The Washington Report

October 2, 2024

Note to Subscribers

While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.

Retirement

 

PBGC Releases 2022 Pension Insurance Data Tables Installment
On September 23, 2024, the Pension Benefit Guaranty Corporation (PBGC) released the 2022 Pension Insurance Data Tables Installment. The tables summarize information on the PBGC’s Single-Employer and Multiemployer Insurance Programs and the defined benefit pension system, which includes time-series data on the PBGC’s finances and operations. The data on PBGC-insured defined benefit plans includes information on the number of plan participants, plan funded status, hybrid plans, frozen plans, risk transfer activity, and Special Financial Assistance payments. The PBGC’s data tables provide a comprehensive source of information on its insurance programs and employer-sponsored defined benefit plans.

The PBGC 2022 Pension Insurance Data Tables Installment is available here.

Other HR/Employment

 

IRS Announces Special Per Diem Rates
On September 20, 2024, the Internal Revenue Service (IRS) released Notice 2024-68, which provides the special per diem rates effective October 1, 2024, which taxpayers may use to substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling. The Notice provides the special transportation industry rate, the rate for the incidental expenses-only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method. Please refer to the Notice for specific rates.

IRS Notice 2024-68 is available here.

Aon Publications

 

Now Available: New Private Letter Ruling Permitting Choice
The Internal Revenue Service (IRS) issued a private letter ruling (PLR) that may provide a path forward to ensure that employees will more fully appreciate their employer’s benefit spending. In the PLR, the IRS permitted employees to direct nonelective employer contributions across their 401(k) plan, health reimbursement account, health savings account, and educational assistance student loan repayment program. As long as the employee has no right to receive the employer contribution in cash, the program design should provide increased flexibility to employees and ensure that the employer’s spending is used where most needed.

Aon’s Retirement Legal Consulting & Compliance practice has prepared a Client Alert describing the features of the IRS-approved program. While a PLR may only be relied upon by the taxpayer that requested the ruling, the PLR does provide guidance as to how employers may structure such a program to better allocate their benefit spending and improve employee appreciation.

The Aon Client Alert is available here.