TRI Pension Services/ What's New/Current Developments

The following list tracks important guidance that has been released since January 1, 2008. These items are summarized in detail, with appropriate commentary, in our quarterly newsletter, eRISA Update. For ordering information, Click here and follow the instructions to print out an order form.

Cross-references to sections of The ERISA Outline Book that are affected by significant current developments are available,organized by chapter. For ordering information for The ERISA Outline Book click here.

• Click here for current developments issued in 2004
• Click here for current developments issued in 2005
• Click here for current developments issued in 2006
• Click here for current developments issued in 2007

Legislative Developments

• No entries.

Treasury Regulations

• Proposed regulations issued under IRC §401(a)(35), effective for post-2008 plan years [Citation: Prop. Treas. Reg. §1.401(a)(35)-1, 73 F.R. 421 (January 3, 2008)]

IRS Guidance

• Transition rule in Notice 2006-107 (pertaining to the diversification requirements under IRC §401(a)(35)) continues until regulations become effective [Citation: Notice 2008-7, 2008-3 I.R.B.]
• Loss disallowed, pursuant to IRC §1091, from sale of stock where substantially identical stock is purchased by IRA or Roth IRA [Citation: Rev. Rul. 2008-5, 2008-3 I.R.B.]
• Expanded tax return preparer penalty can be triggered with respect to preparers of certain employee benefits related forms [Citation: Notice 2008-13, 2008-3 I.R.B.]
• IRS explains the application of the minimum accrual rules to a conversion from a traditional benefit formula to a lump-sum based benefit formula [Citation: Rev. Rul. 2008-7, 2008-7 I.R.B.]
• Uniform delay of IRC §§430 and 436 regulatory effective dates to 2009; guidance for plans with a valuation date on the last day of the plan year [Citation: Notice 2008-21, 2008-7 I.R.B.]
• Guidance on PPA amendment to allow non-Roth funds in eligible retirement plans to be rolled over to Roth IRAs [Citation: Notice 2008-30, Q&A-1 through Q&A-7, 2008-12 I.R.B.]
• Timing of amendments to reflect the requirement to distribute gap period earnings [Citation: Notice 2008-30, Q&A-19 through Q&A-21, 2008-12 I.R.B.]
• Guidance on qualified optional survivor annuity (QOSA) requirements [Citation: Notice 2008-30, Q&A-8 through Q&A-15, 2008-12 I.R.B.]
• Interaction between new PPA assumptions under IRC §417(e) and the QJSA rules [Citation: Notice 2008-30, Q&A-16 through Q&A-18, 2008-12 I.R.B.]
• Mortality table for disabled participants: continued reliance on Rev. Rul. 96-7 [Citation: Notice 2008-29, 2008-12 I.R.B.]

IRS Private Letter Rulings

• Use of 401(k) plan assets to pay for long-term care insurance results in distribution, not only for tax purposes but also for qualification purposes [Citation: PLR 200806013]

DOL and PBGC Guidance

• Safe harbor deadline (7 business days) for depositing participant contributions to plans with fewer than 100 participants [Citation: Prop. DOL Reg. §2510.3-102(a) and (f), 73 F.R. 11072 (February 29, 2008)]
• PBGC proposed modifications to regulations under ERISA §4010 to implement PPA 2006 changes [Citation: Prop. PBGC Reg. §§4010.1-4010.9, 4010.11-4010.13, 73 F.R. 9243 (February 20, 2008)]

EBSA Advisory Opinions and Field Assistance Bulletins

• DOL outlines how to determine which fiduciary is responsibe for the collection of delinquent employer and employee contributions [Citation: Field Assistance Bulletin (FAB) 20008-01 (February 1, 2008)]
• DOL outlines how to determine which fiduciary is responsible for the collection of delinquent employer and employee contributions [Citation: Field Assistance Bulletin (FAB) 2008-01 (February 1, 2008)]
• ERISA preempts state law that would interfere with operation of a default election feature in a group health plan that triggers payroll deductions [Citation: Advisory Opinion 2008-02A (February 8, 2008)]

ERISA Litigation

• Group insurance plan could not be amended retroactively under the doctrine of equitable reformation to fix a scrivener's error that would eliminate beneficiary's right to death benefit provided under the policy's original terms [Citation: Blackshear v. Reliance Standard Life Insurance Co., No. 06-2126 (4th Cir. December 7, 2007)]
• Participant may recover losses incurred by his account due to fiduciary's failure to implement the investment strategy he had selected for the account [Citation: LaRue v. DeWolff, Boberg & Associates, 128 S.Ct. 1020 (2008)]

Miscellaneous Guidance

• No entries

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