The Internal Revenue Service is giving sponsors of some governmental retirement plans more time to adopt remedial amendments.

IRS officials discuss the change in IRS Revenue Procedure 2009-36.

The IRS has set up a system of 5-year “cyclical remedial amendment periods” for individual designed governmental plans with a need to address qualification problems, and it has set up a 6-year remedial periods for “pre-approved” plan templates.

Governmental plans can get 91-day extensions of a remedial amendment period, but, in some cases, laws and procedures may keep the governing body that controls a governmental plan from considering the required amendments until the 91-day extension has expired, officials write in the revenue procedure.

Now, if a governmental plan files an application for a determination letter regarding its status in a timely fashion, “the remedial amendment period will be extended until the expiration of the 91st day after the last day of the first regular legislative session beginning more than 120 days after the date … in which the governing body with authority to amend the plan can consider a plan amendment under the laws and procedures applicable to the governing body’s deliberations,” officials write.

In many cases, the date that triggers the start of the governmental plan remedial amendment period would be the “date on which notice of the final determination with respect to the application is issued by the Service, the application is withdrawn, or the application is otherwise disposed of by the Service.”

If a governmental plan asks the U.S. Tax Court for a declaratory judgment, the triggering date would be the “date on which the decision of the Tax Court in such proceeding becomes final.”

A copy of the revenue procedure is available here.