IRS grants relief to employers attempting to comply with notice requirement for SIMPLE plans adopted effective January 1, 1997

Article Abstract:

The IRS has issued relief to employers planning to begin SIMPLE pension plans on January 1, 1997, that will be unable to satisfy the 60-day continuous election period requirement. Even if employees begin making salary reduction contributions at the beginning of the year, the continuous 60-day period need not be completed by then. The 60-day period may begin any time from November 2, 1996, to January 1, 1996. SIMPLE plans scheduled to commence after January 1, 1996, will not be affected by this announcement.

Compensation and benefits, Small business, Simplified employee pensions

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Senate tax cut package includes provision limiting 401(k) plan investments in employer securities

Article Abstract:

A Senate amendment in its 1998 tax reconciliation bill imposes limits on the degree to which employers can require employees to invest in employer securities through their 401k plans. The 10% ERISA limit would apply to 401(k) plans under this change. An amortization amendment in the bill would change defined benefit pension plans' full funding limit.

Defined benefit plans

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Supreme Court upholds application of California notice-prejudice law to insured ERISA benefit claims

Article Abstract:

The US Supreme Court in UNUM Life Insurance Co. of America v. Ward held that ERISA did not preempt a California law requiring actual prejudice before insurers could deny disability benefit claims untimely filed. The court held that the law was a regulation of insurance and was not preempted under ERISA section 514(b)(2).

United States, States, Direct Health and Medical Insurance Carriers, Surety insurance, Income Loss Insurance, Cases, Remedies, Employee benefits, Disability insurance, Exclusive and concurrent legislative powers, Preemption (Legislative power), Insurance law

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