In the midst of the season when plan sponsors are finalizing year-end amendments to retirement plans, the Internal Revenue Service (IRS) provides relief in Notice 2010-77 for amendments regarding two sets of requirements for defined benefit plans. This IRS Notice extends the deadline for amending qualified defined benefit pension plans to meet the requirements of:

    • The funding-based limits on benefits and benefit accruals under Sections 401(a)(29) and 436 of the Internal Revenue Code of 1986, as amended (the Code); and
    • The vesting and other special rules under Sections 411(a)(13) (other than Section 411(a)(13)(A)) and 411(b)(5) of the Code that apply to certain hybrid defined benefit plans.

The deadline for plan sponsors to adopt these amendments to qualified defined benefit plans is now the last day of the first plan year that begins on or after January 1, 2011 (which means December 31, 2011, for calendar year plans). Plan sponsors must nevertheless continue to operate their plans in compliance with these requirements.

Click on the PDF link above to view the full alert.

Source: Employee Benefits & Executive Compensation Alert
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