News & Information

 

FEATURED PRODUCT

5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.

Learn More »

CCH® PENSION AND BENEFITS — 7/11/08

TE/GE Advisory Groups recommend changes to EPCRS, government plans

The IRS’s Advisory Committee on Tax Exempt and Government Entities (ACT) met in open session on June 11, 2008 and made suggestions that could affect the administration and correction of pension plans under TE/GE’s regulatory umbrella.

Proposed changes to EPCRS

The Employee Plans (EP) group made 15 recommendations to improve the Employee Plans Compliance Resolution System (EPCRS), including a revised fee structure, an extension of the self-correction period by a year, and the use of a notice of intent to correct that would trigger audit protection while the plan prepared its submission of violations.

Michael Julianelle, director of Employee Plans, responded that EP would take quick action on several of the 15 recommendations, including audit protection, the use of a standard application form, improving customer education and outreach, and extending EPCRS to 403(b) plans. Other ideas, such as fee revision, would get serious consideration but had some hurdles to overcome. A few ideas, such as the use of a Department of Labor calculator and the expansion of EPCRS to Code Sec. 457(b) plans, faced higher hurdles before EP accepted them.

FSLG group suggests pre-approval mechanism for government plans

Julian Regan of Fidelity Investments, representing ACT’s Federal, State and Local Government (FSLG) group recommended that the IRS devise a pre-approval mechanism for more types of plans maintained by governments, including plans governed by Code Sec. 401(a), Code Sec. 401(k) , Code Sec. 403(b), and Code Sec. 457(b). He noted that the IRS was already looking at this approach for 403(b) plans. The group also recommended enhanced self-correction mechanisms for 403(b) plans and 457 deferred compensation plans, development of a multiplan administration guide, and improved partnerships with governments and government trade groups.