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Employee Benefit Plan Newsletter – Summer 2017

In This Issue:

EMPLOYEE BENEFIT PLANS ADVISORY: AICPA ASB Proposes Standard on Auditor Reporting on ERISA Financial Statements

In an effort to improve the communicative value and relevance of the auditor’s report, the AICPA’s Auditing Standards Board (ASB) has issued the exposure draft, Proposed Statement on Auditing Standards (SAS), Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA (Exposure Draft). Read More

Significant Proposed Form 5500 Changes

In July 2016, the government agencies that administer the Form 5500 Annual Return/Report of Employee Benefit Plan (Form 5500) announced proposed changes to the Form 5500 which are expected to significantly impact the degree of plan details reported as well as the amount of time and effort to properly complete the form. Read More

New Reporting Guidance

Plan sponsors should be aware of the guidance in this article and how it impacts reporting and disclosures for EBPs. Read More

Increases in Certain ERISA Civil Penalties

The DOL published in the Federal Register on June 30, 2016, adjustments to civil monetary penalties that impacts items under Employee Retirement Income Security Act (ERISA) reporting requirements. Read More

Updates to Retirement Plan Correction Procedures

The Internal Revenue Service (IRS) released Revenue Procedure (Rev. Proc.) 2016-51 updates to the Employee Plans Compliance Resolution System (EPCRS) in September 2016 replacing Rev. Proc. 2013-12. While the Rev. Proc. makes small, clarifying updates, it does not significantly change EPCRS’s substantive provisions. Read More

Use of Forfeitures in Safe Harbor 401(k) and 403(b) Plans

In January 2017, the IRS issued a proposed regulation under which forfeitures may now be utilized to fund Qualified Non-Elective Contributions (QNECs) and Qualified Matching Contributions (QMACs), including ADP safe harbor matching and non-elective contributions (fully vested sources) at the time the amounts are funded. Read More

Substantiation of Hardship Distributions

The IRS recently issued two memorandums to its employee plan examiners indicating it is permissible for 401(k) and 403(b) plan sponsors and their service providers to rely on participants’ written summaries describing their financial hardships when processing hardship withdrawals from plans that apply safe harbor event rules. Read More

Is Your Health Plan Ready for a HIPAA Audit?

The U.S. Department of Health & Human Services (HHS) has begun the next phase of audits in conjunction with its review of policies and procedures implemented by covered entities (and those entities’ business associates) to meet the Health Insurance Portability and Accountability Act (HIPAA) Privacy, Security and Breach Notification rules. Read More

Changes to the Determination Letter Program

Effective January 1, 2017, plan amendment requirements as well as the determination letter program for individually designed plans will undergo some significant changes. The Internal Revenue Service (IRS) provided much-anticipated guidance on these changes with the release of Revenue Procedure (Rev. Proc.) 2016-37 in June 2016. Read More

On the Horizon: Expanded PBGC Missing Participant Program

Sponsors of terminated or potentially terminating defined contribution and defined benefit plans will be interested to know that the Pension Benefit Guaranty Corporation (PBGC) is looking to expand its Missing Participant Program to cover terminated 401(k) and other defined contribution plans as well as certain defined benefit plans not currently covered by the PBGC program. PBGC anticipates having the expanded program available in 2018 for plans that terminate after 2017. Read More