In Notice 2010-55, the tax agency said the anticipated guidance could deal with topics such as:
- calculation of the alternative amortization schedules permitted under PRA (and the effect on funding balances);
- the rules relating to installment acceleration amounts under § 430(c)(7);
- the procedures for making the election to use an alternative amortization schedule; and
- the notice requirements of § 430(c)(2)(D)(vi).
According to the IRS, in the case of a plan year that ends before the guidance is issued, the plan sponsor will be permitted to elect to use an alternative amortization schedule under PRA without regard to whether the Form 5500 (and Schedule SB) has been filed for that plan year. For example, the tax agency noted, the sponsor of a plan with a calendar year plan year will not be precluded from making the election for 2009 merely because the Form 5500 for that plan year has been filed for that plan year.
Accordingly, such a plan sponsor should file the Form 5500 (and Schedule SB) in accordance with the applicable deadline, taking into account the rules for obtaining an extension.
The future guidance will address reporting requirements if the plan’s Form 5500 (and Schedule SB) for the plan year has been filed, the IRS document said. The IRS document is at http://www.irs.gov/pub/irs-drop/n-10-55.pdf.
President Obama signed the PRA earlier this year in an effort to give plan sponsors relief from often-severe losses sustained during the economic downturn (see Obama Signs Pension Relief Bill). While the final version of the measure may not have been perfect, two industry observers said afterward that sponsors should still be relatively satisfied with the outcome. (see Pension Funding Relief Seen as Best Under the Circumstances).