JPMorgan Chase This site is brought to you by JPMorgan to help you stay on top of current happenings in the employee benefits world. Our goal is to provide strategic insights to employers that sponsor retirement, health and welfare, and compensation plans, based on ongoing developments on legislative, regulatory, and litigation fronts. http://www.jpmorgan.com/pages/jpmorgan/am/cbs/insight © 2007 JPMorgan Chase & Co. All rights reserved. en-us Business On June 17, President Bush signed into law the Heroes Earnings Assistance and Relief Tax Act (HEART Act) of 2008. This bill, originally passed in a nearly unprecedented 410-0 vote by the US House of Representatives, provides certain qualified plan and other tax benefits for members of the military on active duty (or who become disabled or die while on active duty). In this article, well discuss briefly the benefit plan issues raised by the HEART Act. Thu, 14 Aug 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159357405709&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template On July 16, 2008, the IRS released proposed regulations under Code sections 4980B, 4980D, 4980E and 4980G pertaining to health savings accounts (HSAs). The proposed regulations provide guidance in the areas of tax reporting and paying, HSA contributions, and qualified HSA distributions. In this article, we review the proposed regulations with respect to Code sections 4980B, 4980D, 4980E and 4980G. Tue, 12 Aug 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159357231615&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template Employee stock purchase plans (ESPPs) were added to the Internal Revenue Code by the Revenue Act of 1964. Since then, precious little official guidance has been available on these plans. In fact, the last update of the regulations under section 423 had been made in 1988, prior to the last amendment of section 423 by OBRA 90. In Notice 2004-55, the IRS asked whether the existing regulations should be amended. The IRS received only two comment letters, which may explain the delay by the IRS in proposing new regulations. But, now they have. In this article, well give some very basic background on ESPPs and discuss some of the key points raised in the proposed regulations. Fri, 8 Aug 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159356726433&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template The IRS published on July 17 proposed regulations providing guidance to assist corporations with the return and information statement requirements related to statutory stock options (incentive stock options under Code section 422 or employee stock purchase plans under Code section 423) under Internal Revenue Code section 6039. Prior to the law change, an employers primary reporting responsibility was to the employee. Now, similar information will be required to be provided to the IRS to ensure taxpayer compliance with the associated ordinary income tax and capital gains requirements. In this article, we review the implications of these proposed requirements. Fri, 8 Aug 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159356698205&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template On July 22, 2008, the DOL released proposed regulations under section 404(a) of ERISA revising the rules for disclosure of fee and other information to participants in directed individual account plans  plans in which participants choose from a menu of investment funds. The proposal requires disclosure of "plan-related" and "investment-related" information. In this article we review the proposal and its implications for plan administrators. Wed, 6 Aug 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159356423702&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template In 2007, the DOL finalized a new Form 5500 Schedule C (Service Provider Information), adding a requirement for detailed disclosure of fees paid directly or indirectly to plan service providers. The new requirements would generally be effective for the 2009 reporting year. On July 14, 2008, the DOL published "FAQs [frequently asked questions] About The 2009 Form 5500 Schedule C," providing further guidance on how Form 5500 fee reporting is to work. In this article we review the FAQ guidance. Wed, 6 Aug 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159356422778&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template Its the summer of 2008 and defined benefit plan sponsors have unique opportunities with regard to funding their plans. Have you thought about this? Do you know what you can accomplish by funding before September 15 has come and gone? This article should have relevance to anyone involved in financial decisions around pensions, no matter what their specific role. In the article, well review those opportunities in a way that should be relevant to you whether your plan is well-funded or not as well-funded, whether you have lots of cash available or not as much cash available. And, well discuss why, as a result of the Pension Protection Act of 2006 (PPA), this may be the best opportunity youll ever have. Fri, 1 Aug 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159356020082&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template As health care costs continue to escalate, more and more employers are turning to health improvement programs in The IRS recently released Notice 2008-59. The notice provides guidance on health savings accounts in a number of areas, including contribution limits, eligibility, and administration and maintenance fees. The notice is provided in a question and answer format covering 42 items. The following article reviews those aspects of HSAs that are not covered in other guidance. Fri, 11 Jul 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159353889524&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template In March, the Financial Accounting Standards Board (FASB) proposed a FASB Staff Position that would amend FASB Statement No. 132(R), Employers Disclosures about Pensions and Other Postretirement Benefits. In this article we review the proposal and discuss the issue of alternative asset valuation generally, with respect to both DB and DC plans. Fri, 11 Jul 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159353889078&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template The Government Accountability Office released a report titled "Private Pensions  Low Defined Contribution Plan Savings May Pose Challenges to Retirement Security, Especially for Many Low-Income Workers." In this article we review the GAO report and various policy initiatives being considered to improve 401(k) plan "adequacy." Fri, 11 Jul 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159353888150&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template In September 2007 we discussed the Wheeler v. Boeing decision, in which a federal district court rejected the IRS's application of defined benefit plan backloading or accrual rules to a "greater of" formula in a cash balance plan conversion. Since then, the IRS issued Revenue Ruling 2008-7 and has now proposed regulations providing relief from the application of its anti-backloading analysis in the case of multiple formulas. Fri, 11 Jul 2008 09:00:00 http://www.jpmorgan.com/cm/Satellite?c=JPM_Content_C&cid=1159353887086&pagename=jpmorgan/am/JPM_Content_C/Generic_Detail_Page_Template