Employee Benefits & Pensions
Current Developments in Employee Benefits and Pensions (Part II) - footnotes
28 TD 9325 (5/22/07).
29 The Pension Protection Act of 2006, P.L. 109-280 (PPA ’06), established new Sec. 401(a)(36), which provides that a pension plan does not fail to satisfy the tax qualification rules solely because it permits distributions to employees who are at least 62 years old and still working. This provision is effective for plan years beginning after December 31, 2006.
30 The final regulations amend Regs. Sec. 1.401(a)-1 to incorporate the new Sec. 401(a)(36) rule permitting in-service distributions beginning at age 62 and to adopt the basic rule from the proposed regulations (REG-114726-04) permitting in-service distributions on attainment of the plan’s normal retirement age. The final regulations also establish rules for setting a plan’s normal retirement age.
31 Pension Protection Act of 2006, Section 905(b), P.L. 109-280 (2006).
32 Regs. Sec. 1.401(a)-1(b)(2).
33 Notice 2007-69, 2007-35 IRB 468.
34 Regs. Sec. 1.401(b)-1 and Notice 2007-69.
35 TD 9324 (4/30/07).
36 TD 9340 (7/26/07).
37 29 CFR §2510.3-2(f).
38 TD 9319 (4/5/07).
39 Regs. Sec. 1.409(p)-1.
40 Central Laborers’ Pension Fund v. Heinz, 541 US 739 (2004).
41 Notice 2007-7, 2007-5 IRB 395.
42 Notice 2006-107, 2006-51 IRB 114.
43 Notice 2007-6, 2007-3 IRB 272.
44 Regs. Sec. 1.411(d)-2(b)(1).
45 Matz v. Household Int’l Tax Reduction Inv. Plan, 388 F3d 570 (7th Cir. 2004), further proceedings, 232 FRD 593 (N.D. Ill. 2005), aff’d sub. nom. In re Household Int’l Tax Reduction Plan, 441 F3d 500 (7th Cir. 2006).
46 Rev. Rul. 2007-43, 2007-28 IRB 45.
47 Cf. Halliburton Co., 100 TC 216 (1993), aff’d per curiam, 25 F3d 1043 (5th Cir.), cert. den., 513 US 989 (1994).
48 Notice 2007-28, 2007-14 IRB 880.
49 Rev. Proc. 2007-44, 2007-28 IRB 54.
50 Rev. Proc. 2005-66, 2005-2 CB 509.
51 Rev. Proc. 2007-37, 2007-25 IRB 1433.
52 On February 1, 2007, the IRS issued final regulations to update the mortality tables that sponsors must use to determine current liability under the deficit reduction contribution requirements of Sec. 412(l) and ERISA §302(d) (TD 9310 (2/2/07)). However, the final regulations will be relevant to most single-employer plans only for the 2007 plan year because PPA ’06’s new minimum-funding requirements will begin taking effect in 2008.
53 72 Fed. Reg. 60452 (10/24/07).
