Treatment of Pension Rollover Distributions, 41171-41172 [E9-19521]
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Federal Register / Vol. 74, No. 156 / Friday, August 14, 2009 / Notices
Participants will have the opportunity
to hear about workforce strategies for
green jobs, entrepreneurship, training,
unemployment and reemployment
services, and research and policy tools
to manage and improve the systems. A
goal of the conference is for participants
to gain insight into what works and
what can be replicated in communities
across the nation. The conference will
feature a combination of plenary
sessions and workshops, including
presentations by ETA leaders.
DATES: The conference runs from 8:30
a.m. to 4:30 p.m. on Tuesday,
September 15, 2009 and from 8:30 a.m.
to 4 p.m. on Wednesday, September 16,
2009.
FOR FURTHER INFORMATION CONTACT:
Registration and additional information
for the Recovery and Reemployment
Research Conference can be accessed at
https://www.
RecoveryandReemployment.com. For
additional information related to
registering for the research conference,
contact Lauren Focarazzo of IMPAQ
International, the logistical contractor
for the conference, at
lfocarazzo@impaqint.com or 1–866–
677–4283 (this is a toll-free number).
For other inquiries, contact Janet Javar,
Office of Policy Development and
Research, USDOL/ETA, at
javar.janet@dol.gov or 200 Constitution
Ave., NW., Room N–5641, Washington,
DC 20210.
SUPPLEMENTARY INFORMATION: Space is
limited. There is no cost to register.
Interested individuals are encouraged to
register as soon as possible.
Signed at Washington, DC, this 7th day of
August, 2009.
Jane Oates,
Assistant Secretary, Employment and
Training Administration.
[FR Doc. E9–19516 Filed 8–13–09; 8:45 am]
BILLING CODE 4510–FM–P
DEPARTMENT OF LABOR
Employment and Training
Administration
[SGA/DFA–PY–08–19]
mstockstill on DSKH9S0YB1PROD with NOTICES
Solicitation for Grant Applications
(SGA) Amendment Two; Pathways Out
of Poverty
AGENCY: Employment and Training
Administration (ETA), Labor.
ACTION: Notice: Amendment to SGA/
DFA–PY–08–19.
The Employment and
Training Administration published a
document in the Federal Register on
SUMMARY:
VerDate Nov<24>2008
16:27 Aug 13, 2009
Jkt 217001
June 24, 2009, announcing the
availability of funds and solicitation for
grant applications (SGA) for Pathways
Out of Poverty to be awarded through a
competitive process. This amendment to
the SGA clarifies items related to: (1)
Use of funds for supportive services
(section IV.F); and (2) identifying
PUMA(s) to be served (section VIII.A.1).
The document is hereby amended.
1. ‘‘Use of Funds for Supportive
Services’’ section IV.F (page 30145) is
revised as follows to indicate a change
in the amount of grant funds that may
be used for supportive services:
a. Old Text—‘‘Grantees may use no
more than 5% of their grant funds on
these services.’’
b. New Text—‘‘Grantees may use no
more than 10% of their grant funds on
these services.’’
2. ‘‘Identify PUMA(s) to be Served’’
section VIII.A.1 (page 30151) is revised
to include the following paragraph at
the end of the section regarding
additional resources on PUMAs that
may be helpful:
a. New Text—‘‘Applicants should
note that the PUMA maps display the
outlines of census tracts but do not
show census tract numbers or street
names. Applicants looking for
additional information on the streetlevel boundaries of PUMAs should
cross-reference the appropriate PUMA
map, which can be found here (https://
www.census.gov/geo/www/maps/
puma5pct.htm) with the appropriate
census tract maps, which can be found
here (https://ftp2.census.gov/plmap/
pl_trt/). Follow the census tract map
link above, which will display a list of
States. Click on the appropriate State,
and then click the appropriate county
for a directory of map files for that
county. Each county directory contains
map files that show numbered census
tracts and street names for specific areas
within the county. For some counties,
the first file in the directory will be an
overview map of the entire county,
which serves as an index for the
remaining map files. Applicants can
then match the census tract outlines on
the PUMA map with the numbered
census tracts depicted on the census
tract maps. Identifying the census tracts
that serve as the outer edge of the
PUMA and zooming in on the census
tract maps to see the street names will
help applicants to identify the streetlevel boundaries of the PUMA.’’
FOR FURTHER INFORMATION CONTACT:
Melissa Abdullah, Grants Management
Specialist, Division of Federal
Assistance, at (202) 693–3346.
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
41171
Signed at Washington, DC, this 11th day of
August 2009.
Donna Kelly,
Grant Officer, Employment & Training
Administration.
[FR Doc. E9–19510 Filed 8–13–09; 8:45 am]
BILLING CODE 4510–FN–P
DEPARTMENT OF LABOR
Employment and Training
Administration
Treatment of Pension Rollover
Distributions
AGENCY: Employment and Training
Administration, Department of Labor.
ACTION: Notice.
SUMMARY: The Employment and
Training Administration has provided
guidance to State workforce agencies on
an amendment to Federal
unemployment compensation (UC) law
that prohibits the reduction of UC due
to nontaxable pension rollover
distributions. This continuing guidance
was issued on May 4, 2009 as UIPL No.
10–09 and is published below to inform
the public. It rescinds UIPL No. 22–87,
Change 2.
SUPPLEMENTARY INFORMATION:
UIPL 10–09: Treatment of Pension
Rollover Distributions
1. Purpose. To advise States of an
amendment to Federal unemployment
compensation (UC) law that prohibits
the reduction of UC due to nontaxable
pension rollover distributions.
2. References. Sections 3304(a)(15) of
the Federal Unemployment Tax Act
(FUTA); Public Law 109–280, the
Pension Protection Act of 2006; Public
Law 110–458, the Worker, Retiree, and
Employer Recovery Act of 2008;
Unemployment Insurance Program
Letter (UIPL) 22–87 and Changes 1 (60
FR 55,604 (1995)) and 2 (68 FR 15,241
(2003)); Internal Revenue Service (IRS)
Publications 575 and 590; and IRS Tax
Topic 413—Rollovers from Retirement
Plans.
3. Background. As a result of an
amendment made by the Worker,
Retiree, and Employer Recovery Act of
2008, States are now prohibited from
reducing UC due to nontaxable pension
rollover distributions. Whether to
reduce UC due to receipt of taxable
distributions remains a matter for the
State to determine. This UIPL is issued
to explain the amendment and its effect.
Based on information available to the
Department, only one State currently
reduces UC due to any pension
rollovers. However, all States should
review their laws regarding treatment of
E:\FR\FM\14AUN1.SGM
14AUN1
41172
Federal Register / Vol. 74, No. 156 / Friday, August 14, 2009 / Notices
rollovers to assure State law is
consistent with the amendment.
4. Amendment to Federal Law.
Section 3304(a)(15), FUTA, requires, as
a condition of employers in a State
receiving credit against the Federal
unemployment tax, that the State law
provide that the amount of UC payable
to an individual be reduced for any
week which begins in a period with
respect to which the individual is
‘‘receiving a governmental or other
pension, retirement or retired pay,
annuity, or any other similar periodic
payment which is based on the previous
work of such individual . * * *’’ This
section goes on to provide certain
exceptions to this requirement that are
not relevant here.
The Pension Protection Act of 2006
added new language to the end of
section 3304(a), FUTA, providing that
UC ‘‘shall not be reduced under
paragraph (15)’’ due to any retirement
payment ‘‘not includible in gross
income of the individual for the taxable
year in which paid because it was part
of a rollover distribution.’’ The Worker,
Retiree, and Employer Recovery Act of
2008 deleted this language, redesignated
existing provisions of section
3304(a)(15), FUTA, and added the
following new language:
mstockstill on DSKH9S0YB1PROD with NOTICES
(B) the amount of compensation shall not
be reduced on account of any payments of
governmental or other pensions, retirement
or retired pay, annuity, or other similar
payments which are not includible in the
gross income of the individual for the taxable
year in which it was paid because it was part
of a rollover distribution * * *.
5. Effect of Amendment. Prior to the
2006 amendment, States were free to
determine whether rollover
distributions would cause a reduction in
UC. (See UIPL 22–87, Change 2, which
this UIPL rescinds.) The effect of the
2006 amendment was ambiguous as it
was unclear whether it prohibited the
reduction of UC due to rollover
distributions or merely clarified that
FUTA did not require this reduction.
The 2008 amendment is clear that States
may not reduce UC due to payments
‘‘which are not includible in the gross
income of the individual for the taxable
year in which it was paid because it was
part of a rollover distribution . * * * ’’
In summary, as a result of the 2008
amendment, States are prohibited from
reducing UC due to these nontaxable
distributions; whether to reduce taxable
distributions remains a matter for the
State to determine.
Whether a rollover distribution is
‘‘not includible in the gross income of
the individual’’ for a taxable year is
determined under IRS guidelines. In
general, a distribution from an eligible
VerDate Nov<24>2008
16:27 Aug 13, 2009
Jkt 217001
retirement plan is not includible in
gross income when the taxpayer ‘‘rolls
over’’ the distribution to another eligible
retirement plan within 60 days.
Rollovers may occur in two ways. If
the distribution is rolled over directly
from one eligible retirement plan to
another, the amount will not be
includible in gross income, and FUTA
therefore prohibits reduction of UC due
to this rollover. If the distribution is
paid directly to the individual, any
amount of the requested distribution the
individual pays into a qualified
retirement plan within 60 days is not
includible in gross income, meaning
that a State may not reduce UC by that
amount. Conversely, any amount
distributed to the individual that the
individual does not timely pay into
another eligible retirement plan is
includible in gross income; States may
therefore elect to either reduce the
individual’s UC by that amount or not.
For further information on rollovers
and their tax status, see IRS Tax Topic
413—Rollovers from Retirement Plans
and IRS Publications 575 and 590.
These documents are available at
https://www.irs.gov.
As noted above, States remain free to
determine whether to reduce UC due to
a taxable distribution. If a State chooses
to reduce UC due to taxable
distributions, it must determine that a
distribution is in fact taxable. Making
this determination can be highly
technical and time consuming,
especially because the distribution’s tax
status is controlled by the 60-day
timeframe, with the result that the tax
status of the distribution may not be
known until well after the initial
payment of UC has been made.
6. Effective Date. According to section
112 of the Worker, Retiree, and
Employer Recovery Act of 2008, the
amendment ‘‘shall take effect as if
included in the provisions of’’ the
Pension Protection Act of 2006 ‘‘to
which the amendments relate.’’ Because
the Department recognizes that States
that are not able to make the change
through administrative interpretation
may need time to introduce and enact
conforming legislation to meet the
requirements of Public Law 110–458,
the Department will take no
enforcement action prior to October 31,
2009.
7. Effect of Redesignation on
Departmental Issuances. As noted
above, the Worker, Retiree, and
Employer Recovery Act of 2008
redesignated existing provisions of
section 3304(a)(15), FUTA. As a result,
the Department’s previous issuances on
this section no longer necessarily cite
the correct paragraphs, clauses, and
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
subclauses. The redesignation of these
provisions does not affect the
Department’s interpretation of the
requirements of Federal law as
contained in UIPL 22–87, its changes, or
other departmental issuances, except
that UIPL 22–87, Change 2, has been
rescinded.
8. Action. State administrators should
review existing State law provisions to
assure consistency with Federal UC law
requirements and take appropriate
action to obtain any needed legislation.
9. Inquiries. Please direct any
questions to your Regional Office.
Dated: This tenth day of August 2009.
Jane Oates,
Assistant Secretary of Labor, Employment
and Training Administration.
[FR Doc. E9–19521 Filed 8–13–09; 8:45 am]
BILLING CODE 4510–FW–P
NATIONAL FOUNDATION ON THE
ARTS AND THE HUMANITIES
National Endowment for the Arts; Arts
Advisory Panel
Pursuant to Section 10(a)(2) of the
Federal Advisory Committee Act (Pub.
L. 92–463), as amended, notice is hereby
given that three meetings of the Arts
Advisory Panel to the National Council
on the Arts will be held at the Nancy
Hanks Center, 1100 Pennsylvania
Avenue, NW., Washington, DC 20506 as
follows (ending times are approximate):
Literature (application review):
September 9–11, 2009 in Room 716. A
portion of this meeting, from 12:30 p.m.
to 1 p.m. on September 11th, will be
open to the public for policy discussion.
The remainder of the meeting, from 9
a.m. to 6:30 p.m. on September 9th and
10th, and from 9 a.m. to 12:30 p.m. and
1 p.m. to 4 p.m. on September 11th, will
be closed.
Learning in the Arts (application
review): September 15–16, 2009 in
Room 716. A portion of this meeting,
from 4 p.m. to 4:30 p.m. on September
16th, will be open to the public for
policy discussion. The remainder of the
meeting, from 9 a.m. to 5:30 p.m. on
September 15th, and from 9 a.m. to 4
p.m. and 4:30 p.m. to 5:30 p.m. on
September 16th, will be closed.
Learning in the Arts (application
review): September 21–25, 2009 in
Room 716. A portion of this meeting,
from 2:30 p.m. to 3 p.m. on September
25th, will be open to the public for
policy discussion. The remainder of the
meeting, from 9 a.m. to 6 p.m. on
September 21st through 24th and from
9 a.m. to 2:30 p.m. and 3 p.m. to 3:30
p.m. on September 25th, will be closed.
E:\FR\FM\14AUN1.SGM
14AUN1
]]>Agencies
[Federal Register Volume 74, Number 156 (Friday, August 14, 2009)]
[Notices]
[Pages 41171-41172]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19521]
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Employment and Training Administration
Treatment of Pension Rollover Distributions
AGENCY: Employment and Training Administration, Department of Labor.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Employment and Training Administration has provided
guidance to State workforce agencies on an amendment to Federal
unemployment compensation (UC) law that prohibits the reduction of UC
due to nontaxable pension rollover distributions. This continuing
guidance was issued on May 4, 2009 as UIPL No. 10-09 and is published
below to inform the public. It rescinds UIPL No. 22-87, Change 2.
SUPPLEMENTARY INFORMATION:
UIPL 10-09: Treatment of Pension Rollover Distributions
1. Purpose. To advise States of an amendment to Federal
unemployment compensation (UC) law that prohibits the reduction of UC
due to nontaxable pension rollover distributions.
2. References. Sections 3304(a)(15) of the Federal Unemployment Tax
Act (FUTA); Public Law 109-280, the Pension Protection Act of 2006;
Public Law 110-458, the Worker, Retiree, and Employer Recovery Act of
2008; Unemployment Insurance Program Letter (UIPL) 22-87 and Changes 1
(60 FR 55,604 (1995)) and 2 (68 FR 15,241 (2003)); Internal Revenue
Service (IRS) Publications 575 and 590; and IRS Tax Topic 413--
Rollovers from Retirement Plans.
3. Background. As a result of an amendment made by the Worker,
Retiree, and Employer Recovery Act of 2008, States are now prohibited
from reducing UC due to nontaxable pension rollover distributions.
Whether to reduce UC due to receipt of taxable distributions remains a
matter for the State to determine. This UIPL is issued to explain the
amendment and its effect.
Based on information available to the Department, only one State
currently reduces UC due to any pension rollovers. However, all States
should review their laws regarding treatment of
[[Page 41172]]
rollovers to assure State law is consistent with the amendment.
4. Amendment to Federal Law. Section 3304(a)(15), FUTA, requires,
as a condition of employers in a State receiving credit against the
Federal unemployment tax, that the State law provide that the amount of
UC payable to an individual be reduced for any week which begins in a
period with respect to which the individual is ``receiving a
governmental or other pension, retirement or retired pay, annuity, or
any other similar periodic payment which is based on the previous work
of such individual . * * *'' This section goes on to provide certain
exceptions to this requirement that are not relevant here.
The Pension Protection Act of 2006 added new language to the end of
section 3304(a), FUTA, providing that UC ``shall not be reduced under
paragraph (15)'' due to any retirement payment ``not includible in
gross income of the individual for the taxable year in which paid
because it was part of a rollover distribution.'' The Worker, Retiree,
and Employer Recovery Act of 2008 deleted this language, redesignated
existing provisions of section 3304(a)(15), FUTA, and added the
following new language:
(B) the amount of compensation shall not be reduced on account
of any payments of governmental or other pensions, retirement or
retired pay, annuity, or other similar payments which are not
includible in the gross income of the individual for the taxable
year in which it was paid because it was part of a rollover
distribution * * *.
5. Effect of Amendment. Prior to the 2006 amendment, States were
free to determine whether rollover distributions would cause a
reduction in UC. (See UIPL 22-87, Change 2, which this UIPL rescinds.)
The effect of the 2006 amendment was ambiguous as it was unclear
whether it prohibited the reduction of UC due to rollover distributions
or merely clarified that FUTA did not require this reduction. The 2008
amendment is clear that States may not reduce UC due to payments
``which are not includible in the gross income of the individual for
the taxable year in which it was paid because it was part of a rollover
distribution . * * * '' In summary, as a result of the 2008 amendment,
States are prohibited from reducing UC due to these nontaxable
distributions; whether to reduce taxable distributions remains a matter
for the State to determine.
Whether a rollover distribution is ``not includible in the gross
income of the individual'' for a taxable year is determined under IRS
guidelines. In general, a distribution from an eligible retirement plan
is not includible in gross income when the taxpayer ``rolls over'' the
distribution to another eligible retirement plan within 60 days.
Rollovers may occur in two ways. If the distribution is rolled over
directly from one eligible retirement plan to another, the amount will
not be includible in gross income, and FUTA therefore prohibits
reduction of UC due to this rollover. If the distribution is paid
directly to the individual, any amount of the requested distribution
the individual pays into a qualified retirement plan within 60 days is
not includible in gross income, meaning that a State may not reduce UC
by that amount. Conversely, any amount distributed to the individual
that the individual does not timely pay into another eligible
retirement plan is includible in gross income; States may therefore
elect to either reduce the individual's UC by that amount or not.
For further information on rollovers and their tax status, see IRS
Tax Topic 413--Rollovers from Retirement Plans and IRS Publications 575
and 590. These documents are available at https://www.irs.gov.
As noted above, States remain free to determine whether to reduce
UC due to a taxable distribution. If a State chooses to reduce UC due
to taxable distributions, it must determine that a distribution is in
fact taxable. Making this determination can be highly technical and
time consuming, especially because the distribution's tax status is
controlled by the 60-day timeframe, with the result that the tax status
of the distribution may not be known until well after the initial
payment of UC has been made.
6. Effective Date. According to section 112 of the Worker, Retiree,
and Employer Recovery Act of 2008, the amendment ``shall take effect as
if included in the provisions of'' the Pension Protection Act of 2006
``to which the amendments relate.'' Because the Department recognizes
that States that are not able to make the change through administrative
interpretation may need time to introduce and enact conforming
legislation to meet the requirements of Public Law 110-458, the
Department will take no enforcement action prior to October 31, 2009.
7. Effect of Redesignation on Departmental Issuances. As noted
above, the Worker, Retiree, and Employer Recovery Act of 2008
redesignated existing provisions of section 3304(a)(15), FUTA. As a
result, the Department's previous issuances on this section no longer
necessarily cite the correct paragraphs, clauses, and subclauses. The
redesignation of these provisions does not affect the Department's
interpretation of the requirements of Federal law as contained in UIPL
22-87, its changes, or other departmental issuances, except that UIPL
22-87, Change 2, has been rescinded.
8. Action. State administrators should review existing State law
provisions to assure consistency with Federal UC law requirements and
take appropriate action to obtain any needed legislation.
9. Inquiries. Please direct any questions to your Regional Office.
Dated: This tenth day of August 2009.
Jane Oates,
Assistant Secretary of Labor, Employment and Training Administration.
[FR Doc. E9-19521 Filed 8-13-09; 8:45 am]
BILLING CODE 4510-FW-P
