Updated Fee Disclosures - ERISA 408(b)(2)

by Kevin McGarry 21. June 2012 11:35
Effective July 1, 2012, there will be new ERISA 408(b)(2) disclosure rules. The regulation is intended to help plan sponsors/fiduciaries understand the administrative and investment costs being paid from their plan’s assets. Individual plan holders should have received information directly from their plan service providers (TPA’s, record keepers, etc.) that addresses this new regulation. The full article “Final Fee Disclosure Regulation Issued” can be viewed on Urish Popeck’s website.   Additionally, the newly-required annual disclosure of plan-level and investment-level fees and expenses must be provided to participants no later than Aug. 30, 2012. Please visit the Department of Labor page, which summarizes the regulation, and feel free to reach out to Urish Popeck with any questions you may have.
Categories: Advisory

Dodd-Frank: Impacting Executive Compensation

by Ken Urish 12. March 2012 08:05
Among several other purposes, when the Dodd-Frank Act became law in 2010 it required public companies to comply with a number of disclosure and shareholder-voting provisions regarding their compensation practices, and gave the SEC the authority to make additional rules in furtherance of these requirements. The SEC adopted a number of new provisions effective in 2012 requiring consideration of risk that could be associated with any of an organization's compensation plans, as well as the solicitation of shareholder input on executive compensation practices. Those are: Say on Pay – a non-binding shareholder vote is required at least once every three years to approve the compensation of the executive offers Say on Pay Frequency – the SEC permits companies to solicit a non-binding vote on the frequency of shareholder Say on Pay votes (every one, two, or three years) Shareholder Disclosure and Approval of Golden Parachutes – the rules require an advisory shareholder vote related to all compensation arrangements with executive officers in connection with any merger, acquisition, consolidation, proposed sale, or other disposition of all or substantially all assets of the company What's ahead? Compensation committees should be aware that many additional regulations are expected to be developed during 2012 that will be implemented for 2013. Further analyses and disclosures (e.g., CEO pay compared with shareholder performance, CEO pay as a percentage of the "median" company employee (compensation, etc.) are in process and will require new and more in-depth examination and communication of executive pay practices.
Categories: Advisory

2012 Offshore Voluntary Disclosure Program

by Bill Adams 13. February 2012 10:45
  The IRS recently announced that it has reopened the Offshore Voluntary Disclosure Program (OVDP), which will continue for an indefinite period of time.  The OVDP allows for reduced penalties for taxpayers who voluntarily disclose their offshore bank accounts or other assets that have not been properly taxed in the US. It is similar but not identical to the disclosure programs that were available in 2011 and 2009. So far, collections in back taxes and penalties under those programs total $4.4 billion. Participants in the program file all original and amended tax returns for up to eight years, and pay the associated back taxes, interest, and penalties. Participants generally pay a penalty of 27.5% of the highest aggregate balance in foreign accounts during the eight years prior to disclosure. However, accounts not exceeding $75,000 are subject to a 12.5% penalty, and taxpayers in certain situations may qualify for a 5% penalty. If a taxpayer shows reasonable cause for noncompliance, no penalty is imposed. Taxpayers who believe the penalty is unwarranted in their case may choose to opt out of the program and submit to an IRS examination. The IRS is becoming more adept at discovering hidden assets overseas. For those who willfully fail to report their foreign accounts or assets and do not participate in the OVDP, the law allows for a penalty of $100,000 or 50% of the balance of the undisclosed account each year. It is suggested that taxpayers who own unreported foreign accounts or assets consult an attorney and carefully weigh the financial consequences of participating in the program or opting out.
Categories: Tax