IRS Extends Deadline For Defined Benefit Plans To Adopt Code Section 436 Amendments

The Internal Revenue Service (IRS) issued Notice 2012-70, extending the deadline for plan sponsors of defined benefit plans to adopt amendments to comply with Section 436 of the Internal Revenue Code (the Code), which generally imposes plan benefit payment and amendment restrictions if a defined benefit plan's funding dips below specified levels. 

Background

Code Section 436 sets forth a series of limitations on the accrual and payment of benefits under an underfunded defined benefit plan (see " New Notice Requirements Effective November 1, 2012 for Single Employer Pension Plans with Funding-Related Restrictions" for more information).  Under previous IRS guidance, (see " IRS Extends Year-End Deadline for Pension Plan Amendments Under Code Section 436" for more information), the deadline for adopting the Code Section 436 amendment to reflect such funding-based restrictions was generally the last day of the plan year beginning on or after January 1, 2012 (e.g.,