IRS

IRS Proposed Regs on Diversification of Employer Securities in a Defined Contribution Plan

IRS Proposed Regs on Measurement of DB Assets and Liabilities for Funding Purposes

IRS Proposed Regs. On Cash balance and Hybrid Plans

IRS User Fees for Enrolled Actuary

Notice 2008-7, Extension of Transitional Relief for Diversification Requirements for Certain
Defined Contribution Plans

Rev. Ruling 2008-5; Losses from Wash Sale in IRA

Announcement 2008-2 This announcement sets forth the procedures for electing an alternative funding schedule for certain employers, as described in section 402(a)(2) of the Pension
Protection Act of 2006, as amended by section 6615 of the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007. Section 402(a) of PPA permits an eligible plan to elect one of two alternative funding schedules to apply in lieu of the generally applicable minimum funding requirements. An eligible plan is a defined benefit plan (other than a multiemployer plan) that is sponsored by an employer that is a commercial passenger airline or whose principal business is providing catering services to a commercial passenger airline. The two alternative funding schedules are set forth in sections 402(a)(1) and (2) of PPA.

DOL

Proposed Civil Penalties for Failure to Provide Disclosures, such as the QDIA Notice

Proposed Disclosure of Fees

Advisory Opinion 2007-07A; Fiduciaries May Not Use Proxy Power to Further Political or Policy Issues

EBSA Achieves Approximately $1.5 Billion In Total Monetary Results

PBGC

Premium Final Rule:  On December 17, 2007, PBGC published a final rule amending PBGC's premium regulations to implement certain provisions of the Deficit Reduction Act of 2005 and the Pension Protection Act of 2006 that are effective beginning in 2006 or 2007.  The provisions that are implemented by this rule change the flat premium rate, cap the variable-rate premium for plans of certain small employers, and create a new "termination premium" that is payable in connection with certain distress and involuntary plan terminations. (12/17/07)

Benefit Restrictions - Present Value of PBGC Maximum Guarantee:  The Pension Protection Act of 2006 provides that, generally beginning in 2008, single-employer plans that are between 60 and 80 percent funded may not pay lump sums or other accelerated distribution forms with values in excess of: (1) 50 percent of the amount that would be paid absent the restriction or, if smaller (2) the present value of PBGC's maximum guarantee computed under PBGC guidance.  On December 17, 2007, PBGC posted a table showing the present value of PBGC's maximum guarantee for 2008 and issued Technical Update 07-04 providing information on how the table was developed and how it should be used. (12/17/07)

Disclosure of Termination Information Proposed Rule:  On December 5, 2007, PBGC published a proposed rule to implement section 506 of the Pension Protection Act of 2006, which amends sections 4041 and 4042 of ERISA.  These amendments require that a plan administrator disclose information it has submitted to PBGC in connection with a distress termination filing, and that a plan administrator or plan sponsor disclose information it has submitted to PBGC in connection with PBGC-initiated termination.  The new provisions also require PBGC to disclose the administrative record in a PBGC-initiated termination.  The disclosures must be made to an affected party upon request.  Comments on the proposed rule are due February 4, 2008.  (12/05/07)

Disclosure of Termination Information Proposed Rule:  On December 5, 2007, PBGC published a proposed rule to implement section 506 of the Pension Protection Act of 2006, which amends sections 4041 and 4042 of ERISA.  These amendments require that a plan administrator disclose information it has submitted to PBGC in connection with a distress termination filing, and that a plan administrator or plan sponsor disclose information it has submitted to PBGC in connection with PBGC-initiated termination.  The new provisions also require PBGC to disclose the administrative record in a PBGC-initiated termination.  The disclosures must be made to an affected party upon request.  Comments on the proposed rule are due February 4, 2008.  (12/05/07)

Expected Retirement Age Update: On November 30, 2007, PBGC published a final rule amending its valuation regulation by substituting a new table for selecting a retirement rate category.  The new table applies to any plan being terminated either in a distress termination or involuntarily by the PBGC with valuation date falling in 2008.  (11/30/07)

2008 Maximum Guarantee:  On November 30, 2007, PBGC published a final rule amending its benefits payment regulation by updating the maximum guaranteeable monthly benefit table for 2008.  The maximum guaranteeable monthly benefit for 2008 is $4,312.50 (as compared with $4,125 for 2007).  (11/30/07)

2008 Premium Filings:  On November 30, 2007, PBGC published a notice announcing that the per-participant flat-rate premium for plan year 2008 is $33.00 (up from $31.00 for Plan Year 2007) for single-employer plans and $9.00 (up from $8.00 for Plan Year 2007) for multiemployer plans. The premium rates are adjusted for inflation each year based on changes in the national average wage index, as required by the Deficit Reduction Act of 2005 (signed into law on February 8, 2006). These new rates are expected to be updated within PBGC's e-filing application called My Plan Administration Account (My PAA) in January 2008. When My PAA is ready, filers will be able to prepare and submit Estimated Filings for plan year 2008 (for which February 29, 2008 is the earliest filing due date for calendar year plans). Please note that initially, only Estimated Filings will be allowed for plan year 2008 due to the substantial changes that are required as a result of the Pension Protection Act of 2006, particularly with respect to the variable-rate premium. My PAA will be updated for these changes to allow sufficient time to prepare and submit filings due October 15, 2008 (for calendar year plans). (11/30/07)

Transitional Guidance on 4010 and 4043 Reporting Requirements: On November 28, 2007, PBGC issued Technical Update 07-2, providing guidance on the applicability of changes made by the Pension Protection Act of 2006 (PPA 2006) as they relate to PBGC's regulations on Annual Financial and Actuarial Information Reporting (29 CFR part 4010) and Reportable Events and Certain Other Notification Requirements (29 CFR part 4043).  For example, the Technical Update states that PBGC interprets the PPA 2006 amendments to ERISA section 4010 as applying to information years beginning after 2007, which means that the $50 million gateway test is still used to determine whether a 4010 filing is required for information years beginning in 2007.  In addition, the Technical Update provides guidance on how to determine vested benefits and UVBs for purposes of reporting waiver requirements and the advance notice filing threshold test under part 4043 for event years beginning in 2008.  The PBGC revised this Technical Update on December 7, 2007 (corrected December 15, 2007).  (12/15/07)

Notice of Revisions to 2008 Form 5500: On November 16, 2007, the Department of Labor, the Department of Treasury, and PBGC published a Notice of Adoption of Revisions to Annual Return/Reports in the Federal Register, at 72 FR 221.  The Notice contains revisions required by the Pension Protection Act of 2006 to the Form 5500 Annual Return/Report forms that are filed for employee benefit plans under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code.  Some of the forms revisions will apply on a transitional basis for the 2008 reporting year.  All of the forms revisions, including a new Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan, will be fully implemented for the 2009 reporting year as part of the switch under the ERISA Filing Acceptance System (EFAST) to a wholly electronic filing system (EFAST2).  (11/16/07)