Seyfarth Synopsis: On Friday,
March 27, 2020, in light of the far-reaching impact of coronavirus,
President Trump signed the Coronavirus Aid, Relief, and Economic
Security (CARES) Act, which includes some relief provisions for
tax-qualified defined benefit pension plans. Click
here to review the executive compensation provision contained
in the law; click
here to review the health and welfare plan provisions; and
click
here to review the defined contribution plan
provisions.
The CARES Act includes two provisions aimed at providing some
relief to companies that sponsor tax-qualified defined benefit
pension plans.
- Delay of Required Contributions. Under the
CARES Act, a company can delay to January 1, 2021 any required
contributions otherwise due in 2020 to meet funding standards. This
provision will provide cash conscious companies with the ability to
conserve their cash in 2020 by delaying contributions to the plan
until January 1, 2021. Any contributions
