During third quarter 2009, governments have been striving to rebalance the responsibilities of employers, employees, and the state in the wake of the global economic crisis.
Legislative activity during the second quarter 2009 was characterized by attempts to reduce problems created or exacerbated by the economic crisis.
Germany
As a result of the recent economic crisis and ensuing bankruptcies, the German pension insolvency insurer (PSV) has issued an informational bulletin that warns insolvency premiums for 2009 are likely to be multiple times higher than in recent years.
Japan
The Japanese government announced that employer contribution limits for defined contribution plans will increase effective January 1, 2010.
United States of America
On October 7, 2009, the IRS issued much-anticipated final regulations on valuing assets and liabilities for the funding of single employer defined benefit pension plans and benefit restrictions for underfunded defined benefit plans. The final rules apply to plan years beginning on or after January 1, 2010.
On October 7, 2009, the Department of Homeland Security (DHS) issued a final rule rescinding its "no-match" rule.
Hewitt's Alison Borland shares ideas to improve the defined contribution retirement system with the ERISA Advisory Council.
On September 5, 2009, President Obama announced new initiatives for retirement savings in his weekly radio address. On the same day, the Treasury and Internal Revenue Service (IRS) issued a group of Notices and Revenue Rulings intended to advance the President's retirement savings initiatives.
The Internal Revenue Service (IRS) issued guidance (Notice 2009-75) on September 8, 2009 that provides some additional clarifications around the taxation of rollovers from an employer plan to a Roth individual retirement account (IRA).
President Obama delivered a nationally televised address on health care reform September 9, 2009, telling a joint session of Congress that "now is the time to deliver on health care."
The Federal Trade Commission (FTC) and the Department of Health and Human Services (HHS) have released final rules on health information breach notification requirements for covered entities under the Health Information Technology for Economic and Clinical Health (HITECH) Act, which was included in the American Recovery and Reinvestment Act (ARRA) (P.L. 111-5).
The IRS has delayed the deadline for FBAR reports related to offshore investment funds held by pension plans and other employee benefit plans.
Hewitt Associates submitted comments to the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) on August 13, 2009 concerning the expedited review of COBRA premium subsidy denials.
Hewitt has been actively involved in the discussions and debates surrounding pension funding challenges and the need for relief following the significant market downturns of recent months.
On June 24, Hewitt's Ken Sperling provided the House Ways and Means Committee with a written response to the Discussion Draft of the House Tri-Committee Health Care Reform Proposal, addressing the reform of America's health care system and the expansion of health care coverage.
