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CCH® PENSION — 12/14/10

Deadline For Amending Defined Benefit Plans Extended To Plans Years Beginning On Or After Jan. 1, 2011

from Spencer’s Benefits Reports: The deadline for amending defined benefit plans to conform with the requirements of the Pension Protection Act or 2006 (PPA), the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), and the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (PRA) has been extended to the last day of the first plan year that begins on or after Jan. 1, 2011.

Prior to this extension, the deadline for adopting certain defined benefit plan amendments was the last day of the first plan year beginning on or after Jan. 1, 2010, as specified in Notice 2010-77, I.R.B. 2009-52, 972.

In Notice 2010-77, I.R.B. 2010-51, the Internal Revenue Service states that the extension applies to the deadline for amending:

Notice 2010-77 also applies for the purpose of a plan’s eligibility for the relief from the requirements of IRC Sec. 411(d)(6) described in Notice 2009-97.

The Notice reminds practitioners that a plan must continue to satisfy the operational compliance requirements of PPA Sec. 1107, as a condition of the extension of the deadline for adopting plan amendments provided by this notice.

An interim plan amendment that eliminates or reduces a Sec. 411(d)(6) protected benefit in order to meet the requirements of IRC Secs. 401(a)(29) and 436 will not cause the plan to fail if the amendment is adopted by the last day of the first plan year that begins on or after Jan. 1, 2011.

Notice 2010-77 points out that determination letter requests submitted before Feb. 1, 2012, will not take into account the requirements of Secs. 401(a)(29) and 436. In addition, determination letter requests submitted after Jan. 31, 2011, will take into account the requirements of IRC Secs. 411(a)(13) and 411(b)(5) including the final regulations for those sections, but not the proposed regulations.

Questions regarding this notice may be sent to James P. Flannery of the Employee Plans, Tax Exempt, and Government Entities Division at retirementplanquestions@irs.gov.

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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