United States: Critical Time To Review Compensation Arrangements for Section 409A Compliance

Earlier this year, an Internal Revenue Service attorney informed the American Bar Association Section of Taxation that the IRS began a compliance initiative project (CIP) focused on Internal Revenue Code Section 409A.  This CIP is relatively narrow and is expected to only include the 10 most highly compensated individuals at 50 large companies.  The IRS plans to issue Information Documents Requests, commonly referred to IDRs, to these 50 companies.  These IDRs will focus on […]

By | October 4th, 2014 ||

Canada: Alberta Employer Liable For Employee’s Negligent Driving Of Company Vehicle – Even Though Employer Told Him Not To Drive It

Alberta employers should heed a recent appeal decision in which an employer was held liable for damage caused by an employee while driving a company vehicle – even though he was told not to drive it.

The employee worked for a roofing company. He was working on a residential roof. The employer gave him access to a company truck and trailer which were parked at the site, but only to access supplies and to keep […]

By | October 3rd, 2014 ||

United States: PBGC Intends To Monitor Lump-Sum And Annuity Cashouts Under Defined Benefit Plans

The Pension Benefit Guaranty Corporation (PBGC) stated in a filing published in the Federal Register on September 23, 2014, that it intends to require that plan sponsors report to the PBGC “certain undertakings” to cashout or annuitize benefits for specified groups of employees under defined benefit pension plans.  PBGC intends to make this reporting part of the 2015 PBGC premium filing procedures.

Recently, many defined benefit pension plan sponsors have been implementing lump-sum distribution windows, primarily […]

By | October 3rd, 2014 ||