On November 5, 1975, the Department of Labor (the ``Department'')
and the Internal Revenue Service (the ``Service'') announced the
publication of a compendium of authoritative rules (hereinafter referred
to as the ``ERISA Guidelines'') relating to ERISA requirements. See
T.I.R. No. 1415 (November 5, 1975) issued by the Service. These rules
were published in recognition of the need to provide an immediate and
complete set of interim guidelines to facilitate (1) adoption of new
employee pension benefit plans (hereinafter referred to as ``plans''),
and (2) prompt amendment of existing plans, in conformance with the
applicable requirements of the Employee Retirement Income Security Act
of 1974 (``ERISA'') pending the issuance of final regulations or other
rules. These rules govern the application of (1) the qualification
requirements of the Internal Revenue Code of 1954 (the ``Code'') added
or amended by ERISA, and (2) the requirements of the provisions of parts
2 and 3 of title I of ERISA paralleling such qualification requirements
(both such sets of requirements hereinafter referred to collectively as
the ``new qualification requirements'').
The ERISA Guidelines incorporate by reference the documents relating
to the new qualification requirements heretofore published by the
Department and by the Service as temporary or proposed regulations,
revenue rulings, revenue procedures, questions and answers, technical
information releases, and other issuances. The ERISA Guidelines also
incorporate additional documents published on November 5, 1975, or to be
published forthwith, which are necessary to complete the interim
guidelines relating to the new qualification requirements. See the
schedule set forth below for a complete list and brief description of
the documents comprising the ERISA Guidelines.
The Department and the Service emphasized that the ERISA Guidelines
constitute the entire set of interim rules of the Department and the
Service for satisfying the new qualification requirements, and thus
provide authoritative guidance in respect of the new statutory
requirements bearing on qualification. These rules are applicable to
individually designed plans and to multiemployer (or other multiple
employer) plans, and may be relied upon until amended or supplemented by
final regulations or other rules. Moreover, the Department and the
Service announced that any provisions of final regulations or other
rules which amend or supplement the rules contained in the ERISA
Guidelines will generally be prospective only, from the date of
publication. Further, in the case of employee plan provisions adopted or
amended before the date of such publication which satisfy the ERISA
Guidelines, such final regulations or other rules will generally be made
effective for plan years commencing after such date, except in unusual
circumstances.
The Service further announced that the ERISA Guidelines incorporate
the procedures that will enable employers to obtain determination
letters as to the qualification of pension, annuity, profit sharing,
stock bonus and bond purchase plans which satisfy the requirements of
sections 401(a), 403(a) and 405(a) of the Code, as amended by ERISA. The
Service also pointed out that the ERISA Guidelines will enable sponsors
of master and prototype plans (whether newly established or amended) to
obtain opinion letters as to the acceptability of the form of such
plans, and further, that employers who establish plans designed to meet
the requirements of section 301(d) of the Tax Reduction Act of 1975
(relating to employee stock ownership plans) will be able to obtain
determination letters as to the acceptability of such plans (whether or
not such plans are intended to be qualified).
To facilitate further the adoption of new plans and the prompt
amendment of existing
plans in conformance with the new qualification requirements, the
Service announced on November 5, 1975, the adoption of a special
procedure (hereinafter referred to as the ``Special Reliance
Procedure'') pursuant to which the adoption, on or before May 30, 1976,
of new plans and amendments of existing plans may be effectuated with
full reliance upon the rules which comprise the ERISA Guidelines and
without regard to any amendment or supplementation of such rules before
such date. Therefore, except in unusual circumstances (described in
Technical Information Release No. 1416 (November 5, 1975)), plans which
comply with the Special Reliance Procedure shall generally be considered
by the Service as satisfying the qualification requirements of the Code
added or amended by ERISA for plan years commencing on or before
December 31, 1976, to which such requirements are applicable,
notwithstanding the date when final regulations or other rules hereafter
published which amend or supplement the rules comprising the ERISA
Guidelines may otherwise be made effective. Reference is hereby made to
Technical Information Release No. 1416 (November 5, 1975) for a
description of the Special Reliance Procedure.
The Department announced that plans which comply with the Special
Reliance Procedure will be considered by the Department as satisfying
the requirements of the provisions of parts 2 and 3 of title I of ERISA
which parallel the qualification requirements of the Code added or
amended by ERISA to the same extent as such plans are considered by the
Service as satisfying, in accordance with the terms of the Special
Reliance Procedure, such qualification requirements.
The availability of the Special Reliance Procedure will
substantially diminish the occasions for plans to avail themselves of
the right to satisfy, for tax purposes, the qualification requirements
of the Code (added or amended by ERISA) by retroactive amendments
adopted during or after the close of a plan year, in accordance with
section 401(b) of the Code and the temporary regulations thereunder. The
Department pointed out that no explicit parallel provision to section
401(b) of the Code is contained in title I of ERISA. Nevertheless, to
the extent retroactive amendments to a plan are made to satisfy the
requirements of parts 2 and 3 of title I of ERISA which parallel the
qualification requirements of the Code added or amended by ERISA, the
Department noted that such plan will be in compliance with such
requirements if such an amendment designed to satisfy such requirements
(1) is adopted by the end of the plan year to which such requirements
are applicable, and (2) is made effective for all purposes for such
entire plan year.
The schedule of documents comprising the ERISA Guidelines follows.
ERISA Guidelines--Schedule of Documents
----------------------------------------------------------------------------------------------------------------
Code and ERISA
Publication date 1975 Document Subject sections
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Jan. 8............................. TIR 1334.............. Questions and answers 410, 411, et al.
relating to defined
contribution plans subject
to ERISA.
Apr. 21............................ 40 FR 17576........... Notice of proposed 401(c), 401(d),
rulemaking: Qualification 401(e), 46, 50A, 72,
(and other aspects) of HR- 404(e), 901, and
10 plans. 1379.
June 4............................. T.D. 7358............. Temporary regulations: 7476.
Notification of interested
parties.
July 14............................ T.D. 7367............. Temporary regulations: 7476.
Notice of determination of
qualification.
Sept. 8............................ 40 FR 41654........... Department of Labor--Minimum 401(a)(3)(B),
standards for hours of 411(a)(5)(C), and
service, years of service, ERISA secs. 202,
and breaks in service 203, and 204.
relating to participation,
vesting, and accrual of
benefits.
Sept. 17........................... TIR 1403.............. Questions and answers 410, 411, et al.
relating mainly to defined
benefit plans subject to
ERISA (addition to TIR
1334).
Sept. 18........................... 40 FR 43034........... Notice of proposed 414(f) and (g).
rulemaking: Definitions of
multi-employer plan and
plan administrator.
Sept. 29........................... T.D. 7377............. Temporary regulations: 401(b).
Certain retroactive
amendments of employee
plans.
Oct. 3............................. T.D. 7379............. Temporary regulations: 401(a)(11).
Qualified joint and
survivor annuities.
T.D. 7380............. Temporary regulations: 410.
Minimum participation
standards.
Oct. 8............................. T.D. 7381............. Temporary regulations: 401(a)(14).
Commencement of benefits.
Oct. 15............................ T.D. 7382............. Temporary regulations: 401(a)(15).
Requirement that benefits
under a qualified plan are
not decreased on account of
certain social security
increases.
Oct. 16............................ T.D. 7383............. Temporary regulations: 401(d)(1).
Nonbank trustees of pension
and profit sharing trusts
benefiting owner-employees.
40 FR 48517........... Notice of proposed 401(f).
rulemaking: Certain
custodial accounts.
Oct. 30............................ TIR 1408.............. Questions and answers 401(a)(12) and
relating to mergers, 414(1).
consolidations, etc.
Nov. 3............................. Rev. Rul. 75-480, 1975- Updating of Rev. Rul. 71-446 401(a)(5).
44 IRB. to reflect changes mandated
by ERISA.
Rev. Rul. 75-481, 1975- Guidelines for determining 401(a)(16) and 415.
44 IRB. whether contributions or
benefits under plan satisfy
the limitations of sec. 415
of the code.
TIR 1411, Rev. Proc. Vesting and discrimination.. 401(a)(4) and
75-49, 1975-48 IRB. 411(d)(1).
Nov. 4............................. TIR 1413.............. Questions and answers 401, 4975, and sec.
relating to employee stock 301(d) of the Tax
ownership plans. Reduction Act of
1975.
Nov. 5............................. T.D. 7387............. Temporary regulations on 411.
minimum vesting standards.
T.D. 7388............. Controlled groups, 414(b) and (c).
businesses under common
control, etc.
(\1\).............................. TIR................... Nonforfeiture of employee 411(a)(1).
derived accrued benefit
upon death.
(\1\).............................. ...................... Department of Labor-- 410(a)(3)(B),
Interpretive bulletin: 411(a)(5)(C), and
Definition of seasonal ERISA secs.
industries. 202(a)(3)(C),
203(b)(2)(C).
Nov. 7............................. 40 FR 52008........... Department of Labor-- 414(f) and ERISA sec.
additional requirements 3(37).
applicable to definition of
multiemployer plan.
(\1\).............................. ...................... Department of Labor-- 411(a)(3)(B) and
suspension of benefits upon ERISA sec.
reemployment of retiree. 203(a)(3)(A).
Dec. 3............................. TIR 1422.............. Assignment or alienation of 401(a)(13).
plan benefits.
Dec. 9............................. TIR 1424, Rev. Proc. Vesting and discrimination.. 401(a)(4) and
76-1, 1976-1 IRB.. 411(d)(1).
(\1\).............................. TIR, Rev. Rul......... Appropriate conversion 411(c)(2)(B)(ii).
factor.
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\1\ To be published forthwith.
[41 FR 3289, Jan. 22, 1976]
