Retroactive Application of US v Windsor

SIFMA and 12 other associations provide comments to the U.S. Department of Treasury and the Internal Revenue Service (IRS) on the recent IRS Revenue-Ruling 2013-17, which provided much needed clarification to plan sponsors, administrators and others, in response to the U.S. Supreme Court’s decision in U.S. v. Windsor (Windsor).

Given the numerous and complex administrative problems associated with the potential retroactive application of Windsor to retirement plans, the groups strongly recommend that the IRS utilize its authority to limit the extent of the decision’s retroactivity.  Specifically, the groups recommend that the IRS issue further guidance providing it will not disqualify a retirement plan as a result of the plan’s failure to administratively comply with the above Revenue Ruling prior to its September 16, 2013 effective date.  Such guidance would be consistent with the Court’s holding in Central Laborers Pension Fund v. Heinz.

SIFMA signed this letter with: the American Council of Life Insurers (ACLI), the ERISA Industry Committee, the ESOP Association, the Financial Services Institute, Inc. (FSI), The Financial Services Roundtable (FSR), the Insured Retirement Institute (IRI), the Investment Company Institute (ICI), the Plan Sponsor Council of America (PSCA), the Small Business Council of America, the Society for Human Resource Management, the Spark Institute, Inc., and the U.S. Chamber of Commerce.