Compliance May 22, 2013

ASPPA Makes Suggestions for In-Plan Roth Rollovers

The American Society of Pension Professionals & Actuaries (ASPPA) filed a comment letter with the Internal Revenue Service about in-plan Roth conversions.
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Provisions of the American Taxpayer Relief Act of 2012 (ATRA), expanded the availability of in-plan Roth rollovers (IRRs). ASPPA says this has increased the need for additional regulatory guidance regarding several administrative issues related to the implementation of IRRs in eligible plans, and the guidance it suggests will encourage plan sponsors to implement cost-effective ATRA IRR provisions that benefit plan participants, encourage increased plan participation levels and prevent leakage from participants’ plan accounts.   

In its letter, ASPPA recommends that the IRS extend the deadline for the adoption of the “discretionary amendment” that will be necessary to put in effect the ATRA provisions until the later of the last day of the plan year that the amendment is effective or December 31, 2014. ASPPA recommends that the IRS issue guidance clarifying that only fully-vested contribution sources are eligible to be transferred through an IRR, or, alternatively, that a plan sponsor may limit IRRs only to contribution sources that are fully vested.   

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ASPPA also recommends that the IRS issue guidance confirming that section 402A(c)(4)(E)(ii) of the Internal Revenue Code of 1986, as amended, permits non-spouse alternate payees and non-spouse beneficiaries to effect a transfer that is treated as an IRR in plans which permit IRRs.  

ASPPA’s comment letter is here.
Deals & People May 21, 2013

Drinker Biddle Hires Partner for Employee Benefits

Frances P. LaFleur joined Drinker Biddle & Reath LLP as a partner in the firm’s Employee Benefits and Executive Compensation Practice Group.
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LaFleur will focus her practice on advising clients on retirement, executive compensation and health and welfare plan issues, as well as ERISA (Employee Retirement Income Security Act) fiduciary governance matters. She will also serve as one of the leaders of the firm’s nationally prominent employee benefits practice for health systems and other tax exempt entities.

Prior to joining Drinker, LaFleur served 10 years at various in-house roles. Her most recent position was senior legal counsel for Schneider Electric. Immediately prior to that, she was senior counsel for Hillshire Brands and its predecessor firm, Sara Lee Corporation. She also served as senior attorney for BP America, Inc. She worked at Drinker Biddle’s predecessor firm in the Chicago market, Gardner Carton & Douglas, after graduating from law school.

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LaFleur earned her law degree from Northwestern University School of Law, and a bachelor’s degree, cum laude, from Eastern Illinois University.

“Fran brings to the firm additional strength to our expanding health industry employee benefits team,” said Howard J. Levine, chair of the firm’s national Executive Compensation and Employee Benefits Practice Group. “Her time in-house has not only expanded her legal skill, but also allows her to bring to private practice the clients’ perspective.”

LaFleur is the second partner to join the group this month and the third partner to join the firm’s Chicago office this year.

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