Remedial Amendment Period for Governmental Retirement Plans

[Guest John Papahronis]

Item 32 on Carol Calhoun's summary of "Qualification Rules for Governmental Plans" on this website says that the remedial amendment period for governmental plans ends on the last day of the last plan year beginning before 1/1/01. Shouldn't that be "the last day of the first plan year beginning on or after January 1, 2001? See Rev. Proc. 2007-27.

[Guest mmagidson]

Where did you find Carol's summary of "Qualification Rules for Governmental Plans" that you mentioned? I have been unable to locate what you are referring to on the website.

[Guest John Papahronis]

Click the folder "+governmental plans" on the list at the left, and then click on "qualification rules for governmental plans."

[Carol V. Calhoun]

mmagidson, you can find the summary of "Qualification Rules for Governmental Plans" by clicking on the following URL:

http://www.benefitsattorney.com/appfa.html

You're right, John. This is an illustration of why I put a disclaimer at the bottom of each page saying, "The speeches and articles reflect the state of the law at the time they are written, and the law may have changed since that time." The outline was written before Rev. Proc. 2000-27 (http://www.benefitslink.com/IRS/revproc2000-27.shtml), and does not reflect the new deadline, which is as follows:

"The remedial amendment period for governmental plans, as defined in sec. 414(d), is extended to the later of (i) the last day of the first plan year beginning on or after January 1, 2001, or (ii) the last day of the first plan year beginning on or after the "2000 legislative date" (that is, the 90th day after the opening of the first legislative session beginning after December 31, 1999, of the governing body with authority to amend the plan, if that body does not meet continuously)."

[Guest Denise Serra]

Question with regard to Carol V. Calhoun 5/10/01 response to John Papahronis.

What exactly is the date that is "... "the last day of the first plan year beginning on or after the "2000 legislative date" (that is, the 90th day after the opening of the first legislative session beginnining after December 31, 1999, of the governing body with authority to amend the plan, if that body does not meet continuously)", if an Employer has a calendar year plan?

[Carol V. Calhoun]

This depends on the legislative session. For example, suppose the legislature meets only every other year, and did not meet in 2000. If it meets from January 15 through March 15, 2001, "the 90th day after the opening of the first legislative session beginnining after December 31, 1999" would be about April 15, 2001. The first plan year beginning after that would be calendar year 2002. And the last day of that plan year would be December 31, 2002.

[Guest Denise Serra]

At the risk of sounding dumb, what body of the government is holding this legislative session and how does one determine when they meet?

[Carol V. Calhoun]

Typically, governmental plans are embodied in, or at least are pursuant to, a state or local statute. The legislative body would be the legislature (state or local) which had authority to amend that statute.

[Guest Joann Albrecht]

Originally posted by Carol V. Calhoun

This depends on the legislative session.  For example, suppose the legislature meets only every other year, and did not meet in 2000.  If it meets from January 15 through March 15, 2001, "the 90th day after the opening of the first legislative session beginnining after December 31, 1999" would be about April 15, 2001.  The first plan year beginning after that would be calendar year 2002.  And the last day of that plan year would be December 31, 2002.

If the plan were not a calendar year plan for this example wouldn't the date for ammending the plan be different than December 31, 2002 :confused:

[Carol V. Calhoun]

Definitely! I was responding to Denise's question, which specified that it was a calendar year plan.