2008-08-13
On August 6, 2008, the Treasury Department and Internal Revenue Service (IRS) released guidance which prevents certain transactions in which an employer transfers a qualified pension plan to an unrelated entity and the transfer is not connected with a transfer of significant business assets, operations, or employees.
Revenue Ruling 2008-45 is important news for the U.S. private pension system, as it influences the risk management solution set available to plan sponsors (at least in the near term). In the press release accompanying Revenue Ruling 2008-45, the administration provides a framework for the development of legislation that could permit pension transfer transactions in the future.
 
The Hewitt Consulting bulletin linked to at right provides an overview of Revenue Ruling 2008-45 and explores the potential impact of the ruling on plan sponsors.

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