8955-SSA, which will be used to report participants with deferred vested benefits from an employer-sponsored retirement plan. For calendar year plans, the 2009 8955-SSA due date (without extension) will generally be August 1, 2011. As mentioned in our earlier post on […]Read More… from IRS Unveils Details of New Form 8955-SSA
In our last ERRP post, we noted that $1 billion of the original $5 billion in Early Retiree Reinsurance Program (ERRP) funds has been paid out. Now, according to an article this week in Business Insurance, the US Dept of Health and Human Services (HHS) estimates that $3.6 billion will have been paid out in […]Read More… from ERRP update: it’s time to make your move
The proposed 2012 federal budget contains an interesting provision which could dramatically change how PBGC premiums are determined. Here are the main aspects of the proposal: – Gives the PBGC authority to set and adjust premium rates as it sees fit. Currently the PBGC does not have this power, so the change would give the […]Read More… from Proposed Changes to PBGC Premiums
The DOL recently announced an extension of the deadline for service providers to comply with Section 408(b)(2) regulations. These rules govern the disclosure of fees charged to qualified retirement plans (e.g., 401(k) and defined benefit pension plans). Disclosures were originally required by July 16, 2011, which has now been extended to January 1, 2012. The […]Read More… from Extension of Retirement Plan Fee Disclosure Deadline
As public plan sponsors complete their second (or third) actuarial valuation of GASB 45 liabilities, they may be surprised at the potential volatility of their Actuarial Accrued Liability (AAL). There are various factors that can cause large AAL changes, including adjustments to the plan provisions or switching health insurers. This post focuses on a less […]Read More… from Understanding the Leveraging Effect of GASB 45 OPEB Liabilities
billion of the original $5 billion has now been paid out under the Early Retiree Reinsurance Program (ERRP), according to an article this month in Business Insurance. We’ve been watching the ERRP since its inception (posts 1, 2, 3, 4), and didn’t think the $5 billion allocation would last long. A July 2010 EBRI article […]Read More… from ERRP funds are going fast, but employers still have time to act
Over the past couple of weeks we’ve been previewing some issues that pension plan sponsors may encounter during 2011 (e.g., increases in Annual Funding Notice liabilities and PBGC variable rate premium increases). This post highlights several items that plan sponsors should be aware of as they gear up for their 2011 pension funding valuations. These […]Read More… from 2011 Could Have Pension Contribution Surprises
As we mentioned in our blog post yesterday, the segment interest rates used for PBGC purposes are historically low right now. The previous post provided details of how this could affect the liabilities reported in the 2010 Annual Funding Notice to participants. This post highlights the impact on plan sponsors’ PBGC variable rate premiums (VRPs) […]Read More… from Pension Plans May Face Higher 2011 PBGC Variable Premiums Due to Low Interest Rates
For calendar year pension plans, the Annual Funding Notice (AFN) to participants is due no later than April 30, 2011. One potential issue with this year’s notice is the impact of low interest rates on the liabilities disclosed in the document. There are two interest rates that affect liabilities in the AFN: – PBGC segment […]Read More… from 2010 Annual Funding Notice Liabilities Could Surprise Plan Sponsors and Participants
