2014 COMPLIANCE CALENDAR FOR CALENDAR-YEAR RETIREMENT, HEALTH AND WELFARE BENEFIT PLANS

Transcription

1 2014 COMPLIANCE CALENDAR FOR CALENDAR-YEAR RETIREMENT, HEALTH AND WELFARE BENEFIT PLANS ANDREA I. O BRIEN, ESQ. VI D. NGUYEN, ESQ. GLENN D. GUNNELS, ESQ. ISLER DARE, P.C. (703)

2 JANUARY 2014 By January 13, post Schedule SB (actuarial information on any defined benefit pension plan) on company intranet for 2012 plan year, assuming Form 5500 was filed by October 15, 2013 By January 15, fund 4 th quarterly contribution to any defined benefit pension plan for the 2013 plan year By January 31, verify retirement plan recordkeepers have provided Forms 1099-R to participants who received distributions By January 31, report value of health coverage on Form W-2 Schedule quarterly meetings of Benefits Committee through December 31 Review health/welfare plan premiums before loading them into the first Payroll file Once new deductions have been loaded into internal systems (e.g., 401(k) deferrals and health/welfare plan premiums & deductions), review after first Payroll file to make sure everything is correct Verify that contracts for all benefit providers have been signed, including insurance policies, administrative services agreements, and HIPAA business associate agreements Update intranet site with new plan documents, Summary Plan Descriptions, policies & forms Confirm with COBRA administrator that updated notices and election forms are being used to reflect new model language regarding health insurance exchange alternatives Provide information to retirement plan recordkeepers for any annual compliance questionnaires that they request

3 FEBRUARY 2014 By February 15, confirm that 401(k) plan recordkeeper has provided quarterly statements to 401(k) plan participants, which include fee disclosure information By February 28, verify retirement plan recordkeepers have filed Forms 1099-R with IRS (due date is March 31 if filing is done electronically) By February 28, file disclosure with CMS on Medicare Part D creditable coverage status (electronic filing only) By February 28, pay PBGC estimated flat-rate premium payments, if a large defined benefit pension plan (with more than 500 participants) was maintained during the prior plan year Work with retirement plan recordkeepers to coordinate 410(b) minimum coverage testing, 402(g) limit testing, 401(k) and 401(m) ADP/ACP testing, 415 limit testing and top-heavy testing for retirement plans for previous year Work with FSA/125 plan recordkeepers or brokers to perform 105(h), 125, and 129 testing for the prior year, and projected testing for the current year Have quarterly meeting of Benefits Committee to review 2013 yearend investment performance, fees, plan administration data, and plan operational issues

4 MARCH 2014 By March 15, fund all company contributions to retirement plans in order to deduct contributions (unless due date for corporate tax return is extended until September 15) By March 15, refund all corrective distributions in order to cure failed ADP/ACP tests for 401(k) plan without paying 10% penalty excise tax (although June deadline applies to plans with eligible automatic contribution arrangements) Determine changes necessary to all plans in order to reflect the Supreme Court decision on same-sex spouses For self-insured group health plans, discuss payment of transitional reinsurance program fee with third-party administrators, under new guidance permitting payment of 2014 fee in two installments (January 2015 and December 2015) By March 15, file Form 8928 to report any excise taxes attributable to noncompliance with certain group health plan requirements (COBRA; HIPAA special enrollment, portability and nondiscrimination rules; newborn and mothers health; and mental health parity), unless Form 7004 has been timely filed to extend deadline for corporate tax return to September 15 By March 31, actuary for any defined benefit pension plan should issue certified AFTAP By March 31, file RDS reconciliation (if any) with CMS for 2012 plan year (due 15 months after end of year) By March 31, provide eligible ESOP participants with notice about their rights to diversify a portion of their ESOP account

5 APRIL 2014 By April 1, verify that initial required minimum distributions have been paid by retirement plan recordkeepers for participants who turned 70-1/2 in prior year By April 15, distribute excess 402(g) deferrals under 401(k) plan By April 15, fund 1 st quarterly contributions to any defined benefit pension plan for the 2014 year By April 15, file PBGC Form 4010 (Notice of Underfunding) if AFTAP is less than 80% for the prior plan year and notice was not previously provided Schedule open enrollment planning meeting with broker/consultant to discuss potential design changes for 2015 health and welfare plans, and verify that quarterly MSP reports are being filed with CMS Begin process of updating any HIPAA Business Associate Agreements that were in place and HIPAA-compliant as of January 25, 2013, as extended compliance deadline is September 23, 2014 Begin 2013 retirement plan audits for retirement plans with more than 100 participants at beginning of 2013 plan year For ESOPs, begin annual independent appraisal process By April 30, distribute Annual Funding Notice for defined benefit pension plans with more than 100 participants with MAP-21 supplementary information By April 30, file PBGC comprehensive premium filing for small defined benefit plans (less than 100 participants) and pay 2013 flatrate and variable-rate premiums By April 30, provide Notice of Benefit Restrictions under IRC Section 436 if defined benefit pension plan s certified AFTAP as of March 31 is less than 80% and notice has not previously been provided

6 MAY 2014 By May 15, verify 401(k) plan recordkeeper has provided quarterly statements under 401(k) plan, including fee disclosure information Have quarterly meeting of Benefits Committee to review investment performance, fees, plan administration data, and plan operational issues for quarter ending March 31

7 JUNE 2014 By June 29, process any ESOP diversification elections that were made by March 31 By June 30, process any corrective distributions for a failed ADP/ACP test from 401(k) plans with eligible automatic contribution arrangements, in order to avoid paying 10% excise tax Obtain insurance renewals from all vendors Work with retirement plan vendor to provide modeling or projections of cost impact of any design changes (e.g. level of company contributions; safe harbor, auto enrollment, or auto escalation features; varying employee groups, etc.)

8 JULY 2014 By July 15, pay 2 nd quarterly contribution to defined benefit pension plan for 2014 plan year By July 29, distribute Summaries of Material Modifications or revised Summary Plan Descriptions for any material changes made to calendar year plans that were adopted and became effective in 2013 Finalize health and welfare plan design for 2015 To the extent required by any Benefits Committee charter document, prepare annual report to Compensation Committee or Board of Directors By July 31, file Forms 5500 and 8955-SSA for all retirement plans, and for all health and welfare plans with more than 100 participants (or file Form 5558 extending date to October 15) By July 31, provide notice to any terminated vested employee reported on Form 8955-SSA describing the amount of his/her vested benefit (unless Form 5558 has been filed, in which case deadline for notice is extended until October 15) By July 31, file Form 5330 to report any excise taxes related to employee benefit plans, such as late remittance of participant contributions, excess 401(k) plan contributions, etc. By July 31, file IRS Form 720 and pay PCOR fee ($2 per covered life for 2014, for health plan year ending December 31, 2013) By July 31, distribute Annual Funding Notice for defined benefit pension plans with less than 100 participants, if Form 5558 was not filed to extend this deadline to October 15 By July 31, distribute annual benefit statement for non-participant-directed account plans (such as ESOPs), unless Form 5558 has been filed to extend deadline for Form 5500 until October 15

9 AUGUST 2014 By August 15, verify that 401(k) plan recordkeeper has distributed quarterly statements to 401(k) plan participants, including fee disclosure information Have quarterly meeting of Benefits Committee to review investment performance, fees, plan administration data, and plan operational issues for quarter ending June 30 Review ERISA fidelity bond coverage and fiduciary liability insurance coverage levels with Risk Management and renew or change, as appropriate Work with retirement plan recordkeepers and auditors on Forms 5500; work with any vendors for Forms 5500 due on welfare plans Schedule 401(k) educational seminars to be held in the Fall

10 SEPTEMBER 2014 By September 15, fund all employer contributions to retirement plans so that deductions can be taken on corporate tax return that is being filed on extension (for calendar fiscal year employers) By September 15, file Form 8928 reporting any excise taxes under COBRA, HIPAA, health reform, etc. (assuming corporate tax return otherwise due on March 15 has been extended to September 15) By September 23, have updated HIPAA business associate agreements executed with all vendors (reflecting regulations that were finalized in 2013) By September 30, distribute Summary Annual Reports for calendar year plans, unless extension for Form 5500 has been filed (permitting distribution by December 15) Finalize budget for next plan year and obtain approvals from Compensation Committee or Board of Directors as appropriate for benefit plan design changes Finalize any retirement plan design changes for 2015, so that they can be incorporated into any annual notices that will be distributed between October 1-November 30 Conduct 401(k) educational seminars for employees Confirm that fee disclosure notice has been provided or updated within the last 12 months (required annually, but otherwise no specific date) By September 30, actuary must certify AFTAP for defined benefit pension plan

11 OCTOBER 2014 By October 15, distribute notice of Medicare Part D creditable coverage (unless that has already been provided in open enrollment materials) By October 15, file Forms 5500 for retirement plans, and for any health and welfare plans with more than 100 participants (assuming extensions were filed by July 31); if plan is using QSLOB testing, file Form 5310-A as notice of QSLOB election By October 15, assuming Form 5558 was filed for retirement plans, file Form SSA identifying participants with deferred vested benefits under retirement plans; provide notice to terminated vested employees reported on the Form 8955-SSA about the amount of their vested benefits By October 15, pay 3 rd quarterly contribution to defined benefit pension plan for 2014 plan year By October 15, PBGC comprehensive premium filing (and premiums) due for defined benefit pension plans with 100 or more participants; variable rate premiums and reconciliation of estimated flat-rate premiums are due for defined benefit plans with more than 500 participants Finalize and distribute open enrollment communications and SBCs. Note: Open enrollment materials for any non-grandfathered plan should include: Medicare Part D notice COBRA general notice HIPAA notice of privacy practices WHCRA notice CHIP notice ERRP notice Michelle s Law (if student status is used to determine eligibility for any purpose) ACA notice regarding choice of providers Working with 401(k) plan recordkeeper, begin preparations of QDIA, Safe Harbor, and/or Auto Enrollment Notices (to be distributed by November 30) ESOP Trustees should meet, review, and accept annual valuation report By October 15, if Form 5558 was filed for a small defined benefit pension plan (less than 100 participants), distribute Annual Funding Notice By October 15, distribute annual benefit statement for non-participant-directed account plans (such as ESOPs), assuming Form 5500 was extended to October 15; also issue distribution forms for terminated participants By October 15, adopt a retroactive amendment to correct Section 410(b) minimum coverage or Section 401(a)(4) nondiscrimination failure for By October 30, provide a Notice of Benefit Restrictions if the certified AFTAP as of September 30 is less than 80% and the notice was not previously provided

12 NOVEMBER 2014 By November 15, verify that 401(k) plan recordkeeper has distributed quarterly statements to 401(k) plan participants, including fee disclosure information By November 15, report to HHS due on number of covered lives, for calculation of transitional reinsurance fee that is due by December 15, 2014 [under proposed rules, to be finalized, the fee may be paid in two installments in 2015] Open Enrollment (dates TBD). Have quarterly meeting of Benefits Committee to review investment performance, fees, plan administration data, and plan operational issues for quarter ending September 30 By November 30, prepare and distribute Notices of QDIA, Safe Harbor, and/or Auto Enrollment features of 401(k) plan

13 DECEMBER 2014 By December 15, Summary Annual Reports for retirement plans, and for health and welfare plans with more than 100 participants, must be received by each participant, beneficiary in payment status and any alternate payee (including mailings to retirees and former employees), assuming the Forms 5500 were on extension and were filed by October 15. Also post the Summary Annual Reports on the HR intranet and send electronic notification to staff By December 15, pay the first transitional reinsurance program fee (although proposed regulations may be finalized to defer payment in two installments in 2015) Remind employees and participants to review and elect any over-50 catch-up contributions, effective January 1 Notify staff regarding increases in the regular and catch-up contribution limits, effective January 1 Work with Finance & Payroll to set up internal systems to reflect retirement plan contribution and compensation limits for following year By December 31, adopt any interim amendments to calendar year plans that have taken effect during the year (and any amendments required by legislation or regulations) By December 31, adopt formal amendment to any health FSA plan to reflect (i) reduction in employee contributions to $2,500 that became effective January 1, 2013, (ii) any elimination of grace period, and (iii) any adoption of the permissive $500 carryover rule for 2013 or beyond By December 31, annual required minimum distributions from retirement plans are due to be paid by retirement plan recordkeepers By December 31, process corrective distributions for failed 2013 ADP/ACP test with 10% excise tax By December 31, provide participants in any defined benefit pension plan with an annual notice about the availability of pension benefit statements