April 14, 2016
On April 14, 2016, the Department of the Treasury (Treasury) announced that it will withdraw the “QSERP” portion of regulations it proposed on January 29, 2016.
The provisions in question would have revised the current QSERP regulations to limit a plan’s ability to provide a special benefit formula to selected employees without extending that formula to a larger group that met a “reasonable and objective” standard. The Treasury is withdrawing the provisions because it has determined further analysis of the effect of the proposed changes on a variety of plan designs is necessary.
The remaining portions of the proposed regulations, which provide nondiscrimination testing relief in certain circumstances for “closed” defined benefit pension formulas or plans, are not affected. Please see Sibson’s February 13, 2016 Hot Topic for more information.
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