DB Funding Relief Enacted

EACA/QACA Amendment Now Available

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Updates on PPA Amendments

 Updated DC termination amendment is now available. DB Amendments coming soon.

 We released a good-faith Pension Protection Act of 2006 (PPA) amendment for defined contribution plans on February 18, 2009. The amendment enables an employer to comply in form with various laws including the: (1) Pension Protection Act of 2006 (PPA), except for provisions relating to the establishment of an eligible automatic contribution arrangement (“EACA”) or a qualified automatic contribution arrangement (“QACA”); (2) Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act); and (3) Worker, Retiree, and Employer Recovery Act of 2008 (PPA Technical Corrections Act) (other than the waiver of required minimum distributions under Code Section 401(a)(9)).

Technically, the answer is no. However, if the plan will not be submitted for a determination letter using IRS Form 5310, then it is advisable to restate a terminating defined contribution plan using an EGTRRA pre-approved plan prior to termination. The plan would still need tack-on amendments for the final 415 regulations as well as PPA and subsequent laws (e.g., the HEART Act).