IRS Publishes Guidance on DB Funding Relief

December 20, 2010 ( - 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