End of the Year Retirement Reminders

A quick glimpse at important reminders for the end of the year from Lockton Retirement Services. (Download the original here >>11.27.12 EOY UPDATED)

Plan Amendments

  • Governmental Plans
    If a governmental plan has not yet been amended for the Worker, Retiree & Employer Recovery Act of 2008 (WRERA[the required minimum distribution waivers and non-spouse beneficiary rollovers] or the Heroes Earnings Assistance & Relief Tax Act of 2008 (HEART[survivor death benefits and differential wage payments related to qualified military service], the deadline to adopt the amendments is the end of the first plan year beginning on or after January 1, 2012 (December 31, 2012, for calendar year plans).
  • DB Plan Amendments
    Amendments for Moving Ahead for Progress in the 21st Century (MAP-21) – MAP-21 may require a plan amendment in 2012 if you adopted a PPA amendment that named the segment rates to be used in determining funded percentages as the MAP-21 rates for 2012. If this amendment is necessary for 2012, it must be adopted by December 31, 2012.
  • Discretionary Amendments
    Discretionary amendments must be adopted by the end of the plan year in which they are implemented (December 31 for calendar year plans). In addition, discretionary design changes for 2013 that result in a reduction of benefits may need to be adopted in 2012 to avoid a prohibited cutback of accrued benefits.
  • Puerto Rican Plans
    Plans covering Puerto Rican workers must be amended or restated to comply with the qualification provisions of the 2011 Puerto Rican Internal Revenue Code on or before the first plan year beginning on or after January 1, 2012 (December 31, 2012, for calendar year plans).

Plan Restatements and Determination Letters for Cycle B Filers
IRS procedures require each individually designed plan that is maintained by an employer with an Employer Identification Number (EIN) ending in 2 or 7 (or all individually designed multiple employer plans regardless of the EIN) to file in Cycle B and to file a restated plan by January 31, 2013. The deadline for requesting a determination letter with respect to a restated plan in Cycle B is also January 31, 2013.
Participant Notices

  • Safe Harbor Plan Notice – Annual safe harbor notices must be provided to participants by December 1 of each year for calendar year plans.
  • Automatic Enrollment – Required annual notices for automatic enrollment arrangements must be provided to participants by December 1 of each year for calendar year plans.
  • QDIA Notices – Participant notices for plan sponsors who desire safe harbor relief from fiduciary liability for qualified default investment alternatives must be provided by December 1 of each year for calendar year plans.
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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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