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ARTICLE · 10 DECEMBER 2009

Employee Benefits Developments For October And November 2009

IRS issued final regulations pursuant to Code Sections 430 and 436 for single employer defined benefit pension plans.

United StatesEmployment and HR

Qualified Retirement Plans

IRS issued final regulations pursuant to Code Sections 430 and 436 for single employer defined benefit pension plans. (Treasury Decision 9467, 10/07/2009) The regulations reflect provisions added by the Pension Protection Act of 2006, as amended (PPA), and the Worker, Retiree, and Employer Recovery Act of 2008. The statutory provisions generally apply in 2008 but the regulations apply for plan years beginning on or after January 1, 2010. The regulations address:

Interest rates used to determine present value under the defined benefit funding rules (Treas. Reg. 1.430(h)(2)-1)

Determination of target normal cost and the funding target (Treas. Reg. 1.430(d)-1)

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