IRS semiannual regulatory agenda includes guidance on funding rules, hybrid plans, longevity annuity contracts

The IRS has released its semiannual regulatory agenda for Spring 2013, which includes pension and benefit regulations that are currently under development or review.

Proposed rule stage

Among the items in the IRS’s proposed rule stage are:

· Guidance relating to governmental plans and Indian tribal government plans.
· Guidance relating to multiemployer plans that are in either endangered or critical status.
· Additional guidance regarding the determination of plan assets and benefit liabilities for purposes of the funding requirements that apply to single-employer defined benefit plans, the use of certain funding balances maintained for those plans, and the benefit restrictions for certain underfunded defined benefit pension plans.
· Guidance on eligible combined plans under Code Sec. 414(x).
· Modification to the minimum present value requirements applicable to certain defined benefit pension plans.
· Guidance on the requirement for plan administrators or employers to file on magnetic media statements, returns, or reports.

Final rule stage

The items in the IRS’s final rule stage include the following:

· Additional guidance regarding the rules for hybrid plans that were added by the Pension Protection Act of 2006 (PPA; P.L. 109-280).
· Regulations providing relief from the 3% mandatory nonelective contribution requirement in safe harbor 401(k) plans.
· Special rules for qualifying longevity annuity contracts.
· Modification to the rules regarding the minimum present value requirements that apply to certain distributions from qualified defined benefit retirement plans in order to facilitate certain annuity distributions and to reflect statutory changes to the applicable requirements.

Source: The IRS Agenda for Spring 2013.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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