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Table
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Current Developments
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Errata Page
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TRI Pension Services
The ERISA Outline Book
Current Developments By Chapter
In this section we reference significant current developments, organized by chapter, that affect sections of that chapter in the 2008 Edition of the ERISA Outline Book. For other new developments, visit the What's New page.
In parentheses next to each item in the list below, we note the date we posted the item as well. Subscribers to eRISA Update, one of our quarterly newsletter, contains summaries of the new developments cited. For ordering information, Click here and follow the instructions to print out an order form.
Chapter 1
- Remedial amendment period definition. Announcement 2008-23 sets the two-year EGTRRA restatement period for these plans to run from May 1, 2008, through April 30, 2010. During that period of time, all plans that qualify for the 6-year fixed cycle for pre-approved defined contribution plans (as described in Rev. Proc. 2007-44) must be restated with a newly-approved plan. An adopting employer that completes its restatement by the April 30, 2010, deadline is treated as having adopted the plan within the applicable 6-year remedial amendment cycle. To obtain reliance with respect to this remedial amendment cycle, such plans also need to be submitted to the IRS for a determination letter during this period unless the plan is entitled to rely on the governing opinion letter or advisory letter. Determination letter applications may be submitted starting on May 1, 2008.
Chapter 2
Chapter 3A
Chapter 3B
- Section VIII, Part B.See Notice 2008-21 regarding the general delay of the effective date of the funding regulations to 2009, with a reasoanble interpretation standard for 2008.
- Section VIII, Part B.4.c.1) Until further guidance is issued, the rules of Rev. Rul. 96-7, including the mortality tables set forth in that ruling and the rules regarding the determination of whether a benefit is payable on account of disability, apply under IRC §§430(h)(3)(D) (pertaining to disability mortality tables for determining the funding requirements for single-employer defined benefit plans) and 431(c)(6)(D)(v) (pertaining to disability mortality tables for determining the funding requirements for multiemployer defined benefit plans). See Notice 2008-29.
- Section VIII, Part K.In Notice 2008-21, the IRS provides temporary transition relief for plans with end-of-year valuations. This notice also confirms that the effective date of final regulations is postpone to January 1, 2009, with a reasonable interpretation standard applying for 2008 plan years. Also see Notice 2008-21 regarding the general delay of the effective date of the funding regulations to 2009, with a reasoanble interpretation standard for 2008.
- Section X, Part D. Proposed regulations clarify the 204(h) notice requirements for retroactive amendments, treat certain notice requirements in other tax code and ERISA sections as satisfying 204(h) notice. For retroactive amendments, the timing of the 204(h) notice is generally measured from the date the plan first started complying in operation with such amendment. [Citation: Prop. Treas. Reg. §§1.411(d)-3 and 54.4980F-1, Q&As-1, -8, -9, -10, -11 and -18, 73 F.R. 15101 (March 21, 2008)]
Chapter 4
Chapter 5
Chapter 6
- Section III, Part B. Notice 2008-30 provides interim guidance on the PPA 2006 amendment that requires a plan subject to the qualified joint and survivor annuity (QJSA) requirements under IRC §401(a)(11) to provide a participant who waives the QJSA an opportunity to elect a qualified optional survivor annuity (QOSA).
- Section III, Part C.2.e. Notice 2008-30 addresses the PPA 2006 amendment to the applicable interest rate and applicable mortality table under IRC §417(e)(3) by section 302 of the PPA 2006, and the interaction of that change with the QJSA rules. A plan may be amended to provide that the amount payable under an optional form of benefit that is subject to IRC §417(e)(3) is calculated as the more favorable of: (1) the amount calculated using the pre-PPA applicable mortality table and applicable interest rate, or (2) the amount calculated using the post-PPA applicable mortality table and applicable interest rate. If a plan takes this approach it is not treated as violating Treas. Reg. §1.401(a)-20, Q&A-16, but only until the end of the amendment period prescribed by section 1107(b)(2)(A) of the PPA 2006 (generally the last day of the 2009 plan year). Anti-cutback issues are also discussed.
Chapter 7
- Section IV, Part C.1.a.2). Notice 2008-30 addresses the amendment to IRC §408A(e) by section 824 of the PPA 2006, which modifies the definition of a "qualified rollover contribution" under IRC §408A to include an eligible rollover distribution from a qualified plan, section 403(b) plan, or governmental 457(b) plan.
Chapter 8
Chapter 9
Chapter 10
Chapter 11
- Section XI, Part D.1.a.2)b) Notice 2008-30 addresses the timing of plan amendments to reflect the requirement in Treas. Reg. §1.402(g)-1(e)(5) that corrective distributions of excess deferrals include gap period earnings (i.e., earnings for the period from the end of the calendar year for which the excess deferral was made and the date of distribution).
Chapter 12
Chapter 13A
- Section III, Part C.2.c. and Part C.2.g. Proposed regulations regarding the calculation of the VRP and the revision of the premium payment due dates have been finalized with only minor changes. See PBGC Reg §§4006.2, 4006.4, 4006.5, 4007.3, 4007.7, 4007.8, 4007.10, 4007.11, 73 F.R. 15065 (March 21, 2008). Also note in the discussion of premium payment forms for post-2007 plan years (Part C.2.g.6)) that the PBGC is discontinuing Form 1 and Form 1-EZ and replacing those forms with a comprehensive premium payment form that is available at the PBGC website. This comprehensive form applies to premium payments for the 2008 plan year and thereafter. The PBGC is NOT discontinuing Form 1-ES for estimated payments by large plans of the flat-rate premium.
- Section III, Part C.4. The PBGC has proposed modifications to regulations under ERISA §4010 to implement PPA 2006 changes, such as the 80% Funded Gateway Test. ERISA §4010 reporting would be waived for an Information Year if, for the plan years ending in such Information Year, the aggregate 4010 funding shortfall for all plans (including exempt plans) maintained by the members of the contributing sponsor's controlled group does not exceed $15 million. [Citation: Prop. PBGC Reg. §§4010.1-4010.9, 4010.11-4010.13, 73 F.R. 9243 (February 20, 2008)]
Chapter 13B
- Section II, Part B.2.Proposed regulations would add a safe harbor to the deposit rule under §2510.3-102 under which participant contributions would be considered to have been deposited timely if the deposit to the plan is made within 7 business days - see Prop. DOL Reg. §2510.3-102(a)(2), 73 F.R. 11072 (February 29, 2008).
- Section II, Part C.4.e.3). In Field Assistance Bulletin 2008-01 (February 1, 2008), the DOL outlines how to determine which fiduciary is responsible for the collection of delinquent employer and employee contributions.
- Section III, Part 4.b. The Supreme Court has held in LaRue v. DeWolff, Boberg & Associates, 128 S.Ct. 1020 (2008) that although ERISA §502(a)(2) does not provide a remedy for individual injuries distinct from plan injuries (e.g., consequential damages), it does authorize recovery for fiduciary breaches that impair the value of plan assets in a participant's individual account.
Chapter 14
Chapter 15
Seminars
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