The Internal Revenue Service has come up with procedures for providing automatic approval for some retirement plan funding changes resulting from plan takeovers and changes in pension valuation software.
The announcement affects funding changes that took place or will take place at eligible plans in plan years starting on or after Jan. 1, 2009.
Plans that are eligible for the relief could include a plan that has changed its valuation software, or a plan that has changed both its enrolled actuary and the business organization providing actuarial services to the plan.
"This guidance is being provided in response to numerous requests from actuaries and plan sponsors, many of whom are continuing to modify their valuation software in order to implement the changes to the funding rules made by the Pension Protection Act of 2006, the Worker, Retiree, and Employer Recovery Act of 2008, and guidance regarding these legislative changes," IRS officials write in the announcement.
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