Deferred Compensation News and Updates

Deferred Compensation News brings you the latest information and insights on 409A nonqualified deferred compensation; institutional COLI, BOLI, and ICOLI; tax-and cost-efficient non-COLI funding strategies; low-cost tax managed non-COLI asset/liability designs; executive benefits benchmarking; succession planning and timely issues of executive pay and benefits. 
Featured image for “DOL Releases Clarifications About Lifetime Income Illustrations”
August 17, 2021

DOL Releases Clarifications About Lifetime Income Illustrations

Employee Benefits Security Administration

Late last month, the Employee Benefits Security Administration (EBSA) of the Department of Labor, issued answers regarding the timing of when plan sponsors are required to include lifetime income illustrations on plan participant’s retirement statements. This guidance applies to defined contribution plans only.
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May 07, 2021

Cybersecurity for Your Defined Benefit Plan

Employee Benefits Security Administration

Last month, the U.S. Department of Labor (DOL) issued a press release aimed at defined benefit plan sponsors, plan fiduciaries, record keepers, and plan participants. For the first time, the DOL’s Employee Benefits Security Administration issued cybersecurity guidance.
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Featured image for “Partisan Politics and Proposed ESG Investing Restrictions by the DOL”
July 21, 2020

Partisan Politics and Proposed ESG Investing Restrictions by the DOL

Employee Benefits Security Administration

Proposed Department of Labor regulations on ESG investing (environmental, social, and governance) by retirement plans have drawn criticism from thirteen members of the US Senate. In a comment letter dated July 15, 2020,  Independent party member, Senator Bernie Sanders, along with 12 Democratic Senators*, expressed “deep concern” over the DOL’s  proposal “discouraging retirement plan fiduciaries from considering environmental, social, or governance (ESG) criteria in their investment decisions relating to ERISA-governed** retirement plans.”
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September 04, 2019

IRS Updates Determination Letter Program and Revises Correction Procedures Under EPCRS

Employee Benefits Security Administration

Isler Dare Employee Benefits Update Re: IRS Updates Determination Letter Program and Revises Correction Procedures Under Employee Plans Compliance Resolution System (EPCRS) This employee benefits update (first published May 2019)  is provided courtesy of Isler Dare PC (www.islerdare.com) and was written by Andrea I. O’Brien, Vi D. Nguyen, Jeanne Floyd, and Ashley F. Hedge. Recent Legal Developments for Employee Benefit Plans Executive Summary Expansion of IRS Determination Letter Program: The Internal Revenue Service added new categories of qualified retirement plans eligible to request determination letters. Plan sponsors should determine whether they qualify for the expanded categories and, if so, whether they wish to apply for a determination letter. Expansion of the IRS Retirement Plan Correction Guidelines: The IRS has revised its Employee Plans Compliance Resolution System to include additional types of failures available for self-correction. Plan sponsors should continue to promptly identify errors in their retirement plans’ documents and operations and consult with counsel about how to utilize available correction methods. New Voluntary Correction Program[i] (VCP) Electronic Filing System: Plan sponsors submitting VCP applications must do so online at pay.gov.   IRS Updates Determination Letter Program In 2017, the Internal Revenue Service (the “IRS”) limited its determination letter program for
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November 06, 2014

Electronic DOL Filing for Top Hat Plans to Be Mandatory

Employee Benefits Security Administration

Nonqualified deferred compensation “top hat” plans do not require annual Form 5500s. Instead, the Department of Labor requires a Top Hat plan disclosure letter whenever a new plan is implemented. Nonqualified Deferred Compensation Plans enable executives and other high-income earners to defer income beyond the limits of qualified 401(k) plans. These plans garner more attention any time there are tax law changes or changes in corporate benefit plans in which companies contribute less to an executive’s retirement plan, thereby motivating the executive to defer or otherwise protect more of his or her pre-tax earnings. The following announcement by AALU, shared by Fulcrum Partners, looks at proposed changes for how plan administrators will file Top Hat Plan statements in the future.   AALU November 3, 2014: Electronic DOL Filing for Top Hat Plans to Be Mandatory by Fulcrum Partners LLC
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