|
A Brave New World: Implementing the New Rules for Lump Sum Distributions and Benefit Restrictions
With the passage of the Pension Protection Act (PPA) last year, Congress directed the IRS to issue specific guidance on many of the assumptions used to determine funding targets, liabilities and lump sum distributions. With most of the new rules from PPA going into effect January 1, 2008, plan sponsors have been anxiously awaiting the specifics of the guidance.
The IRS has just released the information needed to determine lump sum distributions in 2008. Given the late timing and the significant changes, plan sponsors need to quickly review the choices in front of them and the administrative, financial and communication implications.
Additionally, the IRS has released proposed regulations on benefit restrictions. This topic will affect many plan sponsors and requires immediate financial planning and changes in measurement procedures in order to avoid the imposition of benefit restrictions as soon as a few months from now.
On December 13, Watson Wyatt hosted a Web conference, “A Brave New World: Implementing the New Rules for Lump Sum Distributions and Benefit Restrictions,” to help employers understand how these regulations might affect their pension plans.
|
