IRS Provides Details for Airline Relief

November 22, 2006 (PLANSPONSOR.com) - The Internal Revenue Service (IRS) has issued Notice 2006-105 providing procedures for electing an alternative deficit reduction contribution for airline employers given an extension of the election by the Pension Protection Act of 2006.

The notice details information that must be included in the election and the IRS address to which the election should be sent. In addition, the notice reminds employers electing an alternative deficit reduction contribution for any plan year that they must provide written notice of the election to plan participants, beneficiaries and the Pension Benefit Guaranty Corporation (PBGC) within 30 days of filing the election.

The notice applies to employers identified as eligible for the reduced contributions under Section 412 of the Employee Retirement Income Security Act (ERISA), which includes a commercial passenger airline or an employer primarily engaged in the production or manufacture of a steel mill product or the processing of iron ore pellets. Section 412 allowed for the election of a reduced contribution for plan years beginning after December 27, 2003, and before December 28, 2005.

Section 402(i) of the Pension Protection Act of 2006 extended this relief to airlines for any plan year beginning after December 27, 2003, and before December 28, 2007. Notice 2006-105 also gives deadlines for which notice of the election will be deemed timely.

The notice is here .

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