26 CFR Parts 1 and 54 [REG-108508-08] RIN 1545-BH71 Treasury Regulation - REG-108508-08 - Determination of Minimum Required Pension Contributions Proposed regulations under section 4971 of the Code provide guidance on the excise tax for failure to make certain required pension funding contributions. The regulations reflect changes made to section 4971 by the Pension Protection Act of 2006. A public hearing is scheduled for August 4, 2008. The Treasury Department and the IRS issued proposed regulations to provide employers with funding guidance for single-employer defined benefit plans:
April 11, 2008
HP-918
Treasury, IRS Issue Funding Guidance for Single-Employer Defined Benefit Plans
Washington, DC--The Treasury Department and the Internal Revenue Service issued today proposed regulations under section 430 of the Internal Revenue Code that provide employers sponsoring single-employer defined benefit plans with guidance regarding the determination of minimum required contributions under the new funding rules enacted as part of the Pension Protection Act of 2006.
The proposed regulations, together with three earlier sets of proposed regulations, enable plan sponsors to determine the contribution requirements that apply to their defined benefit plans under the new funding regime, including the application of the quarterly contribution requirements.
Although the new funding rules are generally effective for plan years beginning on or after January 1, 2008, these regulations are proposed to be effective for plan years beginning on or after January 1, 2009. Plan sponsors, however, can rely on the proposed regulations for purposes of satisfying the minimum funding requirements for plan years beginning in 2008.
On December 19, 2007, the Senate passed an amended version of the Pension Protection Technical Corrections Act of 2007 and on March 13, 2008, the House of Representatives passed similar legislation. These proposed regulations, like the earlier proposed regulations, do not reflect those technical corrections. After technical corrections are enacted, the regulations will be modified to reflect the new provisions.
The IRS released Employee Plans News - Special Edition, April 2008, which also announced the proposed regulations:
The Treasury Department and the Internal Revenue Service issued today proposed regulations under section 430 of the Internal Revenue Code that provide employers sponsoring single-employer defined benefit plans with guidance regarding the determination of minimum required contributions under the new funding rules enacted as part of the Pension Protection Act of 2006.
The proposed regulations, together with three earlier sets of proposed regulations, enable plan sponsors to determine the contribution requirements that apply to their defined benefit plans under the new funding regime, including the application of the quarterly contribution requirements.
IRC Section 430 and Related Regulations
Here are links to the series of regulations issued by the IRS to provide guidance regarding IRC Section 430 - Minimum Funding Standards for Single-Employer Defined Benefit Pension Plans:
- Treasury Regulation - REG-108508-08 - Determination of Minimum Required Pension Contributions - Proposed regulations under section 4971 of the Code provide guidance on the excise tax for failure to make certain required pension funding contributions. The regulations reflect changes made to section 4971 by the Pension Protection Act of 2006. A public hearing is scheduled for August 4, 2008.
- Treasury Regulation - REG-139236-07 - Measurement of Assets and Liabilities for Pension Funding Purposes - Proposed regulations under section 430 of the Code provide guidance on the valuation of plan assets and the determination of benefit liabilities for purposes of the funding requirements that apply to single employer defined benefit plans pursuant to changes made by the Pension Protection Act of 2006. This guidance covers the determination of the plan’s funding target and normal cost, rules regarding the plan’s valuation date, the determination of the actuarial value of plan assets, rules regarding interest rates applied for minimum funding purposes, and special rules for at-risk plans.
- Treasury Regulation - REG-113891-07 - 72 Fed. Reg. 50544 (August 31, 2007) - Notice of Proposed Rulemaking Benefit Restrictions for Underfunded Pension Plans - Proposed regulations under section 436 of the Code provide guidance regarding benefit restrictions for certain underfunded defined benefit pension plans and regarding the use of certain funding balances maintained for defined benefit pension plans. [HTML] [PDF]
- Treasury Regulation - REG-143601-6 - 72 Fed. Reg. 29456 (May 29, 2007) – Notice of Proposed Rulemaking Mortality Tables for Determining Present Value - Proposed regulations under section 430 of the Code provide generally applicable mortality tables to be used in determining present value or making any computation for purposes of applying the minimum funding requirements for single employer qualified defined benefit pension plans pursuant to changes made by the Pension Protection Act of 2006 (Pub. L. No. 109-280). The regulations also provide guidance regarding an employer’s request to use its own plan-specific mortality tables. [HTML] [PDF]
- Treasury Regulation - REG-108508-08 - Determination of Minimum Required Pension Contributions [PDF]
- 2008-19 I.R.B. 923 (May 12, 2008)
- IRS Issues Plan Valuation Regulations For Single-Employer Defined Benefit Plans
- Getting PPA Funding Right
- Use of Credit Balance to Satisfy Quarterly Contribution Requirements May Have Unintended Consequences
- Effective Dates for Code Section 430 and the Code Section 430 Regulations
- More Proposed Regs Released for New Code section 430
- Quarterly contribution requirements and credit balances
- IRS Proposes Regs On Minimum Funding Contributions For Single-Employer Plans
- IRS issues proposed regs on minimum required contributions under PPA
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