PBGC grants small employers temporary relief from reporting missed quarterly contributions for 1997

Article Abstract:

The US Pension Benefit Guaranty Corp. has offered small employers relief from the new reportable events regulations in its Technical Update 97-4. The relief, available in 1997, is a response to the difficulty that many small employers have in making their quarterly contributions in a timely manner. The delays are often a result of the difficulties they have in making actuarial valuations of plans subject to widely varying required contributions. The relief is available on defined benefit plans with less than 100 participants, or 500 participants in certain circumstances.

Public Finance Activities, Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Pension & Benefit Regulation, Pension Benefit Guaranty Corp, United States, Small business, Pensions

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Taxpayers prevail in small plan audit cases

Article Abstract:

Taxpayers prevailed in two cases involving audits of small employer pension plans. The issues were whether the pre- and post-retirement interest rate assumptions and retirement age assumptions were unduly low, the reasonableness of the load charges and that of the pre-retirement mortality assumptions. Expert actuaries provided much of the evidence on reasonable interest rate assumptions. In both Vincent & Elkins v Commissioner and Wachtell, Lipton, Rosen & Katz v Commissioner, the court agreed with law firm contentions that all of the above factors were reasonable.

Law firms

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DOL issues proposed PTE on payment by a party-in-interest of plan legal expenses and repayment thereof

Article Abstract:

The Department of Labor gave J.J. Johnson and Associates' Employees' Profit Sharing Trust a prohibited transaction exemption (PTE), permitting the company to cover the trust's legal expenses from plan litigation for fiduciary violations. The company wanted to do this since the trust had been terminated before the litigation and expected to be reimbursed if damages were obtained. The PTE freed the plan from ERISA section 406 restrictions on extending credit between an interested party and a pension trust.

Laws, regulations and rules, Conflict of interests (Agency), Conflicts of interest

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