2009-12-18
On November 24, 2009, the Internal Revenue Service (IRS) issued final regulations on the notice requirements in Section 204(h) of ERISA and Section 4980F of the Internal Revenue Code.

These provisions require a plan administrator to notify participants and alternate payees about an amendment to a qualified pension plan that significantly reduces the rate of future benefit accruals or an early retirement benefit or retirement-type subsidy.

The regulations provide guidance on the timing of a Section 204(h) notice where a plan is being amended retroactively. The regulations also address a number of miscellaneous provisions included in the Pension Protection Act of 2006. Except for a few minor changes, the final rules follow proposed regulations issued in March 2008.

The Hewitt bulletin linked to at right provides a detailed discussion of the final rules.

BACK
Legislative Updates