Last week the IRS issued Notice 2011-96, which extended (to Dec. 31, 2012, or later) the deadline for amending defined benefit pension plans to comply with Code Section 436. The notice also provided sample plan amendment language.
Background
The Pension Protection Act of 2006 added Section 436 to the Internal Revenue Code. Section 436 provides a series of limitations on the accrual and benefit payments associated with an underfunded defined benefit pension plan, and is generally effective for plan years that begin on or after Jan. 1, 2008. Delayed effective dates may apply to plans subject to collective bargaining agreements and plans sponsored by certain tax exempt organizations (“eligible charity plans”).
Please see full publication below for more information.
