Full Version: 2010 Re-election
Just in case anybody did not see it, the IRS posted a bulletin that it will allow a new interest rate election for 2010, so if a plan elected the full yield curve in 2009, it can switch back in 2010. It is on their website under Retirement Plan Community. They seem to be silent on an asset election.
QUOTE
The Employee Plans News (EPN), March 2009, Special Edition addressed the use of the full yield curve for
plan years prior to the effective date of the final regulations and stated that plan sponsors could use the full
yield curve with an applicable lookback month prior to the effective date of the final regulations. For a calendar
year plan, the full yield curve would be the month’s corporate bond yield curve for: September 2008; October
2008; November 2008; December 2008; or January 2009, based on data for that month.
In order to assist actuaries in issuing the certified AFTAP for 2009, this EPN, September 25, 2009, Special
Edition is providing the following information with respect to the final regulations:
1. The final regulations will provide automatic approval for a new choice of interest rates for the first
plan year beginning in 2010 (regardless of what choices were made for earlier plan years); and
2. For plan years beginning after 2009, the final regulations will not allow the use of the full yield
curve with a lookback month as permitted by the EPN, March 2009, Special Edition.
Please share this EPN Special Edition newsletter with your colleagues. Also, visit our Web site to access our
newsletter archive and to subscribe to future editions.
plan years prior to the effective date of the final regulations and stated that plan sponsors could use the full
yield curve with an applicable lookback month prior to the effective date of the final regulations. For a calendar
year plan, the full yield curve would be the month’s corporate bond yield curve for: September 2008; October
2008; November 2008; December 2008; or January 2009, based on data for that month.
In order to assist actuaries in issuing the certified AFTAP for 2009, this EPN, September 25, 2009, Special
Edition is providing the following information with respect to the final regulations:
1. The final regulations will provide automatic approval for a new choice of interest rates for the first
plan year beginning in 2010 (regardless of what choices were made for earlier plan years); and
2. For plan years beginning after 2009, the final regulations will not allow the use of the full yield
curve with a lookback month as permitted by the EPN, March 2009, Special Edition.
Please share this EPN Special Edition newsletter with your colleagues. Also, visit our Web site to access our
newsletter archive and to subscribe to future editions.
Thanks for the heads up Andy. Its nice that they gave us 5 whole days to redo our 2009 AFTAPs! Honestly though, this is a good thing, even if my changing AFTAP might cause the plan to be disqualified, or was there relief on that?
They seem to have a thing about Fridays.
QUOTE (AndyH @ Sep 25 2009, 04:10 PM) 
They seem to have a thing about Fridays.
Yes, and Friday afternoon at that, and Friday's before a weekend that many of us would not be working on Monday....but i digress.
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