NU Online News Service, Sept. 11, 4:44 p.m. – The federal Internal Revenue Service has rescheduled a public hearing on “10 or more employer plans” for 10 a.m. Nov. 14, from 10 a.m. Nov. 5.
The hearing, which will take place in Room 2140 at the Internal Revenue Building, 1111 Constitution Ave. N.W., Washington, will deal with multiple-employer benefit plans organized under Section 419 of the Internal Revenue Code.
Wealthy business owners sometimes participate in Section 419 plans so that they can offer rich benefits packages without having to worry about complying with the Employee Retirement Income Security Act of 1974.
The IRS is holding the public hearing to review proposed regulations that would provide guidance regarding whether a plan is part of a 10-or-more-employer plan.
The proposed regulations would emphasize the IRS position that a plan cannot qualify as a Section 419 plan if the cost of participation reflects an employer’s claims experience.
But the IRS says a 10-or-more-employer plan can qualify if it requires all participating employers to make up for any funding deficits.
The IRS has posted information about the hearing postponement at http://frwebgate3.access.gpo.gov/cgi-bin/waisgate.cgi?WAISdocID=77796920394+18+0+0&WAISaction=retrieve
A discussion of the proposed regulations is available at http://www.irs.gov/pub/irs-regs/16586801.pdf