PEFA 2004 Amendment

[JButtrick]

A recent newsletter I got from one of the larger document providers states that there has been an extension of the deadline for adopting the PFEA 2004 amendment as a result of PPA 2006.

My document vendor doesn't know anything about an extension, but is thinking that something may come out of the ASPPA conference.

Does anyone have any infomration on the topic either way?

[David MacLennan]

Yes there was an extension in PPA 2006, until the end of the 2008 plan year. I think there was some confusion earlier this year because Marty Pippins had said they were required by the end of 2006, but I heard on another board that he has reversed on this. The statute is pretty clear.

[Guest lerieleech]

Yes there was an extension in PPA 2006, until the end of the 2008 plan year. I think there was some confusion earlier this year because Marty Pippins had said they were required by the end of 2006, but I heard on another board that he has reversed on this. The statute is pretty clear.

I want to resurrect this topic, if you don't mind.

I have looked at PFEA, PPA 06 and IRS Notice 2005-95. It is clear to me also that the amendment need not be done until the end of the 2008 plan year. Not only that, but if you amend now, you'll have to amend again, because PPA 06 changed 415 again after 2005.

Still, it seems that there are a good number of practitioners who seem to be taking the conservative approach. Not that there's anything wrong with that, but I see no reason to when the change is in the law. It shouldn't matter that IRS hasn't come out with anything that changes its position in Notice 2005-95, because that notice is trumped by the law.

Does anyone have any other thoughts?

[SoCalActuary]

We took the position that the PFEA amendment is not needed unless the plan terminates.

We also made a good-faith amendment of the lump sum 415 rules under PPA.

When we terminate a DB plan, that is our chosen add-on amendment, until IRS comes up

with something better.

[Guest lerieleech]

We took the position that the PFEA amendment is not needed unless the plan terminates.

We also made a good-faith amendment of the lump sum 415 rules under PPA.

When we terminate a DB plan, that is our chosen add-on amendment, until IRS comes up

with something better.

Thanks.

Just to make sure I understand--- for your ongoing plans, you are not having the client sign any amendments right now?

[SoCalActuary]

As called for by the situation.

If we are reviewing for other issues, we might offer this PFEA/PPA amendment at the same time.

If the plan will be submitted with the Individual Designed Plans, we will probably have this included in the restatement.

Otherwise, no. We are not doing a massive mailout for PFEA.

[Guest lerieleech]

As called for by the situation.

If we are reviewing for other issues, we might offer this PFEA/PPA amendment at the same time.

If the plan will be submitted with the Individual Designed Plans, we will probably have this included in the restatement.

Otherwise, no. We are not doing a massive mailout for PFEA.

Thanks. That makes total sense to me.