LRA Updates

ACCOUNTING DEVELOPMENT Mortality Tables for Determining Present Value Under Defined Benefit Pension Plans On April 28 the IRS published a Proposed Rule related to prescribed mortality tables to be used for defined benefit pension plans. The tables are used to calculate the present value of expected future benefit payments for purposes of determining the minimum…

JUDICIAL DEVELOPMENTS Athene v. American General, et al. – COLI SVP Product Dispute On April 18 the Delaware Superior Court granted an order to stay discovery and all other pending deadlines because the parties have agreed in principle to a settlement that would resolve the proceedings. To briefly recap this dispute: Terms of the pending…

TAX DEVELOPMENTS Biden Administration Releases Fiscal Year 2023 Budget Proposal On March 28 the Biden Administration released its Fiscal Year 2023 budget proposal. Primary tax policy proposals include a new 20% minimum tax on households with more than $100 million in wealth and an increase in the corporate tax rate to 28%. The summary table…

REGULATORY DEVELOPMENTS SEC Proposes Cybersecurity Rules for Investment Advisers Noting concerns that it has encountered during examinations of advisers and funds, the SEC is proposing rules targeted at improving cybersecurity programs for registered investment advisers and investment companies. The proposed rules, released February 9, include requirements to report significant cybersecurity incidents to the SEC and…

TAX DEVELOPMENTS IRS Final Guidance on Transition from LIBOR to Other Reference Rates On January 4 Final Regulations from the IRS were published in the Federal Register providing guidance on the tax consequences of the transition away from LIBOR in debt instruments, derivative contracts, and other contracts. The Final Regulations supersede the previous Proposed Regulations…

LEGISLATIVE DEVELOPMENTS Build Back Better Act Update On December 19 Senator Joe Manchin (D-WV) announced in a Sunday morning news interview that he would not vote in support of the Build Back Better Act. This decision effectively stalled the legislation, as the Senate Democrats needed unanimous support within the party to pass the legislation. White…

TAX DEVELOPMENTS Tax Legislation – Update President Biden signed into law the Infrastructure Investment and Jobs Act on November 15. This was bipartisan legislation that includes provisions related to federal-aid highway, transit, highway safety, motor carrier, research, hazardous materials, and rail programs. In a separate development, the House passed the Build Back Better Act (“BBBA”)…

TAX DEVELOPMENTS Tax Legislation – Update Progressive and Moderate democrats in Congress continue to negotiate partisan social spending and tax legislation called the Build Back Better Act. According to the latest reports, the size of the legislation has been reduced from $3.5 trillion to a reported target of $1.75 trillion. On October 28 the White…

LEGISLATIVE DEVELOPMENTS Government Infrastructure and Tax Legislation Update Congress continues to work on two separate spending and tax plans: On September 25 the House Budget Committee advanced Build Back Better Act bill. It will now head to the House Rules Committee where further changes are expected before it is brought to a vote on the…

LEGISLATIVE DEVELOPMENTS Government Infrastructure and Tax Legislation Update On August 10 the Senate passed the bipartisan INVEST in America Act (H.R. 3684). At present, the bill is expected to receive a House vote in conjunction with the passage of the additional $3.5 trillion budget reconciliation measure. On August 24 the House voted to approve the…