Posts Categorized: Retirement Plans

DOL Finalizes New Rule to Address Conflicts of Interest in Retirement Advice

in Fiduciary Issues, Retirement Plans

On April 6, 2016, the Department of Labor released the final version of the new fiduciary rule. The new rule followed a long and extended comment period for the 2015 proposed rule, with much lobbying on both sides. The final rule is substantially revised from the proposed rule which was issued in 2015. The Department also released a chart which highlights changes from the proposed rule to the final rule.

IRS Announces Future Determination Letter Guidance in Notice 2016-03

in IRS Examinations, Qualified Plans, Retirement Plans, Tax Issues

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 than one plan may file for determination letters during the Cycle A submission period beginning February 1, 2016 and ending January 31, 2017, provided a Cycle A… Continue Reading

Plan Sponsor Forced to Restore Plan Benefits Due to Intentionally Misleading Communications to Employees

in Fiduciary Issues, Qualified Plans, Retirement Plans

On September 29, 2015, the U.S. District Court for the Southern District of New York issued a decision that emphasizes the importance of accurate communications to employees regarding changes in qualified retirement plan benefits. In Osberg v. Foot Locker, Inc., the plaintiffs in the class action consisted of nearly 16,000 participants in a defined benefit pension plan sponsored by Foot Locker. Prior to 1996, Foot Locker sponsored a traditional defined benefit pension plan in which benefits were defined as an annual life annuity commencing at age 65. Like most traditional defined benefit pension plans, the plan also provided early retirement… Continue Reading