IRS to Hold Webinar on ACA Reporting

The Internal Revenue Service has indicated that it will host a webinar on "The Affordable Care Act: How Applicable Large Employers Should Report Health Care Coverage under IRC Section 6056" on August 14th. The IRS indicates that the webinar will discuss:

"Internal Revenue Code Section 6056; Who is required to report; What elements are required to be reported; When Applicable Large Employers must report; [and] How do government entities designate reporting"For more information, click here.

Government issues final ACA reporting regulations

In "FACT SHEET: Final Regulations Implementing Information Reporting for Employers and Insurers under the Affordable Care Act (ACA)", the government indicated that:

"[T]he U.S. Department of the Treasury and the Internal Revenue Service (IRS) released final rules to implement the information reporting provisions for insurers and certain employers under the ACA that take effect in 2015."

The fact sheet is available here.

The final regulations under IRC section 6055 are available here.

The final regulations under IRC section 6056 are available here.

ERIC Urges PBGC to Withdraw Proposed Regulations on Reportable Events

The ERISA Industry Committee (ERIC), the Washington, D.C.-based trade association representing America’s major employers, yesterday submitted comments to the Pension Benefit Guaranty Corporation (PBGC) urging the agency not to finalize proposed regulations on reportable events requirements, but instead to maintain the existing regulations in their current state.

“ERIC understands that the PBGC believes that the current regulations should be revised. However, ERIC believes that the current regulations are appropriate and sufficient to protect the PBGC,” said Kathryn Ricard, ERIC’s Senior Vice President for Retirement Policy.

The PBGC in April 2013 issued proposed regulations under the Employee Retirement Income Security Act (ERISA) that would change the circumstances under which plan administrators must notify the PBGC of the occurrence of certain “reportable events.” The PBGC in November 2009 had previously proposed to increase the reporting requirements by eliminating most reporting waivers currently permitted under the existing regulations, but withdrew the proposal after objections from ERIC and other organizations.

ERIC’s letter argues, among other things, that the PBGC already has the appropriate tools to identify at-risk plans with the existing reportable events rules, and that the Pension Protection Act of 2006 (PPA) is working as intended in protecting the interests of the PBGC and benefits earned by participants.

For a copy of ERIC’s press release, click here.

For a copy of the comment letter, click here.

ERIC Requests Relief from DOL on Timing of Participant Disclosure

ERIC has submitted a letter to the Department of Labor requesting relief relating to the timing of participant fee disclosures under section 404 of ERISA.

In particular, ERIC's letter highlights the fact that as most plans operate on a calendar year basis, requiring plan sponsors to distribute participant fee disclosures “off-cycle” with these other year-end disclosures causes undue administrative burden and additional cost.

ERIC asked that the Department interpret the regulation’s definition of “at least annually thereafter” to at least once in any twelve-month period, but no later than 18 months from the last annual disclosure.

The comment letter is available here.

PBGC Revamps Reporting Requirements for DB Plans

The Pension Benefit Guaranty Corporation (PBGC) just issued a proposed regulation that would change the reporting rules for defined benefit plans. The new proposal focuses on companies and plans that are at substantial risk of default. The PBGC expects the new rules would exempt or waive many reporting requirements for more than 90% of plans and sponsors and reduce the burden by around 75% for financially sound companies. Reporting requirements would also be made simpler and more uniform.

This proposed rule reverses the PBGC’s earlier proposal, which would have increased reporting requirements by eliminating most reporting waivers. According to the proposed regulations, the PBGC’s change in position was in response to letters from ERIC and others.

ERIC Members and Trial Members can read more here.

A copy of the proposed regulation is available here.