Article by The Tax And Employee Benefits
Practice Group
Qualified Retirement Plans
The Internal Revenue Service (IRS) has announced
employers' new responsibilities under the Heroes Earnings
Assistance and Relief Tax Act of 2008 (Heroes Act). (P. L.
110-245, June 17, 2008) Plans do not have to be amended for Heroes
Act changes until the last day of their plan year beginning in
2010, although some of the provisions have earlier effective
dates.
For deaths (or disabilities as applicable) occurring on or after
January 1, 2007:
- Survivors of plan participants who die while performing
qualified military service are entitled to any additional plan
benefits that they would have received had the participants resumed
employment and then died. Examples: Accelerated vesting, ancillary
life insurance benefits, or other survivor benefits that are
contingent on the participant's death while employed. (Code
Section 401(a)(37))
