Reporting

[Guidance Overview] HHS Guidance on Annual Dollar Limit Waivers for Limited Benefit Health Plans or'Mini Med'Plans
Excerpt:"The waiver process is available for group health plans and health insurance issuers if the plan or coverage was offered prior to September 23, 2010 for the plan or policy year beginning between September 23, 2010 and September 23, 2011."(Hewitt Associates)

[Guidance Overview] IRS Draft of Form for Calculating New Health Care Tax Credit
Excerpt:"The Internal Revenue Service has released a draft version of the form that small businesses and tax-exempt organizations will use to calculate the small business health care tax credit when they file income tax returns next year. The IRS has posted a draft of Form 8941 on its Web site [at http://www.irs.gov/pub/irs-dft/f8941--dft.pdf]."(PLANSPONSOR.com)

[Guidance Overview] DOL's Interim Final Fee Disclosure Regulations (PDF)
6 pages. (Buck Consultants)

[Guidance Overview] Service Provider Fee Disclosure Regulations: Initial Disclosures
Excerpt:"The [covered service provider] must make compensation disclosures relating to four different categories of compensation: (1) direct compensation; (2) indirect compensation; (3) compensation paid among related parties; and (4) compensation for contract termination."(SunGard Relius)

Comments Endorse Fee Disclosure Flexibility, Additional Compliance Time
Excerpt:"A number of the commenters submitting to [EBSA] touched on the issue of whether those covered by the rule being required to comply on an EBSA-prescribed form would prove overly costly or too difficult to develop within the rule's time frame."(PLANSPONSOR.com)

[Opinion] Statement on Behalf of Profit Sharing/401k Council of America before Working Group on Employee Benefit Plan Auditing and Financial Financial Reporting Models
2 pages. (Profit Sharing / 401k Council of America)

[Guidance Overview] SEC's Proposed Revisions to Mutual Fund Distribution Fees and Disclosure (PDF)
7 pages. Excerpt:"The Proposal has widespread implications not only for mutual funds and their boards of directors and investment advisers, but also for broker-dealers and other financial intermediaries that sell fund shares or service fund shareholder accounts."(Morgan, Lewis&Bockius LLP)

[Guidance Overview] Fee Disclosure Regulation: DOL Provides Leverage for Plan Sponsors
Excerpt:"The Regulation thus shifts the balance of power between the plan fiduciary who is charged with understanding fees that its plans will pay and the service providers that generate those fees. Although a plan fiduciary retains responsibility if it uses plan assets to pay unreasonable fees, the Regulation enhances the fiduciary's ability to obtain the information it needs to determine reasonableness."(Jones Day)

HHS Announces Approved ERRP Applicants; New Resources Available for Employers (PDF)
2 pages. Excerpt:"Approximately 2,000 employers, state and local governments, educational institutions, non-profits, and unions have been accepted into the [Early Retiree Reinsurance Program] and will be able to receive reimbursements for early retiree claims this fall."(Hewitt Associates)

[Guidance Overview] IRS Guidance for Employers Sponsoring Pre-Approved DC Plans That Missed EGTRRA Plan Document Deadlines
Excerpt:"The IRS explained that employers that adopt a restated plan document after April 30, 2010 may submit an application under the Voluntary Correction Program . . ., a component of the Employee Plans Compliance Resolution System . . . ."(Wolters Kluwer)

NAIC Approves Form for Medical Loss Ratio Reporting
Excerpt:"The National Association of Insurance Commissioners (NAIC) Executive Plenary Committee has approved final implementation of a medical loss ratio (MLR)'blanks'to implement Public Health Service Act 2718 as added by the Patient Protection and Affordable Care Act."(Wolters Kluwer)

State Pension Fund Faces Shortfall, Candidate for State Comptroller Says
Excerpt:"When the state takes its snapshot of the fund, he says, it makes several mistakes, including two big ones. First, it counts money that is not in the fund -- hoped-for investment gains that may or may not appear and future contributions from workers and taxpayers. Second, it does not take into account that the state pensions are worth more than other such promised money because they come with a constitutional guarantee."(The New York Times; free registration required)

[Opinion] Corporate Lawyers Warn of'Logistical Nightmare'Requirement That Companies Disclose Ratio Between CEO Pay Package and That of Typical Employee
Excerpt:"The lawyers say that the ratio would be unfairly complex to calculate and could encourage false comparisons. But the real problem is that C.E.O.'s and corporate boards would have to justify -- to shareholders, employees and the public -- what are sure to be some very large gaps between pay at the top and pay for everyone else.'(The New York Times; free registration required)

SEC's Cease-and-Desist Order Against State of New Jersey Relating to Disclosure Regarding Pension Plan Obligations
Excerpt:"This alert focuses on lessons and concerns for state and municipal issuers arising from the Order."(Nixon Peabody LLP)

[Guidance Overview] GASB's Proposed Changes to Pension Accounting and Financial Reporting by Employers (PDF)
Pages 1, 3 of 4 pages. (National Council on Teacher Retirement)

[Guidance Overview] New Form 5500 FAQs Address Permitted Special Characters and Submission of Schedule H Attachments
Excerpt:"The DOL has added three new questions to its FAQs on EFAST2, the all-electronic filing system required for 2009 plan year filings (due in 2010 for most plans). . . . The two FAQs relevant to welfare and 401(k) plans address permitted special characters and the handling of combined attachment files for Schedule H (large plan financial information)."(Employee Benefits Institute of America)

[Guidance Overview] Overview for Plan Sponsors and Fiduciaries of New Requirements for Service Provider Arrangements
Excerpt:"The regulations impose information disclosure requirements on providers of certain types of services to certain types of ERISA plans. The regulations also explain what are reasonable termination provisions for services contracts."(McGuireWoods LLP)

IRS Handout on Abusive Tax Avoidance Transactions and Emerging Issues Presentation (PDF)
17 pages. Excerpt:"The [August 27, 2010 phone] Forum will focus on potential abusive schemes and new emerging issues including insurance funded plans, schemes involving defined benefit pension plans, S Corporation ESOP abuses, ROBS compliance issues, reversion and distribution schemes, management company promotions, abuses involving union plans and other issues of concern. IRS EP will also discuss strategies to proactively detect and deter abuse, including the use of Promoter Investigations."(U.S. Internal Revenue Service)

[Opinion] Council Comments Regarding Interim Final Regulations on ERISA Section 408(b)(2) Fee Disclosure Requirements (PDF)
13 pages. (American Benefits Council)

[Guidance Overview] Service Provider Fee Disclosure Regulations: Covered Plans and Service Providers
Excerpt:"What service providers are covered by the regulations? A'covered service provider'is a service provider that: (1) enters into a contract or arrangement with a covered plan; (2) reasonably expects to receive $1,000 or more in direct or indirect compensation; and (3) provides services to the plan in one of the categories described in the regulations."(SunGard Relius)

Dodd-Frank Meets ERISA: The Impact of Wall Street Reform on Plan Investments
Excerpt:"Paraphrasing the words of the President -- for all those employee benefit plan fiduciaries who are wondering what Wall Street reform means for you, here's what you can expect. . . . Nevertheless, there are a few steps plan fiduciaries should consider taking now, and some things to keep in mind for the future. Please view the linked ['Pension&Benefits Reporter'] article for further discussion."(Groom Law Group)

[Official Guidance] Text of the IRS Employee Plans News, August 20, 2010 Edition (PDF)
4 pages. This edition covers two issues: 1). Post April 30, 2010, Issues Impacting Adopting Employers Who Use IRS Pre-Approved Plan Documents: Information for employers who failed to adopt an approved EGTRRA restated plan document (with links to the Voluntary Correction Program Submission Kit to resolve the failure) or failed to submit a determination letter application for their EGTRRA restated plan by April 30, 2010. 2). Tax Return Preparers: IRS announces new tax return preparer application system and user fee, and releases proposed regulations to amend Circular 230 rules."(U.S. Internal Revenue Service)

Comment Period Extended on FASB Proposal Affecting Multiemployer Plan Withdrawal Liability Disclosure
Excerpt:"For employers contributing to multiemployer pension plans, the proposal would require disclosure of potential liability on withdrawing from such plans ? even if withdrawing is only a remote possibility ? if that liability would severely impact the employer."(Mercer LLC)

DOL Answers More EFAST2 Questions for Form 5500 Filers
Excerpt:"DOL explains how filers can meet the requirement to submit separate attachments for actuarial information when the plan's actuary sends a single electronic file. Similar procedures apply if the accountant sends a single file combining the auditor's report with other financial information."(Mercer LLC)

[Guidance Overview] EBSA Updates EFAST2 FAQs
Excerpt:"Additionally, Question 11 has been updated to clarify the definition of'Filing Signer'and Question 29 has been updated to address a potential issue with'optimizing'PDF files. These updated FAQs may be found on the Department of Labor's Web site, at www.dol.gov/ebsa."(Deloitte via BenefitsLink.com)

[Guidance Overview] New Regulations on Service Provider Fee Disclosure Obligations
Excerpt:"Because the Fee Disclosure Regulations contain a number of significant changes from the proposed regulations, the DOL published them as interim final regulations in order to permit additional comments. Interested persons can comment to the DOL until August 30, 2010."(McDermott Will&Emery)

[Official Guidance] Special Voluntary Correction Program Kit for Employers Who Did Not Amend Their Plan on Time (PDF)
18 pages. The kit is for plan sponsors who missed the April 30, 2010, EGTRRA restatement deadline. (U.S. Internal Revenue Service)

[Opinion] Truth in Pensions: Just How Big a Hole Is New Jersey In?
Excerpt:"The action was historic: New Jersey is the first state targeted by the SEC for securities fraud. But with pension funds crumbling everywhere, other states probably will join us in shame. But from this day forward, cross our hearts and hope to die, New Jersey has agreed to tell the truth about its grossly and dangerously undernourished pension funds."(New Jersey On-Line LLC)

Best Practices for Multiple Vendor 403(b) Plans Form 5500 Data Aggregation. August 2010 Draft Version (PDF)
30 pages. (The SPARK Institute)

[Official Guidance] Post April 30, 2010, Issues Impacting Adopting Employers Who Use IRS Pre-Approved Plan Documents
Excerpt:"This article is separated into two parts. Part I discusses the actions that need to be taken if an EGTRRA pre-approved DC restated plan document was not timely adopted by April 30, 2010. Part II addresses determination letter processing issues that apply to Form 5307/5300 determination letter applications made after April 30, 2010, in regard to pre-approved DC plans."(U.S. Internal Revenue Service)

Pension Fraud in New Jersey Extends Focus to Other States
Excerpt:"A spokeswoman for Gov. Pat Quinn's Office of Management and Budget, Kelly Kraft, said Illinois believed its pension disclosures were complete and accurate. The state has not hidden the fact that its pension funds have big shortfalls, she said, and there was no reason to think the S.E.C. might lodge a complaint against it, as it did with New Jersey."(The New York Times; free registration required)

Health Care Reform Act Provision Vastly Expands Information Reporting Requirements.
Excerpt:"Large businesses generally maintain so-called vendor or accounts payable ledgers, so they often already track such payments. For them, information reporting could simply involve transferring this information to a Form 1099. Depending on any relief granted, payments to employees as vendors for expense reimbursements could minimize the added burden of accumulating this data for the vendors used by each employee."(American Institute of Certified Public Accountants)

[Guidance Overview] DOL Clarification of Requirements for Service Provider Fee Disclosures (PDF)
7 pages. (Kelly, Hannaford&Battles P.A.)

5500 Filed Timely but Processed Late
Excerpt:"Some preparers have filed a 5500 shortly before the deadline but because the filing was not processed by midnight or initially was not processed at all, the DOL considers the filing late. In discussing the matter with the DOL, the DOL has confirmed that it considers the filing late and that the government may generate an automatic penalty letter."(SunGard Relius)

FASB Extends Comment Period on Loss Contingencies Exposure Draft which Includes Employer Reporting for Multiemployer Withdrawal Liability
Excerpt:"The proposed amendments would lower and broaden the current disclosure threshold. Current U.S. GAAP requirements would be enhanced with additional information required. Included in the subtopics to be amended is multiemployer plan withdrawal liability disclosure information."(International Foundation of Employee Benefit Plans)

DOL Will Not Provide Blanket Extension for 2009 Form 5500 Filings
Excerpt:"In a letter to the American Benefits Council, the DOL stated that such an extension was'neither necessary nor appropriate.'The American Benefits Council had requested a blanket extension for the 2009 plan year filings to the later of (1) 9 1/2 months after the end of the plan year or (2) December 31, 2010."(Wolters Kluwer)

Leeway Given in Early Retiree Reimbursement Applications
Excerpt:"Employers that did not use the U.S. Postal Service to send in their applications to participate in a new early retiree health care reimbursement program will not be required to submit a new application, the Department of Health and Human Services said."(Business Insurance)

[Guidance Overview] PBGC Proposes Notice, Liability and Recordkeeping Rules for Certain Facility Closings
Excerpt:"Employers would have less wiggle room in assessing whether a facility closure causing termination of more than 20% of active participants ('4062(e) event') has occurred, under an Aug. 9 PBGC proposal."(Mercer)

[Guidance Overview] Summary of Four Different Proposed or Final Rules Relating to 401(k) Fee Disclosure or Investment Advice Guidance (PDF)
6 pages. (Charles C. Shulman, Esq.)

[Guidance Overview] HHS Relief for Incomplete Applications to the Early Retiree Reinsurance Program
Excerpt:"HHS has provided three methods of correcting problems . . . ."(Wolters Kluwer)

[Guidance Overview] IRS Extends Filing Deadline for New Form 8955-SSA
Excerpt:"According to the Internal Revenue Service . . ., plan administrators of defined benefit and defined contribution plans will not be required to file Form 8955-SSA for the 2009 plan year until the IRS issues further guidance."(Towers Watson)

[Guidance Overview] Interim Final DOL Regulations Requiring New Fee Disclosures by Pension Plan Service Providers
Excerpt:"The Interim Final Regulations also continue the existing rule (without revision) that no contract or arrangement is'reasonable'if it does not permit termination by the plan without penalty to the plan on reasonably short notice under the circumstances to prevent the plan from becoming locked into an arrangement that has become disadvantageous."(Proskauer Rose LLP)

[Official Guidance] Disaster Relief Announcement 10-13 Relating to PBGC Deadlines in Response to Severe Storms, Flooding and Mudslides in Kentucky
Excerpt:"Pension Benefit Guaranty Corporation ('PBGC') is waiving certain penalties and extending certain deadlines in response to the severe storms, flooding and mudslides that occurred beginning July 17, 2010, in Kentucky."(Pension Benefit Guaranty Corporation)

[Official Guidance] Disaster Relief Announcement 10-14 Relating to PBGC Deadlines in Response to Hurricane Alex in Texas
Excerpt:"Pension Benefit Guaranty Corporation . . . is waiving certain penalties and extending certain deadlines in response to Hurricane Alex that occurred beginning June 30, 2010, in Texas."(Pension Benefit Guaranty Corporation)

[Guidance Overview] IRS Updated Specifications for Electronic Filing of Certain 2010 Information Returns, Including Forms 1099-R and 5498
Excerpt:"The revenue procedure, which supersedes Rev. Proc. 2009-30 published as Publication 1220, must be used for the preparation of Tax Year 2010 information returns and information returns for tax years prior to 2010 filed beginning January 1, 2011."(Wolters Kluwer)

FASB Proposal May Expand Disclosure About Multiemployer Pension Withdrawal Liability
Excerpt:"A new FASB proposal could require employers contributing to multiemployer pension plans to disclose information about their potential liability on withdrawing from the plan -- even if the possibility of withdrawal is remote -- if that liability would severely impact the employer."(Mercer LLC)

[Guidance Overview] ERISA Service Provider Fee Disclosure Regulations (PDF)
Excerpt:"These regulations amend existing rules under section 408(b)(2) of [ERISA] and parallel provisions of section 4972(d)(2) of the Internal Revenue Code and regulations thereunder."(Transamerica Center for Retirement Studies)

[Guidance Overview] DOL Commences Proxy Voting Inquiry to Access the Level of Compliance with ERISA (PDF)
2 pages. (Sutherland Asbill&Brennan LLP)

[Guidance Overview] IRS's HIRE Act Guidance on Self-Employed Individuals and More
Excerpt:"[A]n employer will be eligible for the payroll tax exemption under the HIRE Act, if it hires a self-employed individual, assuming the other requirements are met (e.g., the individual has not been employed (i.e., worked for an employer) for more than 40 hours during the 60-day period ending on the hire date)."(McGuireWoods LLP)

Revisions to Form LM-30 Proposed and Open for Public Comments
Excerpt:"The proposed rule would revise the Form LM-30 based on an examination of revisions made in the Form LM-30 Final Rule published on July 2, 2007."(International Foundation of Employee Benefit Plans)

[Opinion] Pension Rights Center Urges Change to'Active Participant'Reporting by DC Plans on Form 5500 (PDF)
2 pages. Excerpt:"Simply having an account balance does not implyactively contributing. . . . An improved definition of'active'participants will be of great benefit to policymakers, as well as to researchers, analysts, the media and consumer organizations such as ours."(Pension Rights Center)

[Guidance Overview] Centers for Medicare and Medicaid Services Updates HRA Coverage Reporting
Excerpt:"Among the issues addressed in the updated guide are references to changes in reporting for Health Reimbursement Arrangements (HRAs). CMS has removed all references from the updated guide that previously referred to reporting only for'free-standing'HRAs."(Fisher&Phillips LLP)

Update on DOL Regulations on Fee Disclosure as of August 3, 2010
Excerpt:"The regs are being issued in two parts: First part concerns the obligations of service providers to the fiduciaries; Second part is the obligation of the fiduciaries to the beneficiaries; First part out now, Second part in a few months and they are pending at the White House Office of Management and Budget. [The target page provides links to further information.]"(National Association of Government Defined Contribution Administrators)

[Guidance Overview] New Disclosure Rules for 401(k) Fees Go Into Effect Next Year
Excerpt:"Beginning July 16, 2011, service providers that are paid $1,000 or more from a retirement account must document the direct and indirect compensation they receive in connection with the services they provide."(AccountingWEB)

Timely Form 5500 Filing Does Not Preclude Later Funding Relief Election
Excerpt:"IRS expects to offer guidance on a range of funding relief issues, including election procedures, contribution calculations, implications for multiemployer plan status certifications, participant notices and reporting requirements (if the 5500 was already filed)."(Mercer LLC)

[Guidance Overview] IRS Addresses Time-Sensitive Aspects of Electing Alternative Amortization Schedules
Excerpt:"The Notice does not answer many of the key questions relating to the relief, including how to make an election to take advantage of the alternative shortfall amortization schedules. But it does respond to one question that apparently has come up regarding whether filing a Form 5500 for a plan year will preclude the plan sponsor from electing relief for that year."(Deloitte via BenefitsLink.com)

[Guidance Overview] Unreimbursed Multiemployer Plan Expenses Paid by Contributing Employer and Schedule C of Form 5500
Excerpt:"The instructions to the Schedule C . . . specifically exclude certain payments, such as certain compensation paid by the plan sponsor to its employees (for services to the plan) and other plan expenses paid by the plan sponsor, if such payments are not reimbursed by the plan."(Wolters Kluwer)

Form 5500 Schedule C Issues Creating a Potential Rift Between Plan Sponsors and Service Providers (PDF)
2 pages. Excerpt:"Unfortunately, early indications are that there is a difference between what is required to be reported and what will actually be enforced if there is a mistake or misrepresentation. Although the number of specific identification codes has been expanded to 55, and you are supposed to list as many as may be applicable to a specific fee, quite a few codes lack clear definition."(Prime Trust Advisors)

Fees Paid by Bargaining Parties Not Shown on Multiemployer Plans'5500 Schedule C
Excerpt:"Service provider fees are not reported on a multiemployer plan's Form 5500 Schedule C if paid by contributing employers, employer associations or participating unions and not reimbursed from plan assets, according to an information letter issued by [DOL]."(Mercer LLC)

[Guidance Overview] Service Provider Fee Disclosure Under ERISA ? 408(b)(2) (PDF)
3 pages. Excerpt:"This Regulatory Brief will provide an overview of the new regulation, including a review of the impacted parties, the information to be disclosed, and Vanguard's approach to compliance."(The Vanguard Group, Inc.)