Pension Protection Act Blog

The effective dates for the Code section 430 regulations are an interesting mix.
Congress made new Code section 430 effective to plan years beginning after December 31, 2007. With the Pension Protection Act being enacted into law on August 17, 2006, implementing regulations to encompass the changes made by Code section 430 by December 31, […]

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When Congress created new Code section 430 in Section 112 the Pension Protection Act in 2006, the impact of this new Code section was not immediately clear. The IRS has now provided a clear statement on their belief of the impact of new Code section 430 with the latest installment of proposed regulations for […]

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Common language contained somewhere in most qualified plan documents is the definition of spouse. Within that definition can be the requirement that a participant must be married for a period of one year before the spouse is recognized by the plan as the participant’s spouse. In a recent case from the 5th Circuit […]

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The U.S. Supreme Court has denied Rohm & Haas’ petition for writ of certiorari. On theOrder List for March 17th, the Court stated:

“07-906 ROHM AND HAAS PENSION V. WILLIAMS, GARY
The motion of Chamber of Commerce of the United States of
America for leave to file a brief as amicus curiae is granted.
The motion of National […]

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The IRS has issued Notice 2008-29, which permits the mortality tables from Rev. Rul. 96-7 for individuals who are entitled to benefits under a qualified defined benefit pension plan on account of disability until further guidance is issued. The rules of Rev. Rul. 96-7 on determining whether a benefit is payable on account of […]

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Today, among several items released by the IRS, is guidance on QOSAs. QOSAs are Qualified Optional Survivor Annuities. Section 1004 of the Pension Protection Act amended Code section 417 to require that plans subject to Code section 401(a)(11) must offer participants a specific optional form of benefit as an alternative to a Qualified Joint & […]

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On Friday, the IRS issued Revenue Ruling 2008-7, discussing the backloading rules for pension plans and Code section 411(b)(1). In 21 pages, the IRS provides an analysis of a traditional pension plan which converted into a cash balance pension plan prior to the effective date of the new conversion requirements under the Pension Protection […]

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One of my favorite actuaries called me today about the meaning of this paragraph in the new Proposed Regulations on the Measurement of Assets and Liabilities for Pension Funding Purposes, released by the IRS on December 28, 2007. The paragraph is:
I. Overview. These proposed regulations are the third in a series of […]

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The 1st Circuit Court of Appeals has delivered a very interesting opinion involving a grab bag of cash balance conversion issues. In Gillis v. SPX Corp. Individual Acct Retirement Plan, No. 07-1777 (Dec. 19, 2007), the 1st Circuit affirmed the district court’s granting of summary judgment in favor of the plan sponsor, stating that […]

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Just in time for the New Year, the IRS has released two major pieces of guidance in the form of proposed regulations. The first is Proposed Regulations on Hybrid Plans, providing guidance on changes made to cash balance plans by the Pension Protection Act and recent litigation. The release of this guidance is […]

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