September 10, 2015
On September 9, 2015, the Department of the Treasury issued final regulations on the contribution requirements for single-employer defined benefit pension plans. The final regulations must be followed for plan years beginning on or after January 1, 2016, and may be followed for earlier plan years.
The final regulations generally follow the previously proposed regulations with various technical changes, clarifications and additions. One particular change may be advantageous to many plan sponsors: for plan sponsors that satisfy their contribution requirements by using credit balances (developed through excess contributions paid in prior years), the regulations expanded the ability to make “standing elections.” This type of election can now also be used to simplify compliance with the quarterly contribution requirements.
Sibson helps our clients navigate the maze of federal, state and local laws and regulations related to benefit plans.Learn more about our compliance services