Administration releases pension simplification proposal

Article Abstract:

The Clinton administration proposed on June 14, 1995, a simplified pension scheme for small businesses and changes to a number of the tests and requirements that qualified plans face. The National Employee Savings Trust system would allow small employers to use individual retirement accounts to provide tax-advantaged retirement benefits. The plan would require 1% or 3% contributions, depending on other plan attributes. Other proposals include establishing safe-harbor exemptions from certain qualifying tests, lifting the distribution requirement at age 70 1 2, removal of family aggregation rules and simplifying of high-income employee restrictions.

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DOL adopts voluntary pension payback program to restore delinquent participant contributions

Article Abstract:

The US Department of Labor has established a voluntary compliance program to allow pension plans that are delinquent in transmitting employee contributions to plans to restore funds and earnings without being subject to civil or criminal penalties. The program is only available to employers for whom delinquent amounts do not exceed total participant contributions for 1995. To participate, employers need to provide the Department of Labor with written notification, restore funds and earnings by Sept. 7, 1996, and notify affected participants within 90 days of application for the program.

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Clinton includes pension reform in 1997 budget proposal

Article Abstract:

Pres. Clinton has proposed a pension reform plan that would simplify regulations governing plans offered by small businesses and allow tax-exempt organizations to establish 401(k) plans. Participation in the National Employee Savings Trust would be available through employers with no more than 100 employees. Family aggregation rules would be removed, defined contribution plan participation would become portable, and rollovers would be simplified. Tougher penalties would be enacted for fraud in 401(k) plans.

Nonprofit organizations

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