Legislative & Regulatory Updates

Temporary Halt to Overtime Rule Regulations

On November 22, 2016, a federal judge issued a preliminary injunction that temporarily blocks the new overtime regulations on a national basis that were scheduled to take effect on December 1, 2016.

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Good News! – But Stay the Course – IRS Notice 2016-70 Provides Reporting Extension Under Codes 6055 of the Internal Revenue Code

The Department of Treasury and IRS have extended, by 30 days, the due date to furnish the 2016 Form 1095-B and the 2016 Form 1095-C, to March 2, 2017.

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Patient-Centered Outcomes Research Institute (PCORI) Fees Update

The IRS has published the new fee that will be applicable for policy years and plan years that end on or after October 1, 2016 and before October 1, 2017. That new fee, which is assessed and calculated using the average number of lives (includes spouses and dependents) covered under the policy, is $2.26 per covered life.

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Reminder to Pay Transitional Reinsurance Program Fees

If you paid the 2015 Transitional Reinsurance Fee of $44 per member (applies to both employee and covered dependents) in installments, the 2nd installment of $11 per member is due November 15, 2016.

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Hurricane Matthew Victims Get a Helping Hand from the IRS

The Internal Revenue Service (IRS) announced on October 21, 2016 that participants in 401(k) plans, 403(b) tax-sheltered annuities and 457(b) deferred compensation plans may be able to use newly announced streamlined rules to alleviate the financial hardships caused by Hurricane Matthew with loans and hardship distributions.

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Correction Program No Longer A Puzzle in Pieces for Retirement Plan Sponsors

The new procedure for the Employee Plans Compliance Resolution System (EPCRS) will make it easier and clearer for retirement plan sponsors to correct plan failures so that the plans can continue on a tax-favored basis.  Parts of EPCRS had been in three separate revenue procedures, and the new Determination Letter program had confused other portions of EPCRS.  Now, there is more clarity, and it's in one place.

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PBGC Issues Final Regulations on Section 4010 Filings for Unfunded Plans

The PBGC has issued an updated set of rules regarding ERISA 4010 reporting.

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October 14 Deadline - Medicare Part D Notice

It's that time of year again when employers must comply with notifying Medicare-eligible members covered under employer-sponsored health plans whether their prescription drug (Rx) benefits qualify as "creditable coverage" under Medicare Part D. The Medicare Part D Notice is due by October 14, 2016.

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A Taxpayer Win - Self-Certification for Waiver of the 60-day Rollover Limit
On August 24, 2016, the IRS issued Revenue Procedure 2016-47, which provides that an individual taxpayer can self-certify that they are eligible for a waiver of the 60-day rollover requirement by using the model letter provided in the Revenue Procedure.

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Considerations in Complying with ACA Section 1557 Non-discrimination Rules

On May 18, 2016, the Department of Health and Human Services (HHS) released its final rules for Section 1557 of the Affordable Care Act (ACA). Under ACA Section 1557, an individual may not be excluded from participation in, denied benefits of, or be subjected to discrimination under a health plan which is receiving Federal financial assistance if such discrimination is prohibited under Title VI of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972, the Age Discrimination Act of 1975, or Section 504 of the Rehabilitation Act of 1973. 

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Findley Davies Review of Proposed Regulations Under Section 409A

The IRS issued proposed regulations which clarify and modify Section 409A which governs deferred compensation arrangements. Plan sponsors will want to decide if they will continue to rely on the current regulations or comply with the proposed regulations going forward.

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