SECURE Act

DOL Issues Proposed Regulations on Pooled Plan Provider Registration Requirements

The Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) has issued highly-anticipated proposed regulations on registration requirements for entities that will function as “pooled plan providers” for retirement plans that will be known as pooled employer plans, or PEPs.

PEPs were created by the Setting Every Community Up for Retirement Enhancement (SECURE) Act, signed into law in December 2019. They will resemble the existing retirement plan structure, known as multiple employer plans, or MEPs, in which multiple employers participate in a common plan, and are treated as a single plan for certain important purposes, such as filing a single Form 5500, Annual Return/Report of Employee Benefit Plan.

PEPs are expected to differ from MEPs in being less likely to have a common interest or owner among participating employers. In a PEP administration, a pooled plan provider (PPP) is the named fiduciary, and must register with the DOL. PEPs can be established for plan years beginning in 2021.

Comments on these proposed regulations will be due 30 days from their upcoming publication in the Federal Register. In addition to this guidance, the EBSA has also issued a news release and fact sheet.

The EBSA news release notes that the proposed regulations include a mock-up of the required registration form, as well its instructions, and also notes that “the registration process [will] involve an initial registration, supplemental filings regarding specific reportable events, and a final filing after the … plan has been terminated and ceased operations.”


DOL Releases Lifetime Income Disclosure Rule

The Department of Labor (DOL) today announced an interim final rule that prescribes how retirement plans are to provide lifetime income information to give savers a realistic illustration of how much monthly retirement income they could purchase with their account balance. Included in the rule is model language that may be used for these explanations, as well as liability relief for fiduciaries that use the model language and assumptions provided in the rule.

This guidance is in support of a provision of the Setting Every Community Up for Retirement Enhancement (SECURE) Act that requires a participant’s accrued benefit to be reflected on her benefit statement as an estimated lifetime stream of payments. It will be effective 12 months after the date of its publication in the Federal Register.


More IRS Guidance on Funding Single Employer DB Plans, Distribution Notices

The IRS released two Notices providing additional guidance relative to certain provisions under the Coronavirus Aid, Relief, and Economic Security (CARES) and Setting Every Community Up for Retirement Enhancement (SECURE) Acts.

Notice 2020-61 provides guidance on rules related to funding of single employer defined benefit pensions plans and related benefit limitations. The CARES Act extended the deadline for minimum required contributions otherwise due during calendar year 2020 to January 1, 2021. Notice 2020-61 provides details and a lengthy Q&A.

Notice 2020-62 modifies safe harbor explanations (previously issued in Notice 2018-74) that may be used to satisfy distribution notice requirements under Internal Revenue Code Section 402(f). These changes are necessary relative to recent distribution provisions established under the SECURE Act pertaining to qualified birth or adoption distributions and age 72 required beginning date for required minimum distributions


SECURE Act Video Series: Disaster Tax Relief

Ascensus is excited to present the SECURE Act Video Series. This multi-video series provides a snapshot of retirement-related SECURE Act provisions, included in the Further Consolidated Appropriations Act, 2020.

For more coverage from our experts on the SECURE Act and its implications, check out our latest news.


SECURE Act Video Series: Beneficiary Option Changes

Ascensus is excited to present the SECURE Act Video Series. This multi-video series will provide a snapshot of retirement-related SECURE Act provisions, included in the Further Consolidated Appropriations Act, 2020.

For more coverage from our experts on the SECURE Act and its implications, check out our latest news.

For more coverage from our experts on the SECURE Act and its implications, check out our latest news.