IRS Publishes Guidance on DB Funding Relief

The Internal Revenue Service (IRS) has published guidance on the special rules on funding relief for single-employer defined benefit plans.

Noting that the guidance also applies to multiple employer defined benefit pension plans, in Notice 2011-3, the IRS offers guidance on those special rules on funding relief under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.

The guidance contains a series of questions and answers on the following topics:

    * General rules
    * Installment acceleration amounts
    * Excess compensation amounts
    * Excess shareholder payment amounts
    * Mergers and acquisitions
    * Elections to use an alternative amortization schedule
    * Notification to participants, beneficiaries, and the PBGC
    * Eligible charity plans
    * Reporting requirements
    * Transition rules

Notice 2011-3 will be published in Internal Revenue Bulletin 2011-2 on Jan. 10, 2011.  You can read the notice at