DOL Releases Guidance on PTE for Investment Advice
In Field Assistance Bulletin (FAB) 2007-01, the U.S. Department of Labor provides guidance on the statutory prohibited transaction exemption (PTE) for investment advice under the Pension Protection Act of 2006 (PPA). The guidance primarily affects defined contribution plan sponsors and those who provide investment advice to defined contribution plan participants. |
Looking Into the FASB’s Crystal Ball: What’s on the Horizon for Phase Two of Postretirement Benefit Accounting Reform?
On September 29, 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) 158, which concluded the first phase of the FASB’s accounting reforms for pensions and other postretirement benefits. Default Investment Options in Defined Contribution Plans: A Simple Comparison
Employers increasingly provide retirement benefits to their employees through defined contribution (DC) plans. To build up enough wealth for a secure retirement, workers must save regularly and invest wisely. Automatic enrollment and effective default investments can help with both. IRS Releases New Mortality Tables for 2007 Plan Years
Last month, the IRS published final regulations that provide new mortality tables for 2007 plan years for single-employer defined benefit plans. The regulations change the assumption used for non-disabled participant mortality when determining a pension plan’s current liability. Overall, the new tables are expected to increase plans’ current liability for 2007 and funding targets for 2008 and later. IRS Accepting Cycle B Applications for Determination Letters
On February 1, 2007, the IRS began accepting Cycle B applications for determination letters that consider the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and other changes to tax law. Cycle B closes on January 31, 2008. All plan sponsors that want determination letter reliance on a new or amended plan’s tax-qualified status must file a determination letter application within the determination letter cycle assigned to the plan. President and Others Propose Big Changes for Health Care
President Bush has proposed a new budget for fiscal year 2008. Some of the administration’s proposals are continuations of past initiatives, such as expanding health savings accounts (HSAs), while others represent new directions, such as eliminating the income tax exclusion for employer-provided health coverage.
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