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ARTICLE · 25 OCTOBER 2010

Year-End Compliance for Qualified Retirement Plans

During the last quarter of 2010, tax-qualified retirement plan sponsors should review their plans and amend them by the end of the year (or in some cases, by the end of the last day of the plan year ending on or after January 1, 2010), to comply with applicable legislative and regulatory changes that have occurred over the past few years.

United StatesEmployment and HR

During the last quarter of 2010, tax-qualified retirement plan sponsors should review their plans and amend them by the end of the year (or in some cases, by the end of the last day of the plan year ending on or after January 1, 2010), to comply with applicable legislative and regulatory changes that have occurred over the past few years. The following summarizes these changes and other year-end housekeeping matters that are necessary for continued compliance with retirement plan requirements.

I. Required Amendments for 2010

A. Defined Benefit Plan Amendments

  • Cash Balance/Hybrid Plans – A cash balance or other hybrid pension plan must provide for the following, among other applicable requirements: (1) 3-year cliff vesting; (2) an interest crediting rate that does not exceed a market rate of return; and (3) no reduction or cessation of benefit accruals based solely on a participant's age (i.e., the similarly situated younger participant standard).

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