On January 25, 2016, the United States Supreme Court issued an opinion in Harris v. Amgen that will impact the pleading standard for stock drop litigation. The plaintiffs in Harris are former employees of Amgen Inc. who participated in their employer’s qualified ESOPs. When the value of Amgen stock fell significantly from 2005 to 2007, participants sued, claiming that Amgen violated their fiduciary duty of care under ERISA by continuing to offer the Amgen common stock fund as an...Continue Reading
Once again, at the end of 2015, the monthly transit benefit amount not subject to tax was retroactively increased from $130 per month to $250 month (it has been increased to $255 for 2016, so employers will not have this same correction problem next year). IRS Notice 2016-06 provides a special administrative procedure employers can use in filing Form 941 and Forms W-2 to reflect the changes in the amounts excludable from income. This will be of importance to those employers that...Continue Reading
On January 4, 2016, the IRS issued Revenue Procedure 2016-8, which provides guidance for complying with the user fee program of the Voluntary Correction Program (VCP). Effective February 1, 2016, the fees for a VCP filing for most new submissions will be reduced, a change made to encourage employers who sponsor 401(a) and 403(b) plans to correct plan failures through VCP. The following table summarizes the general VCP fee changes:
|Number of Plan Participants||Fee Prior to 2/1/2016||Fee as...Continue Reading|
In Notice 2016-03, the IRS provides an overview of guidance it intends to release to implement certain aspects of its decision to end the regular determination program, effective January 1, 2017, which it previously announced in Announcement 2015-19. (See this entry). Notably, employers may rely on the guidance issued in Notice 2016-03 until further guidance is issued.
Notice 2016-03 provides that:
• Controlled group members, including affiliated service group members, that maintain more...Continue Reading
Please see our 2016 Benefit Plan Limits Legal Alert, updated for the transit parity provisions signed into law last month.
The Legal Alert can be found here.
Supreme Court Review in Amgen v. Sandoz – Amgen Decides not to Seek Review; Sandoz is Granted Filing Extension blognetwork.kilpatricktownsend.com/hlt/2016/01/26…
Top 10 409A mistakes webinar sites-kilpatricktownsend.vuturevx.com/9/849/february…