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The ERISA Outline Book - Current Developments

On this page we reference significant current developments, organized by chapter, that affect the 2017 Print Edition of the ERISA Outline Book (EOB). The Online Edition of the EOB is updated on a periodic basis. The last update went live in May 2017 and reflected developments through the end of April 2017. The next update is expected by the end of August 2017.

In the entries below, you will find a link to the source material. If you link to that page, you will need to click the "back" button on your browser to return to this page. For a list of current developments that is not referenced to The EOB, click here. For an archive of the Current Developments affecting the 2016 Edition of The EOB, click here.

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Chapter 1A

  • Cash or Deferred Arrangement definition
    Election offered by State to receive enhanced subsidized early retirement pension or a lump sum cash payment was an impermissible cash or deferred arrangement [Citation: PLR 201722014 (March 2, 2017)]
    Text available at http://bit.ly/2qJtjca
  • Church plan definition
    Supreme Court holds “principal purpose organization” of church may establish and maintain a church plan that is exempt from ERISA [Citation: Advocate Health Care Network v. Stapleton, 137 S.Ct. 1652 (June 5, 2017)]
    Text available at http://bit.ly/2s9UDEr
  • Filing dates/deadlines to perform acts definition
    The IRS has granted penalty relief for partnerships that, for the 2016 tax year, filed returns by the old due date rather than the new due date. [Citation: Notice 2017-47, 2017-38 I.R.B. (September 18, 2017)]
    Text available at http://bit.ly/2xp3BB1
  • Filing dates/deadlines to perform acts definition (Parts C and D)
    IRS, DOL and PBGC jointly providing relief for pension plans affected by Hurricanes Harvey and Irma [Notice 2017-49, 2017-40 (October 2, 2017; advance release on September 13, 2017)]
    Text available at http://bit.ly/2vTnr2U
    PBGC disaster relief provided for victims of Hurricanes Harvey and Irma [Citation: Disaster Relief Announcements 17-09 through 17-13 (August 29 through September 20, 2017)]
    Text available at http://bit.ly/2fzXA9V (PBGC’s disaster relief webpage)
    DOL provides relief for victims of Hurricanes Harvey, Irma and Maria, and California Wildfires [Citation: DOL News Release 17-1216-NAT (August 30, 2017) (Harvey), DOL News Release 17-1297-NAT (September 15, 2017) (Irma), EBSA News Release (November 21, 2017) (Maria and California Wildfires), Extension of Certain Time Frames for Employee Benefit Plans Affected by Hurricane Maria, 82 F.R. 55507 (November 22, 2017)]
    Text available at http://bit.ly/2jJ0Xjk (Hurricane Harvey), http://bit.ly/2hiAmoX (Hurricane Irma), http://bit.ly/2A0tfdD (Hurricane Maria and California Wildfires), http://bit.ly/2hVdekH (Joint Regulatory Relief from DOL and Treasury)

Chapter 1B

  • Pre-Approved Plan definition
    Revised procedure for Pre-Approved Plans combines M&P plans and volume submitter plans into a single category of Pre-Approved Plans, expands plan eligible to use Pre-Approved Plan Documents, delays third on-cycle submission period for Defined Contribution Pre-Approved Plans [Citation: Rev. Proc. 2017-41, 2017-29 I.R.B. (July 17, 2017) (advance release on July 3, 2017)]
    Text available at http://bit.ly/2tvvowE

Chapter 2

  • No entries
    ...

Chapter 3A

  • Section III, Part A
    IRS identifies types of compensation-based formulas under cash balance plans that may raise definitely determinable benefit issues [Citation: Memorandum for Employee Plans (EP) Employees from Lisa J. Beard, Acting Director, Employee Plans, Control No. TE/GE-04-0417-0014 (April 7, 2017)]
    Text available at http://bit.ly/2on5HcY

Chapter 3B

  • Section VIII, Part B.4.
    Mortality tables for post-2017 plan years; expanded availability of substitute mortality tables [Citation: Treas. Reg. §§1.430(h)(3)-1, 1.430(h)(3)-2, and 1.431(c)(6)-1, 82 F.R. 46388 (October 5, 2017)]
    Text available at http://bit.ly/2ggYDfs
    Revised procedures issued for requesting approval to use plan-specific substitute mortality tables for minimum funding purposes [Citation: Rev. Proc. 2017-55, 2017-43 I.R.B. (October 23, 2017) (advance release on October 3, 2017)]
    Text available at http://bit.ly/2hJB2r7
    Static mortality tables released for IRC §417(e) determinations for annuity starting dates that occur in stability periods beginning in 2018; alternative static mortality tables 2018 valuation dates for plans electing transition rule in new regulations [Citation: Notice 2017-60, 2017-43 I.R.B. (October 23, 2017) (advance release on October 3, 2017)]
    Text available at http://bit.ly/2xVYvuS
  • Section VIII, Part B.8.
    Update of IRS procedures for automatic approvals in funding method changes [Citation: Rev. Proc. 2017-56, 2017-44 I.R.B. (October 30, 2017); advance release on October 11, 2017]
    Text available at http://bit.ly/2hBUvGM
    Procedures for obtaining IRS approval of funding method changes not covered by automatic approval procedure [Citation: Rev. Proc. 2017-57, 2017-44 I.R.B. (October 30, 2017); advance release on October 11, 2017]
    Text available at http://bit.ly/2hDUFxn
  • Section IX, Part A.2.g.
    Cash balance plans that still use IRC §417(e) methodology to compute lump sums may use IRC §411(b)(5)(E) age discrimination test, but, for post-2016 plan years, may not rely on the safe harbor age discrimination test under IRC §411(b)(5)(A) [Citation: CCA 201617006 (March 28, 2016)]
    Text available at http://1.usa.gov/1WKL3Qk
  • Section X, Part C
    Amendment adopted after participant no longer was working union jobs but before he resumed union work did not result in anti-cutback violation because it only affected the rate of future accruals [Citation: Morrone v. Pension Fund of Local No. One, I.A.T.S.E., 867 F.3d 326 (2nd Cir. August 14, 2017)]
    Text available at http://bit.ly/2hN7EAs
  • Section X, Part F.7.
    Updated of procedures for requesting approval of a proposed benefit suspension under a multiemployer defined benefit plan in critical and declining status, as permitted under IRC §432(e)(9); model notice to participants provided [Citation: Rev. Proc. 2017-43, 2017-31 I.R.B. (July 31, 2017) (advance release on July 13, 2017)]
    Text available at http://bit.ly/2tfWT9E

Chapter 4

  • No entries
    ...

Chapter 5

  • No entries
    ...

Chapter 6

  • Section III, Part C.2.b.
    IRS issues model amendments for offering bifurcated benefit distribution options that will comply with Treas. Reg. §1.417(e)-1(d)(7) [Citation: Notice 2017-44, 2017-36 I.R.B. (September 5, 2017)]
    Text available at http://bit.ly/2whg2h1
  • Section III, Part C.3.a.2)
    Static mortality tables released for IRC §417(e) determinations for annuity starting dates that occur in stability periods beginning in 2018; alternative static mortality tables 2018 valuation dates for plans electing transition rule in new regulations [Citation: Notice 2017-60, 2017-43 I.R.B. (October 23, 2017) (advance release on October 3, 2017)]
    Text available at http://bit.ly/2xVYvuS
  • Section IV, Part C
    Congress provides liberalized distribution, rollover and loan rules for certain taxpayers affected by Hurricanes Harvey, Irma and Maria; provides relief from premature distribution penalty [Citation: Disaster Tax Relief and Airport and Airway Extension Act of 2017 (Title V) (“DTRA”), P.L. 115-63 (September 29, 2017)]
    Text available at http://bit.ly/2jc4ByI
  • Section IV, Part C.4.
    IRS Examination Guidelines on substantiation of hardship distributions [Citation: Memorandum for EP Examinations Employees: Substantiation Guidelines for Safe Harbor Distributions from Section 401(k) Plans, from Thomas J. Petit, Acting Director, EP Examinations (February 23, 2017)]
    Text available at http://bit.ly/2m8FLTs
    IRS provides relief from certain verification procedures that may be required for participant loans and hardship distributions to victims of Hurricanes Harvey, Irma and Maria, and California Wildfires [Citation: Announcement 2017-11, 2017-39 I.R.B. (September 25, 2017; advance release on August 30, 2017); Announcement 2017-13, 2017-40 I.R.B. (October 2, 2017; advance release on September 13, 2017); Announcement 2017-15, 2017-47 I.R.B. (November 20, 2017; advance release on October 31, 2017)]
    Text available at http://bit.ly/2vtcM2G (Announcement 2017-11) (Harvey), http://bit.ly/2vSUDaJ (Announcement 2017-13) (Irma), http://bit.ly/2hX4Gqc (Announcement 2017-15) (Maria and Wildfires)
  • Section VII, Part L
    IRS examiners told not to challenge plans that have not made timely RMDs to missing participants if reasonable search steps have been taken [Citation: TEGE-04-1017-003 (October 19, 2017)]
    Text available at http://bit.ly/2yYH6AK

Chapter 7

  • Section IV, Part B
    Congress provides liberalized distribution, rollover and loan rules for certain taxpayers affected by Hurricanes Harvey, Irma and Maria; provides relief from premature distribution penalty [Citation: Disaster Tax Relief and Airport and Airway Extension Act of 2017 (Title V) (“DTRA”), P.L. 115-63 (September 29, 2017)]
    Text available at http://bit.ly/2jc4ByI
  • Section IX, Part B.3.c.2)
    IRS memorandum to exam agents allows for two interpretations of how $50,000 limit under IRC §72(p) applies to multiple loans during a 12-month period [Citation: Memorandum For EP Examinations Employees, Control No. TEGE-04-0717-0020 (July 26, 2017)]
    Text available at http://bit.ly/2wbCogg
  • Section IX,, Part C.4.
    IRS memorandum clarifies how the maximum cure period works when installment payments are missed and missed payments later covered by resumed installment payments or by refinancing of the loan [Citation: CCA 201736022 (August 30, 2017) (released September 8, 2017)]
    Text available at http://bit.ly2xDsvgF
  • Section XVI, Part E
    Partnership 2016 plan contribution timely if contributed by deadline that would have applied had statutory changes not been made to tax filing deadlines [Citation: Notice 2017-71, 2017-51 I.R.B. (December 18, 2017) (advance release on November 30, 2017)]
    Text available at http://bit.ly/2AlX4HE

Chapter 8

  • No entries

Chapter 9

  • Section IX, Part B.5.f.
    Extension of temporary relief for certain DB/DC combo plans involving a “closed” DB plan to pre-2019 plan years [Citation: Notice 2017-45, 2017-38 I.R.B. (September 18, 2017)
    Text available at http://bit.ly/2xUySbc

Chapter 10

  • No entries

Chapter 11

  • No entries

Chapter 12

  • Section IX, Part A.6.
    Arizona’s revocation-on-divorce statute resulted in forfeiture of former spouse’s rights to IRA after IRA owner’s death; contractual choice-of-law provision not followed [Citation: Lazar v. Kronke, 862 F.3d 1186 (9th Cir. July 14, 2017)]
    Text available at http://bit.ly/2ueKSVI

Chapter 13A

  • Section II, Part D
    Joint resolution of Congress nullifies regulation to exempt mandatory IRA programs of States and their political subdivisions from ERISA [H.J. Res. 67 (April 13, 2017); H.J. Res. 66 (May 17, 2017]
    Text available at http://bit.ly/2ovqHi4 (H.R. 67) and https://bit.ly/2q0aOz9 (H.R. 66)
  • Section V, Part E.3.a.3)
    PBGC prescribes an alternative method for determining whether reporting an attribution event to the PBGC is required under PBGC Reg. §4043.23(a)(2) [Citation: Technical Update 17-1 (September 15, 2017)]
    Text available at http://bit.ly/2hlRGJE
  • Section V, Part I
    IRS, DOL and PBGC jointly providing relief for pension plans affected by Hurricanes Harvey and Irma [Notice 2017-49, 2017-40 (October 2, 2017; advance release on September 13, 2017)]
    Text available at http://bit.ly/2vTnr2U
    PBGC disaster relief provided for victims of Hurricanes Harvey and Irma [Citation: Disaster Relief Announcements 17-09 through 17-13 (August 29 through September 20, 2017)]
    Text available at http://bit.ly/2fzXA9V (PBGC’s disaster relief webpage)
  • Section VI, Part E.3.f.
    Second Circuit finds one-year statute of limitations for civil forfeitures under State law applies to section 502(c)(1) claims [Citation: Brown v. Rawlings Financial Services, LLC, 868 F.3d 126 (2nd Cir. August 22, 2017)]
    Text available at http://bit.ly/2knKh15

Chapter 13B

  • Section II, Part A.2.
    DOL delays the Applicability Date of the fiduciary regulation and associated prohibited transaction exemptions, provides extended delay for requirements other than the Impartial Conduct Standards [Citation: Extension of Applicability Date of DOL Reg. §2510.3-21, PTEs 2016-01 and 2016-02, and amendments to PTEs 75-1, 77-4, 80-83, 83-1, 84-24 and 86-128, 82 F.R. 16902-16918 (April 7, 2017)]
    Text available at http://bit.ly/2oJupYf
    DOL adopts temporary nonenforcement policy during Transition Period under conflict of interest exemptions and issues FAQs regarding compliance during such period [Citation: Field Assistance Bulletin (FAB) 2017-02 (May 22, 2017); Conflict of Interest FAQs (Transition Period) (May 2017)]
    Text available at http://bit.ly/2qLxuGY (FAB 2017-02); http://bit.ly/2wNqbPU (Transition Period FAQs)
    DOL issues additional FAQs that excuse service providers from expressly disclosing fiduciary status in 408(b)(2) disclosures during the Transition Period under the BIC and Principal Transaction Exemptions, and address the application of the Fiduciary Rule to recommendations to increase contributions and plan participation [Citation: Conflict of Interest FAQs (408b-2 Transition Period, Recommendations to Increase Contributions and Plan Participation) (August 2017)]
    Text available at http://bit.ly/2vtY4ao
  • Section II, Part C.7.
    DOL delays the Applicability Date of revised disability claims regulation to April 1, 2018 [Prop. DOL Reg. §2560.503-1(p)(3) and (4), 82 F.R. 56560 (November 29, 2017)]
    Text available at http://bit.ly/2Bmjnum
  • Section II, Part E.4.e.4)
    Damages award on fiduciary breach with respect to substitution of default investment fund vacated because district court failed to consider other damages calculation other than a suggested alternative mentioned by the appellate court in the earlier opinion [Citation: Tussey v. ABB, Inc., 850 F.3d 951 (8th Cir. (MO) March 9, 2017)]
    Text available at http://bit.ly/2mP9dPn
  • Section III, Part A.2.c.
    Administrator acted arbitrarily in interpreting plan language that clearly applied under the claimants’ situation regarding involuntarily termination from the controlled group [Citation: Knowlton v. Anheuser-Busch Companies Pension Plan, No. 15-3538, 849 F.3d 422 (8th Cir. February 22, 2017)]
    Text available at http://bit.ly/2luQgjr
    Interpretation of document to assume continued base salary during the participant’s disability period was reasonable even though it resulted in a lower average compensation calculation for the participant [Citation: Dowling v. Pension Plan For Salaried Employees, 817 F.3d 239 (3rd Cir. September 15, 2017)]
    Text available at http://bit.ly/2xqBBw0
  • Section III, Part D.1.a.
    Participant who declined generous job transfer offer to take lump sum option that had been incorrectly calculated may move forward with his surcharge claim against plan fiduciaries [Citation: Retirement Committee of DAK Americas LLC v. Brewer, 867 F.3d 471 (4th Cir. August 14, 2017)]
    Text available at http://bit.ly/2uGXAyI
  • Section III, Part D.1.a.5)
    Reformation of defined benefit plan ordered by court because of fraudulent concealment of the wear-away effect of replacing the plan’s traditional benefit formula with a cash balance formula [Citation: Osberg v. Foot Locker, Inc., 862 F.3d 198 (2nd Cir. July 6, 2017)]
    Text available at http://bit.ly/2wxkZiQ
  • Section IV, Part C
    The 6-year statute of limitations under ERISA §413 regarding fiduciary breach actions may be waived by the defendant [Citation: Secretary of Labor v. Preston, No. 873 F.3d 877 (11th Cir. October 12, 2017)]
    Text available at http://bit.ly/2x0YqTM
  • Section IV, Part D
    Entire course of litigation needs to be considered to determine whether a party’s request for appellate attorney’s fees should be granted [Citation: Micha v. Sun Life Assurance of Canada, 874 F.3d 1052 (9th Cir. October 31, 2017)]
    Text available at http://bit.ly/2niqQIJ
  • Section IV, Part F.5.
    Promissory estoppel claim against health insurer ruled not preempted by ERISA because medical provider did not receive valid assignment of payment and received an independent promise from insurer [Citation: McCulloch Orthopaedic Surgical Services, PLLC v. Aetna, Inc., 857 F.3d 141 (2nd Cir. May 18, 2017)]
    Text available at http://bit.ly/2fQtJxA

Chapter 14

  • Section II, Part C.2.b.
    DOL issues additional FAQs that excuse service providers from expressly disclosing fiduciary status in 408(b)(2) disclosures during the Transition Period under the BIC and Principal Transaction Exemptions, and address the application of the Fiduciary Rule to recommendations to increase contributions and plan participation [Citation: Conflict of Interest FAQs (408b-2 Transition Period, Recommendations to Increase Contributions and Plan Participation) (August 2017)]
    Text available at http://bit.ly/2vtY4ao
  • Section II, Part C.2.b.4)
    Proposed regulations that would have required a separate guide to locate specific required information for lengthy or multi-document 408(b)(2) disclosures has been withdrawn from the DOL’s regulatory agenda [Citation: Semiannual Agenda of Regulations (Department of Labor):, Guide or Similar Requirement for Section 408(b)(2) Disclosures, 82 F.R. 40315 (August 24, 2017)]
    Text available at http://bit.ly/2wrHU2n
  • Section II, Part E
    DOL delays the Applicability Date of the fiduciary regulation and associated prohibited transaction exemptions, provides extended delay for requirements other than the Impartial Conduct Standards [Citation: Extension of Applicability Date of DOL Reg. §2510.3-21, PTEs 2016-01 and 2016-02, and amendments to PTEs 75-1, 77-4, 80-83, 83-1, 84-24 and 86-128, 82 F.R. 16902-16918 (April 7, 2017)]
    Text available at http://bit.ly/2oJupYf
    DOL adopts temporary nonenforcement policy during Transition Period under conflict of interest exemptions and issues FAQs regarding compliance during such period [Citation: Field Assistance Bulletin (FAB) 2017-02 (May 22, 2017); Conflict of Interest FAQs (Transition Period) (May 2017)]
    Text available at http://bit.ly/2qLxuGY (FAB 2017-02); http://bit.ly/2wNqbPU (Transition Period FAQs)
    DOL delays the Applicability Date of the requirements (other than the Impartial Conduct Standards) of the Best Interest Contract Exemption, the Principal Transaction Exemption, and amendments to PTE 84-24 to July 1, 2019 [Citation: 18-month Extension of Transition Period and Delay of Applicability Dates, 82 F.R. 56545 (November 29, 2017)]
    Text available at http://bit.ly/2Agczkt
  • Section II, Part E.5.
    DOL will not enforce the limitation on arbitration in the Best Interest Contract and Principal Transactions Exemptions [Citation: Field Assistance Bulletin 2017-03 (August 30, 2017)]
    Text available at http://bit.ly/2wiUEqR

Chapter 15

  • Section II, Part C
    2017 Cumulative List issued for review of Pre-Approved DC Plans in the 3rd remedial amendment cycle [Citation: Notice 2017-37, I.R.B. 2017-29 (July 17, 2017) (advance release on July 3, 2017)]
    Text available at http://bit.ly/2sqmTDP
  • Section II, Part D
    2017 Required Amendment List issued by the IRS [Citation: Notice 2017-72, 2017-52 I.R.B. (December 26, 2017) (advance release on December 5, 2017)]
    Text available at http://bit.ly/2jjR0GH
  • Section II, Part E
    IRS posts initial Operational Compliance List on its website [Citation: Operational Compliance List (February 27, 2017), www.irs.gov]
    Text available at http://bit.ly/2mLabbv
  • Section III, Part A
    Annual update of Employee Plans determination letter application procedures [Citation: Rev. Proc. 2017-4, 2017-1 I.R.B. (January 3, 2017)]
    Text available at http://bit.ly/2hMvZRn
    IRS memorandum sets forth revised criteria for mandatory review of determination letter cases [Citation: Memorandum on Changes in Tax Exempt Quality Management System and Mandatory Review Standards, TE/GE-07-0417-0018 (April 28, 2017)]
    Text available at http://bit.ly/2oYeNAz

Chapter 16

  • Section II, Part C.3.
    IRS Chief Counsel addresses whether certain arrangements involving retirement income accounts under a church-maintained 403(b) plan would violate the exclusive benefit rule [Citation: Chief Counsel Memorandum 201742022 (October 20, 2017)]
    Text available at http://bit.ly/2id3mPj
  • Section IV, Part B.3.a.1)m)
    IRS analyzes several scenarios under back-to-back arrangement rule [Citation: CCA 201725027 (March 6, 2017)]
    Text available at http://bit.ly/2rLV0S8

Chapter 17

  • Section I
    Adjusted dollar limits for 2018 [Citation: Notice 2017-64, 2017-45 I.R.B. (November 6, 2017) (advance release on October 19, 2017)]
    Text available at http://bit.ly/2gSqoeH

 


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