Regulatory, Legislative Rules May Impact Your Employee Benefit Plan
11/11/2009
Regulatory and legislative changes may impact the operation and qualification of your employee benefit plans. The more significant issues include:
- Partial Plan Terminations: The current economic crisis has led to workforce reductions and significant changes in the operation of employee benefit programs, including special vesting rules related to partial plan terminations.
- Increased Pension Funding Requirements: The Pension Protection Act of 2006 and the stock market downturn have had a significant impact on plan funding requirements, but companies must still meet actuarial requirements for minimum annual contributions.
- Timely Remittance of Participant Contributions: The Department of Labor has specific guidelines governing the timeliness of depositing participant contributions into plans, including the requirement to deposit these funds into the employee's account as soon as the funds can be segregated.
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