Overview of Current Issues Relating to Single-Employer Defined Benefit Pension Plans And Pension Benefit Guaranty Corporation (Pbgc) Premiums : Scheduled for Hearings Before the Subcommittee On Oversight of the Committee On Ways And Means On April 7 And 9

Cover Overview of Current Issues Relating to Single-Employer Defined Benefit Pension Plans And Pension Benefit Guaranty Corporation (Pbgc) Premiums : Scheduled for Hearings Before the Subcommittee On Oversight of the Committee On Ways And Means On April 7 And 9
Overview of Current Issues Relating to Single-Employer Defined Benefit Pension Plans And Pension Benefit Guaranty Corporation (Pbgc) Premiums : Scheduled for Hearings Before the Subcommittee On Oversight of the Committee On Ways And Means On April 7 And 9
United States. Congress. Joint Committee On Taxation
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{ The Implementation Guidelines set forth administrative proce- \ dures for processing certain terminations of qualified defined bene- 1 fit pension plans involving reversions of excess assets to the plan { sponsor. The guidelines generally provide that a bona fide termina- ' tion of a defined benefit pension plan will be recognized as having I occurred under either a spinoff-termination or a termination-rees- } tablishment transaction only if certain conditions are met. I A spinoff-termination... is considered bona fide under the guide- 1 lines only if (1) the benefits of all employees are vested as of the | date of the termination, (2) all benefits accrued by all employees as i of the date of the termination are provided for by the purchase of i 33 annuity contracts, (3) the continuing plan adopts a special funding method (with the approval of the IRS), and (4) appropriate notice is provided to employees.
Under the Implementation Guidelines, termination-reestablish- ment transactions are generally recognized as bona fide.


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