Stephen Pavlick

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Stephen Pavlick focuses his practice on employee benefits matters for multinational corporations. He concentrates on qualified plans, related fiduciary and other Employee Retirement Income Security Act (ERISA) issues, deferred compensation and equity arrangements, and funding strategies for post-retirement welfare benefits. He has worked extensively with cash balance plans. Read Stephen Pavlick's full bio.

Still Tax, Even Without the Distributed Cash

By , and on Oct 22, 2019
Posted In Employee Benefits, Retirement Plans

The IRS recently issued guidance on the tax treatment, withholding and reporting for required distributions from tax-qualified retirement plans. Plan sponsors should contact their retirement vendors and trustees to ensure that they implement the tax requirements of the new guidance appropriately for their tax-qualified retirement plans. Access the full article.

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PBGC’s Multiemployer Insurance Program Faces Insolvency, While Single-Employer Program Improves

By and on Sep 17, 2019
Posted In Employee Benefits, Retirement Plans

The Pension Benefit Guaranty Corporation (PBGC) recently issued a press release announcing that the Multiemployer Insurance Program remains in a dire financial condition, nearing insolvency. The agency’s insurance program for multiemployer pensions, covering more than 10 million people, will likely run out of money by the end of fiscal year 2025, according to the FY...

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Hardship Distribution Changes: What’s Next?

By and on Jul 16, 2019
Posted In Employee Benefits, Retirement Plans

In 2018, the Treasury Department and the IRS issued new hardship distribution rules applicable to defined contribution plans, and many plans have begun administering these new rules. While plan sponsors may want to wait for further IRS guidance before amending their plans, they should take steps now to inform employees of changes in hardship distribution...

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Internal Revenue Service Outlines Critical Cybersecurity Safeguards to Protect Sensitive Data

By and on Oct 16, 2018
Posted In Employee Benefits, Health and Welfare Plans, Privacy and Data Security, Retirement Plans

The Internal Revenue Service and the Security Summit partners recently issued a news release outlining the “Security Six,” a list of essential steps to protect stored employee information on networks and computers. Employee benefits professionals, including those who administer welfare and retirement plans for employees and beneficiaries, should review and implement the “Security Six” in...

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Congressional Tax Reform Efforts May Impact Retirement Plan Sponsors

By , and on Dec 12, 2017
Posted In Employee Benefits, Employee Stock Ownership Plans (ESOPs), Retirement Plans

On Saturday, the Senate passed its version of the Tax Cuts and Jobs Act. The process of reconciling the House and Senate versions of the bill has already begun in earnest. Currently, the retirement-plan-related changes included in each version of the bill still differ in many respects, and it is unclear which (if any) changes...

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New Hurricane Legislation Grants Additional Distribution, Withdrawal and Loan Relief for Certain Retirement Plan Participants

By , , and on Nov 9, 2017
Posted In Employee Benefits, Retirement Plans

The new Disaster Tax Relief and Airport and Airway Extension Act of 2017 provides additional relief and flexibility for retirement plan participants impacted by recent hurricanes, including relaxed rules for plan distributions, withdrawals and loans. Continue reading.

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Accelerating Deductions for Compensation and Benefits if Corporate Tax Rates Are Reduced

By on Jan 17, 2017
Posted In Benefit Controversies, Health and Welfare Plans, Retirement Plans

President-elect Trump proposes to reduce the maximum corporate income tax rate from 35 percent to 15 percent. While the effective date of any rate reduction is uncertain, it likely will not occur before 2018. Deductions claimed when tax rates are 35 percent are worth 20 percent more to the taxpayer than if the same deduction...

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Final IRS Regulations Simplify Pension Plan Requirements for Partial Annuity Distributions

By and on Oct 12, 2016
Posted In Retirement Plans

The Department of Treasury and Internal Revenue Service issued final regulations addressing the minimum present value requirements for pension benefits payable partly as an annuity and partly in an accelerated form, usually a lump sum. With these regulations, Treasury and IRS take another step in promoting lifetime income alternatives for retirement plan participants with simplified...

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IRS Expands Ability of Safe Harbor Plan Sponsors to Make Mid-Year Changes

By , and on Mar 15, 2016
Posted In Employee Benefits, Employment, Retirement Plans

The IRS recently issued guidance providing safe harbor 401(k) plan sponsors with increased flexibility to make mid-year plan changes. Notice 2016-16 sets forth new rules for when and how safe harbor plan sponsors may amend their plans to make mid-year changes, a process which traditionally has been subject to significant restrictions. Read the full article.

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Increase in PBGC Premiums Effective for 2017 and Later Years

By and on Dec 3, 2015
Posted In Employee Benefits, Fiduciary and Investment Issues, Retirement Plans

President Barack Obama signed into law the Bipartisan Budget Act of 2015 (the Budget Act), which raised Pension Benefit Guaranty Corporation (PBGC) premium rates beginning in 2017. Background Single-employer defined benefit pension plans must pay annual premiums to the Pension Benefit Guaranty Corporation (PBGC), the U.S. government agency that insures these plans. All single-employer defined...

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