By Florence Olsen
Recent Internal Revenue Service rulings on the “church plan” status of retirement plans sponsored by large hospital systems, including a ruling apparently received by the Saint Peter's Healthcare System Retirement Plan, indicate that the IRS is disinclined to modify its long-standing interpretation of church plan exemption under federal pension law, practitioners told BNA Aug. 23.
“This is an obvious setback for the St. Peter's plan participants who were fighting for the IRS to go their way,” said Thomas E. Clark Jr., chief compliance officer at FRA PlanTools, a fiduciary consulting company.
The IRS appears to have issued a ruling granting church plan status to the Saint Peter's Healthcare System Retirement Plan, according to an Aug. 22 participant letter that BNA obtained (164 DTR G-7, 8/23/13). BNA was unable to obtain a copy of the IRS ruling.
The key takeaway from recent church plan rulings for sponsors of church plans is that they should adhere to the structural requirements described in the rulings, said Ralph E. DeJong, a partner at McDermott Will & Emery in Chicago.
The full text of the Kaplan v. Saint Peter's Healthcare System complaint is at http://www2.bloomberglaw.com/public/
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).