DOL Finalizes Qualified Default Investment Alternative Regulation
The Pension Protection Act of 2006 (PPA) required the U.S. Department of Labor (DOL) to provide fiduciary protection for default investments in participatory defined contribution plans. The DOL proposed default investment guidance in 2006 and now has finalized the qualified default investment alternative (QDIA) regulation. |
IRS Proposes Regulations on Automatic Contribution Arrangements
The IRS has issued proposed regulations on automatic contribution arrangements under the Pension Protection Act of 2006 (PPA). The proposed regulations address the special 401(k) and 401(m) nondiscrimination test safe harbor for qualified automatic contribution arrangements (QACAs). Congress Delays Final Action on Tax and Retirement Benefits for Military Reservists
The House and Senate approved separate versions of legislation to grant tax relief to members of the U.S. armed forces. The Senate’s Defenders of Freedom Tax Relief Act of 2007 and the House’s Heroes Earnings Assistance and Relief Tax Act have similar or identical provisions addressing retirement plan benefits, differential pay and other tax issues for workers who are called to active military duty. Recent and Prospective Developments in Retirement Programs in the United Kingdom
Like in the United States – and for many of the same reasons – there has been a shift in the United Kingdom in the provision of retirement benefits to workers by private-sector employers from defined benefit (DB) to defined contribution (DC) plans. The change has unfolded differently, however, in the two countries. SAR Exemption for DB Plans
Under the Pension Protection Act of 2006, defined benefit plans will no longer be required to furnish a summary annual report (SAR) to participants and beneficiaries. Defined benefit plans will file their first annual funding notice in 2009 for the 2008 plan year, which will replace the SAR.
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