FROM THE OFFICE OF PUBLIC AFFAIRS
To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®.
August 19, 2004
JS-1862
Treasury Issues Guidance On Funding Requirements For Employers Who Elected Funding Relief
The Treasury Department and IRS issued Notice 2004-59 providing guidance on the special funding rules that apply to pension plans sponsored by airlines, steel companies and others that are making the alternative deficit reduction contribution election provided for under the Pension Funding Equity Act of 2004. This Notice is in addition to the previously issued Announcements 2004-38, 2004-43 and 2004-51 that set forth the procedures and timing with respect to this election.
The Pension Funding Equity Act generally prohibits benefit improvements under a plan that makes the alternative deficit reduction contribution election, but provides for certain exceptions. One exception is where the plan's enrolled actuary certifies that the amendment provides for an increase in annual contributions that will exceed the increase in annual minimum funding requirements for the plan attributable to the plan amendment. Notice 2004-59 provides rules for the application of this exception.
A copy of Notice 2004-59 is attached
- 30 -
REPORTS