News

Industry & Regulatory News

Emergency Savings Proposal Introduced

Senators Todd Young (R-IN), and Cory Booker (D-NJ) have introduced the Emergency Savings Act of 2022. The proposal would allow “pension-linked” savings accounts for participants of up to $2,500 (subject to cost-of-living adjustments) to be used for unexpected expenses. The accounts would be treated in the same manner as after-tax contributions, and plan sponsors could automatically enroll a participant with a compensation deferral percentage not to exceed three percent. The account can be invested as cash, in an interest-bearing deposit account, or an investment product designed to preserve principal and provide a reasonable rate of return—and is not subject to any unreasonable fees, restrictions, expenses or charges in connection with the account or withdrawals.

May 26 2022

Industry & Regulatory News

SEC Proposes Enhanced Disclosures About ESG Investment Practices

The Securities and Exchange Commission (SEC) has issued a proposed rule that would add reporting requirements for registered investment advisors, registered investment companies, certain advisers that are exempt from registration, and business development companies to provide additional information regarding their environmental, social, and governance (ESG) investment practices.

May 26 2022

Industry & Regulatory News

Proposal Would Increase 529 Amounts Available for K-12 Expenses

Senator John Kennedy (R-LA) has introduced S. 4265, the Inflation-Adjusted Education Investment Act. The proposal would increase the current limit on 529 plan distributions from $10,000 to $12,000. The bill would also make the new cap adjustable for inflation beginning in 2023.

May 23 2022

Industry & Regulatory News

Mental 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).

May 20 2022

Industry & Regulatory News

Final Form 5500 Revisions Guidance Issued

The Department of Labor’s Employee Benefits Security Administration (EBSA), IRS, and the Pension Benefit Guaranty Corporation (PBGC) have released final forms revisions to the Form 5500 Annual Return/Report of Employee Benefit Plan and Form 5500-SF Short Form Annual Return/Report of Employee Benefit Plan, and related instructions, that apply to plan year reports beginning on or after January 1, 2022. A proposed rule was issued last September.

May 20 2022

Industry & Regulatory News

IRS Issues Yield Curves and Segment Rates for DB Plan Calculations

The IRS has issued Notice 2022-25, which contains updated guidance on factors used in certain defined benefit (DB) pension plan minimum funding and present value calculations. Updates include the corporate bond monthly yield curve, the corresponding spot segment rates for May used under Internal Revenue Code Section (IRC Sec.) 417(e)(3), and the 24-month average segment rates under IRC Sec. 

May 20 2022

Industry & Regulatory News

Proposed: 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.

May 18 2022

Industry & Regulatory News

IRS 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.”

May 17 2022
IRS

Industry & Regulatory News

IRS 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.

May 13 2022

Industry & Regulatory News

IRS 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.

May 13 2022