Category Archives: Defined Benefit

7th Circuit’s Decision on COLAs in Defined Benefit Case Will Not Be Reviewed by High Court

Posted on March 20, 2008 by Administrator

The U.S. Supreme Court has denied Rohm & Haas’ petition for writ of certiorari. On theOrder List for March 17th, the Court stated: “07-906 ROHM AND HAAS PENSION V. WILLIAMS, GARY The motion of Chamber of Commerce of the United … Continue reading →

Posted in Defined Benefit, Litigation | 2 Comments

Notice 2008-29 Permits Continued Reliance on Rev. Rul. 96-7 for Disability Mortality Tables

Posted on March 12, 2008 by Administrator

The IRS has issued Notice 2008-29, which permits the mortality tables from Rev. Rul. 96-7 for individuals who are entitled to benefits under a qualified defined benefit pension plan on account of disability until further guidance is issued. The rules … Continue reading →

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IRS Provides Guidance on Qualified Optional Survivor Annuities (QOSAs)

Posted on March 5, 2008 by Administrator

Today, among several items released by the IRS, is guidance on QOSAs. QOSAs are Qualified Optional Survivor Annuities. Section 1004 of the Pension Protection Act amended Code section 417 to require that plans subject to Code section 401(a)(11) must offer … Continue reading →

Posted in Cash Balance, Defined Benefit, Distributions, IRS | Leave a comment

IRS Discusses 3 Accrual Rules of 411(b)(1) in Rev. Rul. 2008-7

Posted on February 3, 2008 by Administrator

On Friday, the IRS issued Revenue Ruling 2008-7, discussing the backloading rules for pension plans and Code section 411(b)(1). In 21 pages, the IRS provides an analysis of a traditional pension plan which converted into a cash balance pension plan … Continue reading →

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Three Out of Four: The New Proposed Regs on Funding Requirements for DB Plans

Posted on January 3, 2008 by Administrator

One of my favorite actuaries called me today about the meaning of this paragraph in the new Proposed Regulations on the Measurement of Assets and Liabilities for Pension Funding Purposes, released by the IRS on December 28, 2007. The paragraph … Continue reading →

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Decision in Cash Balance Conversion Case May Have Missed the Boat

Posted on January 2, 2008 by Administrator

The 1st Circuit Court of Appeals has delivered a very interesting opinion involving a grab bag of cash balance conversion issues. In Gillis v. SPX Corp. Individual Acct Retirement Plan, No. 07-1777 (Dec. 19, 2007), the 1st Circuit affirmed the … Continue reading →

Posted in Cash Balance, Defined Benefit, Litigation | 3 Comments

IRS Rings in the New Year with New Cash Balance Regs and DB Lump Sum Regs

Posted on December 31, 2007 by Administrator

Just in time for the New Year, the IRS has released two major pieces of guidance in the form of proposed regulations. The first is Proposed Regulations on Hybrid Plans, providing guidance on changes made to cash balance plans by … Continue reading →

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Close but no Cigar on PPA Technical Corrections Act of 2007

Posted on December 20, 2007 by Administrator

Last night, Congress adjoined without acting on H.R. 3361, the House of Representative’s version of the Pension Protection Technical Corrections Act of 2007. The Senate passed S. 1974, the Senate version of the Pension Protection Technical Corrections Act of 2007. … Continue reading →

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Guidance for Terminations and Lump Sum Distributions Straddling January 1st, 2008

Posted on December 4, 2007 by Administrator

For plan years beginning on or after January 1, 2008, the Pension Protection Act amended Code section 417(e)(3), changing the applicable interest rate and applicable mortality table. For single employer defined benefit plans terminating before January 1, 2008, this change … Continue reading →

Posted in Defined Benefit, Distributions | 1 Comment

IRS Issues Guidance on Code section 430

Posted on October 10, 2007 by Administrator

The IRS released Notice 2007-81, which provides guidance on the corporate bond yield curve and the segment rates required to compute the funding target and other items under Code section 430. This notice implements changes made by sections 101, 102, … Continue reading →

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