Treasury Regulation - REG–104946–07 - Hybrid Retirement Plans

26 CFR Part 1

[REG–104946–07]

RIN 1545–BG36

Treasury Regulation - [REG–104946–07] - Hybrid Retirement Plans

Proposed regulations provide guidance under sections 411(a)(13) and 411(b)(5) of the Code, which were added by the Pension Protection Act of 2006. Section 411(a)(13) provides rules relating to vesting and payment of benefits that must be satisfied in order for hybrid defined benefit plans to be tax-qualified. Section 411(b)(5) provides age discrimination rules for tax-qualified defined benefit plans, including hybrid defined benefit plans.

The Treasury and the IRS issued proposed regulations for cash balance and other hybrid pension plans:

IR-2007-211, Dec. 28, 2007

WASHINGTON — The Treasury Department and Internal Revenue Service (IRS) issued proposed regulations relating to cash balance plans and other hybrid pension plans. The proposed regulations would interpret rules that were added to the tax law by the Pension Protection Act of 2006 (PPA), including an age discrimination safe harbor for hybrid pension plans, conversion protection for employees, and a 3-year minimum vesting requirement. The proposed regulations would also apply for purposes of the parallel rules that were added by PPA to the Employee Retirement Income Security Act of 1974 (ERISA).The regulations are generally proposed to be effective for plan years beginning on and after Jan. 1, 2009. For periods before the effective date of these regulations, a plan must comply with the new PPA statutory provisions. During these periods, a plan is permitted to rely on the regulations for purposes of satisfying the new PPA statutory provisions.

Related Links:

• REG 104946–07 - 72 Fed. Reg 73680 (December 28, 2007) [PDF]
• Treasury Regulation - [REG–104946–07], 2008-11 I.R.B. 596 (March 17, 2008) - Hybrid Retirement Plans [HTML]
• 2008-11 I.R.B. 596 (March 17, 2008)
• Treasury Regulation REG-104946-07 – Hybrid Retirement Plans; Correction

• Highlights of Proposed Rules for Hybrid Plans
• IRS Publishes Proposed Regulations for Hybrid Plans
• IRS Proposes Cash Balance Regulations
• IRS Proposes Regulations on PPA Requirements for Hybrid Plans
• IRS Proposes Rule view]s for Cash Balance and Other Hybrid Pension Plans
• Proposed cash balance/hybrid plan regs issued by IRS
• New IRS Proposed Regulations on Cash Balance and Other Hybrid Plans
• IRS Issues Proposed Regulations on Hybrid Plans
• IRS Proposes Hybrid Plan And Pension Asset Rules
• IRS Rings in the New Year with New Cash Balance Regs and DB Lump Sum Regs
• GRIST Alert: IRS proposes regulations on new PPA rules for cash balance and other hybrid plans
• Proposed Regulations on Cash Balance Defined Benefit Plans Released (NPRM REG-104946-07)