During second quarter 2008, legislative activity was dedicated to shoring up employment and social security systems.
Governments were clearly preoccupied with the sustainability of their social security old age pension systems and the promotion of employer-provided retirement plans as well as individual savings for retirement.
Canada
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United States of America
The Internal Revenue Service (IRS) issued final regulations clarifying the special rule that applies to a noncustodial parent claiming a child as a tax dependent.
On August 14, 2008, the Internal Revenue Service (IRS) released an updated and expanded version of its voluntary correction programs, grouped under the Employee Plans Compliance Resolution System (EPCRS), in Revenue Procedure 2008-50.
Revenue Ruling 2008-40 was published on July 28, 2008 by the Internal Revenue Service, which clarifies that a transfer of assets from a dual-qualified plan to a Puerto Rico-only qualified plan is treated as a taxable distribution to participants.
On August 6, 2008, the Treasury Department and Internal Revenue Service (IRS) released guidance which prevents certain transactions in which an employer transfers a qualified pension plan to an unrelated entity and the transfer is not connected with a transfer of significant business assets, operations, or employees.
The Department of Labor's (DOL) Employee Benefits Security Administration (EBSA) released guidance on July 14, 2008 to help plan administrators and service providers comply with the new requirements for reporting fee information on Form 5500 for plan years beginning on or after January 1, 2009.
Effective July 24, 2008, the federal minimum wage increases to $6.55 per hour.
On July 22, 2008, the Department of Labor's Employee Benefits Security Administration issued a proposed regulation on disclosure to participants in self-directed account plans.
The Centers for Medicare and Medicaid Services (CMS) issued updated Medicare Part D Model Disclosure Notices for use on or after June 15, 2008.
After both the House and Senate voted to override a veto by President Bush, the Medicare Improvements for Patients and Providers Act of 2008 (P.L. 110-275) became law on July 15, 2008.
On July 9, 2008, the Second Circuit Court of Appeals issued a unanimous decision that cash balance plans are not inherently age discriminatory with respect to benefit accruals prior to June 29, 2005. The Pension Protection Act of 2006 (PPA) separately provides that cash balance plans are not inherently age discriminatory for periods on or after June 29, 2005, but includes no provision for periods prior to that date.
On July 14, 2008, Hewitt submitted comments to the Internal Revenue Service (IRS) on proposed regulations regarding the determination of minimum required pension contributions under the Pension Protection Act of 2006.
Seventy years ago, on June 25, 1938, President Franklin D. Roosevelt signed into law the Fair Labor Standards Act (FLSA).
