Alerts & Bulletins

Treasury Regulations Permit Lower Required Minimum Distribution

Announced by the U.S. Treasury Department, the final regulations for Qualifying Longevity Annuity Contracts (QLACs) have been released. To be issued by insurance companies, QLACs lower required minimum distributions (RMDs) after age 70 ½ and provide guaranteed income for life. Cherry Bekaert Benefits Consulting’s alert on these regulations can be read on the Cherry Bekaert Benefits Consulting site.

Highway & Transportation Funding Act of 2014: Extending Pension Funding Relief

Expected to be signed by President Obama, the Highway and Transportation Funding Act of 2014 (HTFA) will help allot funds for the highway budget through 2015 and provide additional pension funding flexibility for all plan sponsors. The bill will continue to track a 25-year interest rate average, but will succeed the Moving Ahead for Progress in the 21st Century Act (MAP-21), which will phase out of offering relief to pension plans. This also delays the expansion of interest rate corridors and will leave PBGC premium increases unaffected. If you are a plan sponsor seeking lowered minimum required pension contributions and. Read More.

IRS Releases Draft ACA Reporting Forms

On July 24th, the Internal Revenue Service (“IRS”) issued DRAFT Affordable Care Act (ACA) reporting forms to advise Applicable Large Employers and employers who sponsor self-funded health plans on which required information must be sent to the IRS and communicated to plan participants. All Applicable Large Employers with at least 50 full-time equivalent employees in the 2014 calendar year will be required to prepare these reports. Additionally, any Applicable Large Employers that sponsor fully insured arrangements must complete Parts I and II of Form 1095-C, while employers with self-funded plans will be required to complete Part III of Form 1095-C.. Read More.

Prevailing Practices in Risk Reporting

By Derrick Sturisky Background Accurate, valid, and timely performance data is critical to well-informed decision making. It is also fundamental in supporting: Boards in executing effective strategic oversight and direction. Stakeholders in reviewing financial, operational, and compliance performance. Management in successfully executing the business strategy and running the operations effectively and efficiently. Due to increased convergence between strategy, operations, risk, and compliance, there is also emerging demand for accurate risk data – and for integrating this risk data with traditional performance data. Prevailing risk reporting practices include: Addressing the entire portfolio of strategic, financial, compliance, and operations risks. Providing risk information within. Read More.

IRS Notice May Reduce PFIC Reporting for Your Tax-Exempt Organization

If your tax-exempt organization owns passive foreign investment company (PFIC) stock, your reporting requirements may be changing. On December 31, 2013, proposed regulations were published under Sections 1291 and 1298 of the Internal Revenue Code that defined the term “shareholder” for purposes of PFIC taxation and information reporting rules. Internal Revenue Service (“IRS”) Notice 2014-28 (the “Notice”) confirms that the effect of these regulations is to reduce the number of tax-exempt PFIC shareholders who are required to file Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, with their annual tax returns.. Read More.

Patient-Centered Outcomes Research Institute Fee Due July 31, 2014

The Patient-Centered Outcomes Research Institute (“PCORI”), a government entity that was created under the Affordable Care Act of 2010 (“ACA”), is funded by a fee from certain insurance companies and employers. If you have a self-insured plan, you likely will need to file Form 720 and pay this fee by July 31st. Insurance companies should be completing this process for you if your plan is insured. What is the PCORI? The purpose of the PCORI is to conduct, support and synthesize research on the outcomes, effectiveness, and appropriateness of healthcare services and procedures. The fee applies to insurance companies that. Read More.

Government Overpayments Approached $100 Billion in 2013

Ahead of this week’s House Oversight subcommittee hearing, it was announced that the U.S. government last year spent $97 billion making payments to people not permitted to them. While the Obama administration has worked to lower improper payments since 2010, estimates show the government continues to waste money at a time when Congress is seeking ways to trim the budget. Representing the biggest chunk of such payments are government health care programs like Medicare ($36 billion) and Medicaid ($14.4 billion). Other programs that received overpayments in 2013 include the earned income tax credit ($14.5 billion), unemployment insurance ($6.2 billion) and. Read More.

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