Source: http://cyberisa.com/news_whatsnew_2018.html
Timestamp: 2019-03-22 07:59:08
Document Index: 248127037

Matched Legal Cases: ['§1', '§512', '§2510', '§2510', '§4001', '§502', '§240', '§240', '§275']

whatsnew_2018
Pension News in 2018
The following list tracks important guidance that were released during 2018. These items are summarized in detail, with appropriate commentary, in our quarterly newsletter, eRISA Update. See our Newsletters page to sign up for eRISA Update.
Congress eliminates 6-month suspension rule and requirement to access available plan loans, and permits all contributions sources and earnings on elective deferrals to be available for hardship withdrawal in post-2018 plan years [Citation: Sections 41113 and 41114 of the Bipartisan Budget Act of 2018 (“BBA2018"), P.L. 115-123 (February 9, 2018)]
Congress allows levied money on retirement plan assets that is returned by the IRS to be rolled over [Citation: Section 41104 of the Bipartisan Budget Act of 2018 (“BBA2018"), P.L. 115-123 (February 9, 2018)]
Proposed regulations address new hardship distribution rules enacted by recent legislation, add safe harbor hardship event for natural disasters [Citation: Prop. Treas. Reg. §§1.401(k)-1(d), 1.401(k)-3(c), 1.401(k)-6, 1.401(m)-3(c)(6)(v), 83 F.R. 56763 (November 14, 2018)]
Text available at http://bit.ly/2A8uec3
Annual update of Employee Plans determination letter application, user fee, and private letter ruling application procedures [Citation: Rev. Proc. 2018-4, 2018-1 I.R.B. (January 2, 2018)]
Two-year window to restate defined benefit M&P plans and volume submitter plans for second remedial amendment cycle ends April 30, 2020; determination letter program opens May 1, 2018 [Citation: Announcement 2018-5, 2018-13 I.R.B. (March 26, 2018)]
Verification of compliance with second cycle requirements for existing Pre-Approved Plan providers to submit opinion letter applications for the third cycle [Citation: Applications for Pre-Approved Contribution Plan Opinion Letters (May 23, 2018). at IRS website]
Submission cycle for third cycle extended for DC Pre-Approved Plans [Citation: Rev. Proc. 2018-42, 2018-36 (September 4, 2018; advance release on August 15, 2018)]
IRS issues interim guidance and requests comments regarding calculation of UBTI under IRC §512(c)(6) for exempt organizations engaged in more than one unrelated trade or business [Citation: Notice 2018-67, 2018-36 (September 4, 2018)]
Text available at http://bit.ly/2LLDlDv
IRS extends relief in Announcement 2017-15 to employees affected by Hurricanes Florence and Michael [Preamble to Proposed Regulations on Hardship Distributions, 83 F.R. at 56766 (November 14, 2018)]
Adjusted dollar limits for 2019 [Citation: Notice 2018-83, Notice 2018-83, 2018-47 I.R.B. (November 19, 2018) (advance release on November 1, 2018)]
Text available at https://www.irs.gov/pub/irs-drop/n-18-83.pdf
Updated procedure for acts that may be extended on account of a federally-declared disaster [Citation: Rev. Proc. 2018-58, 2018-50 I.R.B. (December 10, 2018) (advance release on November 20, 2018)]
Text available at http://bit.ly/2Qlka9W
Relief given to 403(b) plans regarding the “once” lookback rule for applying the part-time employee exclusion under the universal availability test [Citation: Notice 2018-95, 2018-52 I.R.B. (December 24, 2018) (advance release on December 4, 2018)]
Text available at http://bit.ly/2G0uoZv
2018 Required Amendment List issued by the IRS [Citation: Notice 2018-91, I.R.B. (December 26, 2018) (advance release on December 5, 2018)]
Text available at http://bit.ly/2OWOcvO
DOL relaxes “commonality” standard to determine if certain multiple employer welfare plans (Association Health Plans) constitute a single-plan in order to expand the market for group health coverage [Citation: DOL Reg. §2510.3-5, 83 F.R. 28912 (June 21, 2018)]
DOL proposes to relax “commonality” standard to determine if certain multiple employer defined contribution plans constitute a single-plan in order to expand coverage of employees in workplace retirement plans [Citation: Prop. DOL Reg. §2510.3-55, 83 F.R. 53534 (October 25, 2018)]
Text available at http://bit.ly/2SdGBfb
Regulations incorporate PPA 2006 changes to the phase-in rules for guaranteed benefits for majority owners [Citation: PBGC Reg. §§4001.2, 4022.24-4022.26, 4022.62-4022.63, 4043.2, 4044.10, 4044.14, 83 F.R. 49799 (October 3, 2018)]
Text available at http://bit.ly/2RnVdbt
DOL extends temporary enforcement policy on Fiduciary Rule pending further guidance; acknowleges impact of Fifth Circuit opinion vacating the Fiduciary Rule [Citation: Field Assistance Bulletin (FAB) 2018-02 (May 7, 2018)]
Text available at http://bit.ly/2JZ0t0Ht
DOL clarifies aspects of Interpretive Bulletins 2016-01 and 2015-01 [Citation: Field Assistance Bulletin 2018-01 (April 23, 2018)]
DOL opines on fiduciary responsibilities associated with an auto-portability program designed to match former employees’ default IRAs with plans of a subsequent employer [Citation: DOL Advisory Opinion 2018-01A (November 5, 2018)]
Text available at http://bit.ly/2B4K5uf
Killer statute determined not to be preempted by ERISA; applicable to person found not guilty by reason of insanity [Citation: Laborers’ Pension Fund v. Miscevic, 880 F.3d 927 (7th Cir. January 29, 2018)]
Fifth Circuit vacates entire fiduciary regulation and related PT exemptions, while Tenth Circuit rules that limiting PTE 84-24 to fixed rate annuities was not an improper exercise of regulatory action [Citation: Chamber of Commerce v. DOL, 885 F.3d 360 (5th Cir. March 15, 2018); Market Synergy Group, Inc. v. DOL, No. 885 F.3d 676 (10th Cir. March 13, 2018)]
Application of state law limitations period depended on the basis of the claim; class certification; doctrine of contra proferentum not applicable under Firestone deference standard [Citation: Clemons v. Norton Healthcare Inc. Retirement Plan, 890 F.3d 254 (6th Cir. 2018)]
Arbitration clause in employment contract did not apply to action under ERISA §502(a)(2) because the suit was brought on behalf of the plan [Citation: Munro v. University of Southern California, ___ F.3d ___ (9th Cir. July 24, 2018)]
Text available at http://bit.ly/2Jb9h4q
Court held trust that is in a controlled group with employer was liable to PBGC for funding liabilities because its leasing of land to the employer was a trade or business, and federal common law of successor liability also can be applied [Citation: PBGC v. Findlay Industries, Inc., ___ F.3d ___, No. 17-3520 (6th Cir. September 4, 2018)]
Text available at http://bit.ly/2wNpCX8
Ministerial employees’ misinformation about distribution options may amount to a fiduciary breach by the fiduciary for whom the employees work as agents, but accurate information in SPD will foreclose recovery [Citation: DeRogatis v. Board of Trustees of the Central Pension Fund, ___ F.3d ___, No. 16-3549-cv (2nd Cir. September 14, 2018)]
Text available at http://bit.ly/2xKeEmH
First Circuit addresses burden of proof issues surrounding fiduciary breach allegations regarding use of proprietary funds and unreasonableness of fees, and the application of PTE 77-3 to in-house mutual fund investments [Citation: Brotherston v. Putnam Investments, LLC, No. 17-1711, ___ F.3d ___ (1st Cir. October 15, 2018)]
Text available at http://bit.ly/2qv2c6r
IRA and 401(k) funds obtained in a property settlement were not exempt from bankruptcy estate as retirement funds [Citation: Lerbakken v. Sieloff and Associates, P.A. (In re Lerbakken), ___ F.3d ___, No. 18-6018 (8th Cir. October 16, 2018)]
Text available at http://bit.ly/2ySORJt
Second Circuit breathes some life into pleading standards for stock drop cases based on nonpublic information [Citation: Jander v. Retirement Plans Committee of IBM, ___ F.3d ___, No. 17-3518 (2nd Cir. December 10, 2018)]
Text available at http://bit.ly/2Rlrnrd
SEC proposes rules to enhance protections for retail investors and to clarify investment professional relationships [Citation: Prop. SEC Reg. §§240.15l-1, 240.17a-3 (“Rule 17a-3"), 240.17a-4(e)(5) (“Rule 17a-4"), 83 F.R. 21574 (May 9, 2018), Prop. SEC Reg. §§§240.17a-14(f), §275.211h–1, and 275.204-5(e), 83 F.R. 21416 (May 9, 2018), Release No. IA–4889, 83 F.R. 21203 (May 9, 2018)]
Executive Order directs DOL to expand access to multiple employer plans, make retirement plan disclosures more understandable and useful, and review life expectancy factors for RMD purposes [Executive Order on Strengthening Retirement Security In America (August 31, 2018)]