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Recent Development in Benefit Plans

Voluntary Compliance Fees Reduced. Effective February 1, 2016, the IRS has lowered its Voluntary Correction Program (VCP) fees for most plans eligible to file VCP applications. The IRS has cautioned that the most recent version of Form 8951 (last revised in September 2015) does not reflect the new fee schedule. Taxpayers should use the existing form until the new version is published and pay the applicable user fee determined by using the tables on its website.

Single Retirees Face Higher Health Costs. According to a study by the Employee Benefit Research Institute, single retirees were likely to spend more on certain health care expenses than retired couples over the same two-year period. Average per-person out-of-pocket spending for recurring expenses (such as doctor visits and prescription drugs) was roughly equal for both single and couple households. In contrast, the average total expense incurred by single retirees for non-recurring costs (such as hospital and nursing home stays) was more than double that of retired couples. The study suggests that non-recurring expenses decrease when spouses or partners are able to act as caregivers.

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