6/2 Deadline To Claim Special Penalty Relief Available for Late Returns Filings By Certain Small Retirement Plans

May 6, 2015

June 2, 2015 is the deadline for small employers sponsoring retirement plans who failed to meet the Internal Revenue Code’s employee benefit plan Form 5500 reporting requirements to claim the penalty relief available under the one-year temporary pilot program announced by the Internal Revenue Service (IRS) on June 2, 2014 to help qualifying businesses that may violated the rules because they were unaware of the reporting requirements.

All employee benefit plan sponsors and administrators should make understanding and arranging for timely preparation and filing of Form 5500s and other returns and other reports and disclosures required by the Code and other laws like the Employee Retirement Income Security Act (ERISA) a priority.

Under the Internal Revenue Code, plan administrators and sponsors of retirement plans who fail to file required annual returns, can face stiff penalties – up to $15,000 per return. Where the plan also is subject to a Form 5500 filing requirement under ERISA, additional penalties also can apply for late or nonfiling of the required form.

As part of their efforts to outreach to small and other employer plan administrators and sponsors, both the IRS and Department of Labor are offering voluntary compliance programs to encourage plan sponsors and administrators to voluntarily come into compliance with these requirements who previously have failed to file required Form 5500s. The pilot program announced June 2, 2014 and scheduled to close June 2, 2015 is an example of one of those programs. By filing late returns by June 2, eligible filers filing under the program can avoid the potentially significant penalities that the IRS otherwise might impose for non- or late filing of the required returns.

This program is generally open to certain small business (owner-spouse) plans and plans of business partnerships (together, “one-participant plans”) and certain foreign plans. Those who have already been assessed a penalty for late filings are not eligible for this program.

When considering making a filing under the IRS pilot program, a plan sponsor or plan administrator also should evaluate whether there also are non-filing or late filing exposures arising under the Form 5500 filing requirements of ERISA that may need resolution. If so, consideration should be given also to file the return under the Department of Labor’s Voluntary Compliance Resolution Program for late filers.

 For  Advice, Representation, Training & Other Resources

If you need help responding to these new or other workforce, benefits and compensation, performance and risk management, compliance, enforcement or management concerns, help updating or defending your workforce or employee benefit policies or practices, or other related assistance, the author of this update, attorney Cynthia Marcotte Stamer may be able to help.

Recognized as a “Top” attorney in employee benefits, labor and employment and health care law, Ms. Stamer is a practicing attorney Board Certified in Labor & Employment Law by the Texas Board of Legal Specialization, author, pubic speaker, management policy advocate and thought leader with more than 25 years’ experience advising government contractors and other employers, their management, benefit plans and plan fiduciaries, vendors and service providers and others about OFCCP, EEOC, and other employment discrimination, government contracting compliance, and other workforce and operational performance, compliance, risk management, compensation, and benefits matters. As a part of this involvement, Ms. Stamer throughout her career specifically has advised and represented a broad range of employers across the U.S., their employee benefit plans and plan fiduciaries, insurers, health care providers and others about the implications of DOMA and other rules relating to rights and expectations of LBGT community members and others in federally protected classes under Federal and state employment, tax, discrimination, employee benefits, health care and other laws.

In addition to her extensive client work Ms. Stamer also is a widely published author, management policy advocate and thought leader, and management policy advocate on these and other workforce and related matters who shares her experience and leadership in a wide range of contexts.  A current or former author and advisory board member of HR.com, Insurance Thought Leadership, SHRM, BNA and several other the prominent publications, Past Chair of the ABA RPTE Employee Benefit & Other Compensation Arrangements Group, Co-Chair and Past Chair of the ABA RPTE Welfare Plan Committee, Vice Chair of the ABA TIPS Employee Benefit Plans Committee, Vice President of the North Texas Health Care Compliance Professionals Association, Past Chair of the ABA Health Law Section Managed Care & Insurance Section, former President of the Richardson Development Center Board of Directors, and the former Board Compliance Chair of the National Kidney Foundation of North Texas, An American College of Employee Benefit Counsel, American Bar Association (ABA) and State Bar of Texas Fellow, Martindale Hubble Premier AV Rated (the highest), Ms. Stamer publishes and speaks extensively on these and other staffing and human resources, compensation and benefits, technology, health care, privacy, public policy, and other operations and risk management concerns.  Her publications and insights appear in the ABA and other professional publications, HR.com, SHRM, Insurance Thought Leadership, Health Care Compliance Association, Atlantic Information Service, Bureau of National Affairs, World At Work, The Wall Street Journal, Business Insurance, the Dallas Morning News, Modern Health Care, Managed Healthcare, Health Leaders, and a many other national and local publications.

You can review other recent human resources, employee benefits and internal controls publications and resources and additional information about the employment, employee benefits and other experience of the Cynthia Marcotte Stamer, PC here. If you or someone else you know would like to receive future updates about developments on these and other concerns, please be sure that we have your current contact information – including your preferred e-mail – by creating or updating your profile www.cynthiastamer.com or by registering to participate in the distribution of these and other updates on our HR & Employee Benefits Update here including:

                                                        About Solutions Law Press

Solutions Law Press, Inc. provides business risk management, legal compliance, management effectiveness and other resources, training and education on human resources, employee benefits, data security and privacy, insurance, health care and other key compliance, risk management, internal controls and operational concerns. If you find this of interest, you also be interested reviewing some of our other Solutions Law Press resources at www.solutionslawpress.com.

If you or someone else you know would like to receive future updates about developments on these and other concerns, please be sure that we have your current contact information – including your preferred e-mail – by creating or updating your profile at here or e-mailing this information here.

©2015 Cynthia Marcotte Stamer. Non-exclusive right to republish granted to Solutions Law Press. All other rights reserved


IRS FAQ Addresses Determination Letter Program As Applied To Multiple Employer Plans

May 6, 2015

Multiple employer plans, -i.e., a plan maintained by two or more employers that don’t have sufficient overlapping ownership to be considered a single employer for purposes of the Internal Revenue Code (Code) or other laws-can be attractive options for some plan sponsors to minimize their individual costs for offering qualified deferred compensation or other employee benefit plans. Sponsors, fiduciaries and participating employers involved with these arrangements need to keep in mind, however, that these arrangements also often trigger special legal rules, exposures and operational challenges under the Internal Revenue Code (Code), the Employee Retirement Income Security Act (ERISA) and other laws.

One of these issues can be the scope of protection that a determination letter issued to a plan sponsor of a multiple employer plan. To help clarify some common questions about the treatment of multiple employer plans in its determination letter program, the Internal Revenue Service (IRS) on March 30, 2015 published a new set of “Frequently Asked Questions” (FAQs) that provide some insights about the IRS’ current position on some of these issues, subject to the understanding that IRS does not consider its answers to frequently asked questions as appropriate for citation as legal authority. Subject to this disclaimer, the new FAQ states:

Does each adopting employer have to come in for an individual determination letter?

No, it’s not necessary for all adopting employers to apply for a determination letter on Form 5300, Application for Determination for Employee Benefit Plan. The sponsors of the plan have two choices:

  1. Submit just for a determination letter on the plan; or
  2. Submit for letter on the plan and a letter for each employer maintaining the plan who wants an individual letter. See Revenue Procedure 2015-6, section 10.

Are the adopting employers required to give Notice to Interested Parties if they are not coming in for individual letters?

Yes, each employer must provide notice to interested parties. The rule permitting one consolidated determination letter for a multiple employer plan does not change the “Notice to Interested Parties” requirement.

Do the employers maintaining the plan have reliance on the determination letter issued to the plan?

Yes. Revenue Procedure 2015-6, section 10, states: “An employer maintaining a multiple employer plan can rely on a favorable determination letter issued for the plan except with respect to the requirements of §§ 401(a)(4), 401(a)(26), 401(l), 410(b) and 414(s), and, if the employer maintains or has ever maintained another plan, §§ 415 and 416.”

Is a volume submitter plan’s submission cycle affected if it changes to a multiple-employer plan?

No, conversion of a volume submitter (VS) plan to a multiple-employer plan does not take the plan off of the 6-year remedial amendment cycle. A VS plan may be designed to be used as either a single-employer or as a multiple-employer plan. Conversion occurs when the adopting employer decides to allow an unrelated employer to also adopt its VS plan. Even if the employer had to modify the VS plan to allow it to be used as a multiple-employer plan, this would not remove the employer from the 6-year cycle because a multiple employer plan is not an impermissible plan type for a VS plan.

What form is used to request a determination letter for a VS plan that was modified to be a multiple-employer plan?

An employer requesting a determination letter for a VS plan that was modified for use as a multiple-employer plan should file Form 5300 (not Form 5307). The Form 5300 has to be used because the Form 5307 does not accommodate filings by multiple- employer plans. If the employer has not modified the VS plan at all, for example, because the VS plan allows for use as either a single-employer or as a multiple-employer plan, the employer has reliance on the VS advisory letter issued to the document provider and should not file for its own determination letter.

 For  Advice, Representation, Training & Other Resources

If you need help responding to these new or other workforce, benefits and compensation, performance and risk management, compliance, enforcement or management concerns, help updating or defending your workforce or employee benefit policies or practices, or other related assistance, the author of this update, attorney Cynthia Marcotte Stamer may be able to help.

Recognized as a “Top” attorney in employee benefits, labor and employment and health care law, Ms. Stamer is a practicing attorney Board Certified in Labor & Employment Law by the Texas Board of Legal Specialization, author, pubic speaker,management policy advocate and thought leader with more than 25 years’ experience advising government contractors and other employers, their management, benefit plans and plan fiduciaries, vendors and service providers and others about OFCCP, EEOC, and other employment discrimination, government contracting compliance, and other workforce and operational performance, compliance, risk management, compensation, and benefits matters. As a part of this involvement, Ms. Stamer throughout her career specifically has advised and represented a broad range of employers across the U.S., their employee benefit plans and plan fiduciaries, insurers, health care providers and others about the implications of DOMA and other rules relating to rights and expectations of LBGT community members and others in federally protected classes under Federal and state employment, tax, discrimination, employee benefits, health care and other laws.

In addition to her extensive client work Ms. Stamer also is a widely published author, management policy advocate and thought leader, and management policy advocate on these and other workforce and related matters who shares her experience and leadership in a wide range of contexts.  A current or former author and advisory board member of HR.com, Insurance Thought Leadership, SHRM, BNA and several other the prominent publications, Past Chair of the ABA RPTE Employee Benefit & Other Compensation Arrangements Group, Co-Chair and Past Chair of the ABA RPTE Welfare Plan Committee, Vice Chair of the ABA TIPS Employee Benefit Plans Committee, Vice President of the North Texas Health Care Compliance Professionals Association, Past Chair of the ABA Health Law Section Managed Care & Insurance Section, former President of the Richardson Development Center Board of Directors, and the former Board Compliance Chair of the National Kidney Foundation of North Texas, An American College of Employee Benefit Counsel, American Bar Association (ABA) and State Bar of Texas Fellow, Martindale Hubble Premier AV Rated (the highest), Ms. Stamer publishes and speaks extensively on these and other staffing and human resources, compensation and benefits, technology, health care, privacy, public policy, and other operations and risk management concerns.  Her publications and insights appear in the ABA and other professional publications, HR.com, SHRM, Insurance Thought Leadership, Health Care Compliance Association, Atlantic Information Service, Bureau of National Affairs, World At Work, The Wall Street Journal, Business Insurance, the Dallas Morning News, Modern Health Care, Managed Healthcare, Health Leaders, and a many other national and local publications.

You can review other recent human resources, employee benefits and internal controls publications and resources and additional information about the employment, employee benefits and other experience of the Cynthia Marcotte Stamer, PC here. If you or someone else you know would like to receive future updates about developments on these and other concerns, please be sure that we have your current contact information – including your preferred e-mail – by creating or updating your profile www.cynthiastamer.com or by registering to participate in the distribution of these and other updates on our HR & Employee Benefits Update here including:

About Solutions Law Press

Solutions Law Press, Inc. provides business risk management, legal compliance, management effectiveness and other resources, training and education on human resources, employee benefits, data security and privacy, insurance, health care and other key compliance, risk management, internal controls and operational concerns. If you find this of interest, you also be interested reviewing some of our other Solutions Law Press resources at www.solutionslawpress.com.

If you or someone else you know would like to receive future updates about developments on these and other concerns, please be sure that we have your current contact information – including your preferred e-mail – by creating or updating your profile at here or e-mailing this information here.

©2015 Cynthia Marcotte Stamer. Non-exclusive right to republish granted to Solutions Law Press. All other rights reserved.


5/11 Deadline To Comment On Proposed Rule On Charter School Plan As Government Plan

May 6, 2015

Monday, May 11, 2015 is the deadline to submit comments about proposed regulations which would address the conditions under which a State or local retirement system that covers employees of a public charter school will qualify as a “government plan” under Internal Revenue Code (Code) Section 414(d). The Department of Treasury and Internal Revenue invited the comments on its proposed regulation in Notice 2015-7.  Interested organizations concerned about the treatment of such arrangements should review the proposed regulations and comment as soon as possible and by May 11.

 For  Advice, Representation, Training & Other Resources

If you need help responding to these new or other workforce, benefits and compensation, performance and risk management, compliance, enforcement or management concerns, help updating or defending your workforce or employee benefit policies or practices, or other related assistance, the author of this update, attorney Cynthia Marcotte Stamer may be able to help.

Recognized as a “Top” attorney in employee benefits, labor and employment and health care law, Ms. Stamer is a practicing attorney Board Certified in Labor & Employment Law by the Texas Board of Legal Specialization, author, pubic speaker,management policy advocate and thought leader with more than 25 years’ experience advising government contractors and other employers, their management, benefit plans and plan fiduciaries, vendors and service providers and others about OFCCP, EEOC, and other employment discrimination, government contracting compliance, and other workforce and operational performance, compliance, risk management, compensation, and benefits matters. As a part of this involvement, Ms. Stamer throughout her career specifically has advised and represented a broad range of employers across the U.S., their employee benefit plans and plan fiduciaries, insurers, health care providers and others about the implications of DOMA and other rules relating to rights and expectations of LBGT community members and others in federally protected classes under Federal and state employment, tax, discrimination, employee benefits, health care and other laws.

In addition to her extensive client work Ms. Stamer also is a widely published author, management policy advocate and thought leader, and management policy advocate on these and other workforce and related matters who shares her experience and leadership in a wide range of contexts.  A current or former author and advisory board member of HR.com, Insurance Thought Leadership, SHRM, BNA and several other the prominent publications, Past Chair of the ABA RPTE Employee Benefit & Other Compensation Arrangements Group, Co-Chair and Past Chair of the ABA RPTE Welfare Plan Committee, Vice Chair of the ABA TIPS Employee Benefit Plans Committee, Vice President of the North Texas Health Care Compliance Professionals Association, Past Chair of the ABA Health Law Section Managed Care & Insurance Section, former President of the Richardson Development Center Board of Directors, and the former Board Compliance Chair of the National Kidney Foundation of North Texas, An American College of Employee Benefit Counsel, American Bar Association (ABA) and State Bar of Texas Fellow, Martindale Hubble Premier AV Rated (the highest), Ms. Stamer publishes and speaks extensively on these and other staffing and human resources, compensation and benefits, technology, health care, privacy, public policy, and other operations and risk management concerns.  Her publications and insights appear in the ABA and other professional publications, HR.com, SHRM, Insurance Thought Leadership, Health Care Compliance Association, Atlantic Information Service, Bureau of National Affairs, World At Work, The Wall Street Journal, Business Insurance, the Dallas Morning News, Modern Health Care, Managed Healthcare, Health Leaders, and a many other national and local publications.

You can review other recent human resources, employee benefits and internal controls publications and resources and additional information about the employment, employee benefits and other experience of the Cynthia Marcotte Stamer, PC here. If you or someone else you know would like to receive future updates about developments on these and other concerns, please be sure that we have your current contact information – including your preferred e-mail – by creating or updating your profile www.cynthiastamer.com or by registering to participate in the distribution of these and other updates on our HR & Employee Benefits Update here including:

About Solutions Law Press

Solutions Law Press, Inc. provides business risk management, legal compliance, management effectiveness and other resources, training and education on human resources, employee benefits, data security and privacy, insurance, health care and other key compliance, risk management, internal controls and operational concerns. If you find this of interest, you also be interested reviewing some of our other Solutions Law Press resources at www.solutionslawpress.com.

If you or someone else you know would like to receive future updates about developments on these and other concerns, please be sure that we have your current contact information – including your preferred e-mail – by creating or updating your profile at here or e-mailing this information here.

©2015 Cynthia Marcotte Stamer. Non-exclusive right to republish granted to Solutions Law Press. All other rights reserved.