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Compliance December 20, 2010
IRS Publishes Guidance on DB Funding Relief
The Internal Revenue Service (IRS) has published guidance on the special rules on funding relief for single-employer defined benefit plans.
Reported by PLANADVISER staff
Noting that the guidance also applies to multiple employer defined benefit pension plans, in Notice 2011-3, the IRS offers guidance on those special rules on funding relief under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.
The guidance contains a series of questions and answers on the following topics:
* General rules
* Installment acceleration amounts
* Excess compensation amounts
* Excess shareholder payment amounts
* Mergers and acquisitions
* Elections to use an alternative amortization schedule
* Notification to participants, beneficiaries, and the PBGC
* Eligible charity plans
* Reporting requirements
* Transition rules
Notice 2011-3 will be published in Internal Revenue Bulletin 2011-2 on Jan. 10, 2011. You can read the notice at http://www.irs.gov/pub/irs-drop/n-11-03.pdf