Get access to the exclusive HR Resources you need to succeed in 2018!
SHRM board member David Windley discusses how unconscious bias can derail workplace diversity efforts.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Notice applies to spousal consent, survivor benefits, QDROs and other plan functions
The Internal Revenue Service issued
Notice 2014-19 on April 4, 2014, setting forth the rules for recognition of same-sex spouses in retirement plan administration. Such recognition is required under the U.S. Supreme Court's decision in
U.S. vs. Windsor, which struck down Section 3 of the Defense of Marriage Act.
Most significantly, the guidance does not require plan sponsors to retroactively apply same-sex spousal recognition standards prior to June 26, 2013 (the date of the
Windsor decision), but does allow for optional retroactive application of such standards prior to that date.
Notice 2014-19 requires qualified retirement plans to recognize the same-sex spouse of a participant as of June 26, 2013, for purposes of:
Notice 2014-19 also confirms that retirement plan administrators must use the
"state of commitment" standard in determining same-sex spouses as of Sept. 16, 2013. Qualified retirement plans that choose not to recognize same-sex spouses before June 26, 2013 will not be subject to plan disqualification or face penalties as a result of this decision.
Qualified retirement plans whose terms are inconsistent with
U.S. v. Windsor and the state of commitment standard must be amended to comply with the ruling and standard. Generally speaking, non-governmental single employer plans have until Dec. 31, 2014 to adopt an amendment.
In the case of governmental plans, an amendment must be adopted no later than the close of the first regular legislative session of the legislative body with amendment authority that ends after Dec. 31, 2014. A required plan amendment can be adopted regardless of whether the plan would otherwise be subject to limitations set forth under Section 436 of the Internal Revenue Code (which deals with funding-based limits on plan benefits).
Brian M. Pinheiro,
Diane A. Thompson and
Jonathan M. Calpas are attorneys in Ballard Spahr’s employee benefits and executive compensation group. They regularly advise employers on providing benefits to same-sex couples and on all aspects of qualified retirement plan compliance. © 2014 by Ballard Spahr LLP. All rights reserved. Reposted with permission.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Choose from dozens of free webcasts on the most timely HR topics.
SHRM’s HR Vendor Directory contains over 3,200 companies