Health and Life

• Life Insurance
  The HEART Act added Code Sec. 401 (a)(37) which provides that, if a participant dies while performing qualified military service, his survivors are entitled to any additional benefits that would have been provided under the plan had the participant resumed employment and then terminated employment on account of death. The IRS has clarified that the types of benefits subject to Code Sec. 401 (a)(37) include accelerated vesting, ancillary life insurance benefits, and other survivor’s benefits provided by the plan that are contingent on a participant’s termination of employment due to death. According to the IRS, if a participant dies while performing military service but was not entitled to reemployment rights with the employer, Code Sec. 401 (a)(37) does not apply in determining survivor benefits.

Personal

• Annuities
  Notice Periods. Notice periods for rollovers, consent to distribution and joint and survivor annuities are increased from 90 days to 180 days.