The Internal Revenue Service is asking for public comments about the best way to help older workers ease into collecting pension benefits.
IRS officials are asking for the comments in IRS Notice 2007-8, “In-Service Benefits Permitted to be Provided at Age 62 by a Pension Plan,” a discussion of IRS efforts to implement Section 905 of the Pension Protection Act.
Section 401(a)(36) of the Internal Revenue Code, a provision added by the PPA, will permit defined benefit pension plans to pay benefits to workers who have reached age 62 but have not yet reached the normal retirement age and have not retired.
IRC Section 401(a)(36) takes effect for plan years starting after Dec. 31.
The IRS proposed phased retirement pension benefits regulations in November 2004, and it held a public hearing on the issue in March 2005.
Comments on the new in-service benefits questions are due April 16, 2007.