New Congress Considers Executive Compensation, Medicare Proposals
Congress’ new Democratic majority wrapped up its first 100 hours of legislation – an agenda that included bills to change executive compensation taxes and require the government to negotiate prices for Medicare-covered drugs. Both proposals could have a significant impact on employers and employees, but both have a long way to go before they can become law. President Proposes Tax Changes in Effort to Broaden Health Coverage
In his State of the Union address on Jan. 23, 2007, President Bush outlined plans to change the way health care benefits are taxed in an effort to encourage more Americans to purchase health care insurance. Paid Sick Leave to Be Required in San Francisco
Employers will be required to provide paid sick leave for all employees within San Francisco city and county under a new law approved by San Francisco voters as Proposition F on Nov. 7, 2006. IRS Releases Transitional Guidance for Hybrid Plans
The IRS has released guidance explaining how to apply the Pension Protection Act (PPA) to cash balance plans, pension equity plans (PEPs) and other hybrid defined benefit plans. The PPA established — prospectively — that hybrid plans are not inherently age-discriminatory and imposed new rules on hybrid plan conversions, benefit accruals and benefit payouts. This guidance is the first interpretation of those new restrictions and provisions by government regulators. IRS Provides Guidance on Reporting and Withholding Under Section 409A
In Notice 2006-100, the IRS extends the waiver of employers’ and workers’ reporting requirements for section 409A-compliant deferrals. This means that employers and other payers need not report these annual deferrals on Form W-2 or Form 1009-MISC for 2005 or 2006. DOL Requests Comments on FMLA
The U.S. Department of Labor (DOL) is seeking information and comments from the public on the Family and Medical Leave Act (FMLA) and its implementing regulations. PBGC Introduces New Enforcement Initiative
The Pension Benefit Guaranty Corporation (PBGC) recently announced its intention to audit all terminating defined benefit plans that distribute cash or purchase irrevocable annuity commitments without first having filed a standard termination notice (Form 500). Important HSA Changes Signed Into Law
As health savings accounts (HSAs) and the high-deductible health plans (HDHPs) that go with them are being more widely used, employers and employees have run into some obstacles. Over recent months, lawmakers have been discussing legislation to simplify and improve these plans. During the 11th hour of the 2006 legislative session, Congress passed the Tax Relief and Health Care Act (H.R.6111), which President Bush signed into law December 20. 109th Congress Wraps Up — Important Changes Ahead for 110th
By the time it finished up in early December, the 109th Congress had approved several important benefits-related bills, including the Pension Protection Act of 2006 (PPA) and the Tax Relief and Health Care Act, which makes important changes to health savings accounts (HSAs). Online Year 2007 ERISA Reporting Calendars
The 2007 ERISA Reporting Calendars are now available online! Plan administrators of single and multiemployer pension and welfare benefit plans can visit our web site for concise information on filing annual and special reports with the DOL, IRS and PBGC. Diversification Requirements for DC Plans Holding Publicly Traded Employer Securities
The Pension Protection Act of 2006 established diversification rights for participants and beneficiaries who hold publicly traded employer securities in their defined contribution plans.
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