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CCH® PENSION — 03/25/11

1,176 New DB Plans And 5,098 401(k) Plans Approved By The IRS In Fiscal 2010

from Spencer’s Benefits Reports: The Internal Revenue Service issued approved determination letters to 1,176 new defined benefit plans covering 483,455 participants and 6,747 defined contribution plans covering 1,069,095 participants during the fiscal year ending Sept. 30, 2011. There were 5,098 new 401(k) plans covering 349,492 participants included in the 6,747 defined contribution plan total, the IRS reported in the Internal Revenue Service Data Book, 2010.

There were 1,123 terminated defined benefit plans during the same period covering 74,346 participants, resulting in a net gain of 53 qualified defined benefit plans during the 2010 fiscal year. Defined contribution plans experienced a net gain of 5,207 qualified defined contribution plans; 1,540 defined contribution plans were terminated covering 116,619 participants. Less than half of the terminated defined contribution plans (736) were 401(k) plans covering 62,828 participants.

Profit-sharing plans experienced a net growth of 540 plans (1,344 new plans versus 804 terminated plans), while money purchase pension plans experienced a net growth of 19 plans (181 new plans versus 162 terminated plans). Only non-leveraged employee stock ownership plans experienced a net decline—41 plans (37 new plans versus 78 terminated plans).

The IRS approved amendments to 26,828 plans covering 13,844,239 participants. Of that total, 1,963 were defined benefit plans covering 5,998,101 participants and 24,865 were defined contribution plans covering 7,846,138 participants. The defined contribution total includes 15,873 amended 401(k) plans covering 4,185,830 participants.

For more information, visit http://www.irs.gov/newsroom/article/0,,id=237393,00.html.

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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