The Washington Report
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December 18, 2017
Happy Holidays From Aon
Next Washington Report Will Be Published January 10, 2018; Change in Publication Schedule
The Washington Report will not be published on December 25, 2017, or January 1, 2018.
Please note that beginning in 2018, The Washington Report will no longer be published on Mondays and will move to a Wednesday publication schedule. Look for your next Aon Washington Report on Wednesday, January 10, 2018.
Happy holidays! We look forward to keeping you informed in the new year.
Retirement
IRS Publishes Updated Mortality Improvement Rates and Static Mortality Tables for Defined Benefit Pension Plans for 2019
On December 14, 2017, the Internal Revenue Service (IRS) published Notice 2018-02. The Notice provides the updated mortality improvement rates and static mortality tables that are used for determining: (1) minimum funding requirements under Code Section 430(h)(3) for 2019; (2) PBGC variable rate premiums for 2019; and (3) the minimum present value under Code Section 417(e)(3) for distributions with annuity starting dates that occur during stability periods beginning in the 2019 calendar year. The updated mortality assumptions anticipate slightly shorter life expectancies than the 2018 assumptions issued by the IRS in October of 2017. In most cases, these assumptions are expected to result in a modest reduction (1% or less) in plan liabilities and minimum lump sum conversion factors for 2019 compared to 2018.
IRS Notice 2018-02 is available here.
Other HR/Employment
IRS Releases Standard Mileage Rates for 2018
On December 14, 2017, the Internal Revenue Service (IRS) issued the 2018 optional standard mileage rates (Notice 2018-03) used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Beginning on January 1, 2018, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:
- 54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017;
- 18 cents per mile driven for medical or moving purposes, up 1 cent from the rate
for 2017; and
- 14 cents per mile driven in service of charitable organizations.
The business mileage rate and the medical and moving expense rates each increased 1 cent per mile from the rates for 2017. The charitable rate is set by statute and remains unchanged.
IRS Notice 2018-03 is available here.
The IRS news release is available here.
Fall 2017 Regulatory Plans Released
On December 14, 2017, the Trump Administration released its Fall 2017 Unified Agenda of Regulatory and Deregulatory Actions, which provides an updated report on the actions federal departments and administrative agencies (e.g., the Department of Labor, Equal Employment Opportunity Commission, Department of the Treasury, Department of Health and Human Services, Pension Benefit Guaranty Corporation, etc.) plan to issue in the near and long term. The agendas include regulatory plans and priorities for 2018 and provide a framework of activity expected throughout next year. Departments and agencies may delay the release of regulations at any time, so it is important to note that projected timelines are estimates and may not be met by the date(s) indicated in the agendas.
The link to the Current Unified Agenda of Regulatory and Deregulatory Actions (i.e., updated Regulatory Agendas and Plans, searchable by department and agency) is available here.