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CCH® PENSION — 02/14/12

IRS semiannual regulatory agenda includes additional guidance on funding rules, hybrid plans

The IRS has released its semiannual regulatory agenda for Fall 2011, 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 multiemployer plans that are in either endangered or critical status.
• Special rules regarding Indian tribal government plans.
• 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).
• Removal of the rollover allocation rule from the regulations on designated Roth accounts.

Final rule stage

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

• Definition of "highly compensated employees."
• Regulations providing guidance on the application of the accrual rules for defined benefit plans in cases where plan benefits are determined on the basis of the greater of two or more separate formulas.
• Additional guidance regarding the rules for hybrid plans that were added by the Pension Protection Act of 2006.
• Regulations providing relief from the 3% mandatory nonelective contribution requirement in safe harbor 401(k) plans.

Source: IRS Agenda for Fall 2011, www.Reginfo.gov.

For more information, visit http://www.wolterskluwerlb.com/rbcs.

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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