INSIDER

Supreme Court Rules ADEA Does Not Prohibit Reverse Age Discrimination
The U.S. Supreme Court recently ruled that the Age Discrimination in Employment Act (ADEA) does not prohibit employment or benefit practices that favor older workers over younger workers, even when the younger workers fall within the ADEA’s protected class.

Phased Retirement: A Retention Strategy Whose Time Has Come
The concept of retirement is taking on an entirely new meaning. Rather than stopping work altogether, many retirement-age workers today would prefer to simply shift into a lower gear. Some are even beginning new careers.

IRS Proposes Section 411(d)(6) Regulations on Eliminating Optional Forms of Benefits
The IRS has proposed regulations on when a plan sponsor may amend a plan to eliminate or reduce an early retirement benefit, a retirement-type subsidy or an optional form of benefit (Code section 411(d)(6)(B) protected benefits), without having to grandfather the previously existing benefit.

IRS Rules PowerPoint® Presentation Constitutes Participant Notice; Treats Board Resolution as Plan Amendment
In Private Letter Ruling (PLR) 200407021, the IRS ruled that a plan sponsor’s Microsoft PowerPoint® presentation at employee meetings satisfies the written notice requirements of ERISA section 204(h).

IRS Issues Ruling on Plans Charging Expenses to Former Employees Where Employer Pays Current Employees’ Share
In Revenue Ruling 2004-10, the IRS has ruled that, in a defined contribution plan, charging plan administrative expenses to former employees’ accounts but not to current employees’ accounts does not violate the rules concerning participant consent to a distribution.

IRS Provides Guidance, Seeks Comments on Merger & Acquisition Testing Rules
In Rev. Rul. 2004-11, the IRS provides guidance on the grace period for coverage and nondiscrimination testing after a change in the controlled group.