The IRS has provided information about the replacement of Schedule SSA (Form 5500) with Form 8955-SSA for the 2009 plan year returns.

In the July 2010 Special Edition of the IRS Employee Plans News and Form 5500 Corner, the IRS has provided information about the replacement form for Schedule SSA (Form 5500), which was eliminated beginning with returns for the 2009 plan year. Form 8955-SSA (Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits) must be filed with the IRS and not through the EFAST2 filing system. The IRS explains that plan administrators are not required to file the new form for the 2009 plan year and subsequent years until guidance is issued by the IRS. The IRS states that the guidance will provide a special due date, which is expected to occur in 2011, for the 2009 Form 8955-SSA.

After the new form and instructions become available for filing, the IRS will provide a reasonable amount of time to complete and file the form. The IRS notes that the information reported on the new form will be similar to the information that was reported on Schedule SSA. The IRS cautions that the special due date for the 2009 Form 8955-SSA will not affect the filing deadline for the applicable 2009 Form 5500 or Form 5500-SF.

EBSA has announced that it has issued final regulations clarifying certain issues relating to the timing and order of QDROs, under provisions of the Pension Protection Act.

The rule is being issued under the Pension Protection Act of 2006, which requires the Labor Department to issue regulations clarifying that a domestic relations order otherwise meeting ERISA's QDRO requirements would not fail to be treated as a QDRO solely because of when it is issued or because it is issued after, or revises, another domestic relations order. The rule includes examples to address various circumstances involving the timing of a domestic relations order.

"Qualifying and administering domestic relations orders sometimes can be a difficult process. This rule will provide more clarity and make compliance easier for plan administrators so that plan participants and beneficiaries actually receive their benefits as ordered," said Assistant Secretary of Labor for Employee Benefits Security Administration Phyllis C. Borzi.

The regulation is published in the June 10, 2010, edition of the Federal Register. For more information about EBSA, please visit http://www.dol.gov/ebsa/ or the Labor Department website at http://www.dol.gov/.

Key Action: Publication - Fiduciary Checklist
The Department's EBSA plans to publish a compliance assistance checklist in Spring 2010. This guidance will assist plan sponsors in their evaluation and selection of target date funds as plan investment options and investment choices.
Key Concern and Issues to be Addressed
The popularity of target date funds in 401(k)-type plans is growing. However, target date funds are not uniformly-designed investment products. Recent attention has focused on the importance of understanding the unique characteristics that distinguish target date funds from other types of investments, the differences among the various target date funds available, and how these differences can affect the retirement savings of employees. The Department anticipates that its guidance will assist plan fiduciaries in evaluating and selecting from the different target date funds that are available.
Background
Under the Employee Retirement Income Security Act (ERISA), plan fiduciaries responsible for selecting plan investment options must act prudently and solely in the interest of the plan's participants and beneficiaries. In 2008, the Department's ERISA Advisory Council studied several aspects of target date funds, including challenges faced by plan fiduciaries in selecting and monitoring appropriate target date funds for their plans, and recommended that the Department provide additional guidance to plan fiduciaries. In 2009, the Department and the U.S. Securities and Exchange Commission held a joint public hearing to examine several issues related to target date funds, including how they are selected by plan fiduciaries and by investors. Several witnesses at the hearing also indicated that plan fiduciaries would benefit from additional guidance on the evaluation and selection of target date funds.

Surveys and studies suggest that target date funds are growing in popularity in 401(k)-type plans, both as investment options generally and as qualified default investment alternatives for participants who do not provide investment direction. For example, according to a recent survey, almost 58 percent of 401(k)-type plans offered target date funds as an investment option in 2008. Also, out of the approximately 40% of 401(k)-type plans that contained an automatic enrollment feature, almost 60% of these plans used target date funds as a qualified default investment alternative. With the growing popularity of target date funds as plan investment options and choices, the Department believes that providing additional guidance to plan fiduciaries will help enhance retirement security for employees.

EPIC Advisors was recently featured in the ASPPA Journal, highlighting our firm's commitment to ongoing education. We've built a strong service culture for our clients, and that includes providing service personnel who are certified as industry professionals and stay up to date on industry news and trends. ASPPA has recognized EPIC as a leader in the use of industry education program to educate, motivate, and award our employees.

WHAT: Webcast on Form 5500 and Electronic Filing Requirements
WHO: Employers and plan professionals
WHEN: Jan. 21 2010, 1:00 to 3:00 p.m. EDT
WHERE: Live over the Internet at the URL below
HOW: Registration is required and available on a first-come, first-served basis. Visit EBSA's Web site at www.dol.gov/ebsa and click on "Getting Ready for 2009 Form 5500 and Electronic Filing, Part IV Webcast" under Compliance Assistance Webcasts/Seminars/Workshops. MORE INFORMATION: Call 202-693-8660

deposited to small pension and welfare benefit plans with fewer than 100 participants by providing a safe harbor period of seven business days following receipt or withholding by employers. This regulation will enhance the clarity and certainty for many employers as to when participant contributions will be treated as contributed in a timely manner to employee benefit plans. Click here to review the final rules.