Industry & Regulatory NewsMental Health Matters Act Proposed in House
Representative Mark DeSaulnier (D-CA) has introduced H.R. 7780, the “Mental Health Matters Act,” which strengthens behavioral health benefits in schools and also amends provisions of the Employee Retirement Income Security Act (ERISA).
Industry & Regulatory NewsProposed: Employee and Retiree Access to Justice Act
Representative Mark DeSaulnier (D-CA) has introduced HR 7740 – the Employee and Retiree Access to Justice Act. The bill proposes to amend ERISA to provide that any mandatory predispute or coerced postdispute arbitration clause, class action waiver, representation waiver, or discretionary clause with respect to a plan is unenforceable. The bill would also amend ERISA to prohibit any such clause or waiver from being included in a plan document or other agreement with participants. A Senate companion bill was introduced by Senator Tina Smith (D-MN).
Representative DeSaulnier is the Chair of the House Subcommittee on Health, Employment, Labor and Pensions. Senator Smith is a member of the Senate Health, Education, Labor and Pensions Committee.
Industry & Regulatory NewsIRS Announces Applicable Federal Rates for June 2022
The IRS has issued Revenue Ruling 2022-10, which contains the applicable federal rates (AFR) for June 2022. These rates are used for such purposes as calculating distributions from retirement savings arrangements that meet the requirements for substantially equal periodic payments (a 10 percent early distribution penalty tax exception), also referred to as “72(t) payments.”
Industry & Regulatory NewsIRS Issues Deadline Relief for New Mexico Victims of Wildfires and Straight-Line Winds
The IRS has issued a news release announcing the postponement of certain tax-related deadlines for victims of wildfires and straight-line winds in New Mexico. The tax relief postpones various tax filing deadlines that began April 5, 2022.
Industry & Regulatory NewsIRS Further Extends Temporary Relief from Physical Presence Requirement for Retirement Plan Consents
The IRS today issued Notice 2022-27, extending guidance released previously under Notice 2020-42 and extended by Notice 2021-03 and Notice 2021-40. The Notice provides additional temporary relief from the physical presence requirements for certain elections that are made by participants and beneficiaries in qualified retirement plans and other tax-favored retirement arrangements.
Industry & Regulatory NewsSmall Business Retirement Proposals Introduced in Senate
May 11, 2022 – Senator John Hickenlooper (D-CO) has introduced two retirement bills in the Senate. The Simplifying Small Business Retirement Savings Act, co-sponsored by Senator Susan Collins (R-ME), would require a group of plans filing a single Form 5500 under the SECURE Act to have an individual audit opinion for each plan that would otherwise be subject to an audit requirement. Additionally, the proposal would allow the designation of a fiduciary (other than an employer) to be responsible for collecting contributions to the plan in a pooled employer plan (PEP). The bill also directs the Secretary of Labor to conduct a study on PEPs.
The Incentivizing Small Business Retirement Savings Act would provide a tax credit for employer contributions of up to $1,000 per non-highly compensated employee, with a 2 percent reduction or phaseout of the credit for each employee that exceeds 50 employees. The credit would equal 100 percent in the first tax year and would be reduced by 25 percent each tax year for years 2-4.
Industry & Regulatory NewsFinancial Freedom Act Proposed in Senate
May 10, 2022 – Senator Tommy Tuberville (R-AL) has introduced the Financial Freedom Act, legislation aimed at prohibiting the Department of Labor (DOL) from restricting the types of investments that plan participants can choose through participant directed accounts and self-directed brokerage accounts. The bill is in response to regulatory guidance released by the DOL and announced in March.
Industry & Regulatory NewsSEC Extends Comment Period for ESG Reporting Proposal
May 9, 2022 – The SEC has extended the period to comment on its proposed rule regarding climate-related disclosures initially released in March, and published in the federal register on April 11, 2022. The proposal would require publicly traded companies to include certain climate-related disclosures in registration statements and periodic reports such as the annual Form 10-K. Additional details were previously announced in March. The comment deadline was extended from May 20 2022, to June 17, 2022.
Industry & Regulatory News2023 HSA Limits Released
May 3, 2022 - The IRS has issued Revenue Procedure 2022-24, providing inflation-adjusted amounts for health savings accounts (HSAs) for calendar year 2023. Maximum annual HSA contributions will rise from $3,650 to $3,850 for those with self-only insurance coverage, and from $7,300 to $7,750 for those with family coverage.
Minimum deductible amounts for qualifying high deductible health plans will increase from $1,400 for self-only coverage to $1,500, and from $2,800 to $3,000 for a family plan. Maximum annual out-of-pocket amounts under self-only coverage will rise from $7,050 to $7,500, and from $14,100 to $15,000 for family coverage.
Industry & Regulatory NewsIRS Proposes Update to Mortality Tables Used for DB Plans
May 3, 2022 - The Department of Treasury and Internal Revenue Service have released proposed regulations to update the mortality tables that are used to calculate minimum required contributions for single-employer defined benefit pension plans. The regulations are proposed to be first effective for plan years beginning in 2023.
Comments must be received by June 9, 2022. A public hearing on these proposed regulations has been scheduled for June 28, 2022. The regulations will be reviewed, and additional details provided as warranted.