IRS Publishes Guidance on DB Funding Relief

December 20, 2010 (PLANSPONSOR.com) - The Internal Revenue Service has published guidance on the special rules on funding relief for single-employer defined benefit plans. 

Noting that the guidance also applies to multiple employer defined benefit pension plans, in Notice 2011-3, the IRS offers guidance on those special rules on funding relief under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.

The guidance contains a series of questions and answers on the following topics:

• General rules
• Installment acceleration amounts
• Excess compensation amounts
• Excess shareholder payment amounts
• Mergers and acquisitions
• Elections to use an alternative amortization schedule
• Notification to participants, beneficiaries, and the PBGC
• Eligible charity plans
• Reporting requirements
• Transition rules

Notice 2011-3 will be published in Internal Revenue Bulletin 2011-2 on Jan. 10, 2011.  You can read the notice at http://www.irs.gov/pub/irs-drop/n-11-03.pdf

PLANSPONSOR staff
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