Final safe harbor rule for small retirement plans issued
NEWS IN BRIEF — Posted Feb. 8, 2010
The money that employees contribute to various company-provided retirement plans should be deposited in these accounts within seven business days of receipt, according to a final rule issued by the Dept. of Labor Jan. 14.
The rule applies to companies with fewer than 100 employees participating in these programs and is intended to better define how the money should be handled.
"This rule will give employers greater clarity in remitting participant contributions to small pension and welfare plans in a timely manner," said Phyllis C. Borzi, assistant secretary of labor for the Dept. of Labor's Employee Benefits Security Administration.
Previously, funds had to be transmitted as soon as they could be separated from the employer's assets but not later than the 15th day of the month after a contribution. This, however, led to confusion.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/02/08/bibf0208.htm.