Treasury Issues Final Regulations on 409A NQDC Rules
The U.S. Department of Treasury and the IRS recently released final regulations addressing nonqualified deferred compensation (NQDC) plans under section 409A. The regulations provide voluminous guidance — 397 pages worth — on a variety of qualification and other issues pertaining to NQDC plans. Executive Compensation Provisions Dropped From Minimum Wage Package
Provisions to cap annual deferrals under nonqualified deferred compensation (NQDC) arrangements and expand the number of workers covered by the $1 million cap on executive compensation were dropped from the minimum wage package. Looking Into the FASB’s Crystal Ball: What’s Ahead for Balance Sheet Consolidation?
The Financial Accounting Standards Board (FASB) concluded the first phase of its two-part project on postretirement benefit accounting reform last year with the issuance of Statement of Financial Accounting Standards (SFAS) 158. Although the FASB is pleased with the first phase of its accounting reforms, which moved market-based measures of funded status from the footnotes of financial statements to the balance sheet, the board left many of the biggest issues for Phase Two. Improvement in Social Security Disability Claims Process May Affect Cash Flow in Employers’ Disability Plans
For the first time in 50 years, the Social Security Administration (SSA) is revamping its disability determination process. The final rule, which is intended to shorten decision times and pay out benefits faster, took effect August 1, 2006, in the New England region. DOL Issues Request for Information on Fee Disclosure in 401(k) Plans
The U.S. Department of Labor (DOL) has issued a Request for Information (RFI) about fee disclosure for 401(k)-type plans. Watson Wyatt Comments on Hybrid Plans and Future Guidance
Early this year, the IRS released guidance on the Pension Protection Act (PPA) provisions concerning hybrid defined benefit plans and asked the public to comment on the proposed guidance along with several other issues concerning hybrid plans. IRS Issues Final Section 415 Regulations
The IRS recently issued final regulations under section 415. These are the first comprehensive revision of the section 415 regulations since 1981, and the new rules incorporate all the statutory and other changes released during the 26-year interim. House Approves “Say for Pay” Legislation
On April 20, the House approved the Shareholder Vote on Executive Compensation Act (H.R.1257) by a vote of 269-134. The “say for pay” legislation would give shareholders an annual, nonbinding vote on the executive compensation packages disclosed in corporate proxy statements. It would also give them a nonbinding advisory vote on golden parachute packages in some circumstances involving negotiations to buy or sell the company. Genetic Nondiscrimination Legislation Moves Forward
In a 420-3 vote on April 25, the House approved the Genetic Information Nondiscrimination Act (H.R.493), which would prohibit health insurers and employers from discriminating against employees based on their (or their family members’) genetic information. Senate Blocks Medicare Part D Drug Negotiation
The Senate’s attempt to allow the secretary of Health and Human Services (HHS) to negotiate the price of prescription drugs under the Medicare Part D program was blocked on April 18 when the legislation failed to gain the 60 votes it needed for final debate and passage. Department of Energy Seeks Comments on Policy Toward Contractors’ Pensions
The Department of Energy (DOE) is seeking recommendations on the best way to address rising costs and liabilities in its contractors’ pension and health plans. The DOE first announced a controversial policy to stop reimbursing contractors for defined benefit (DB) plan expenses for new employees in April 2006.
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