Pension Relief Elections

[Effen]

Because I was almost caught off guard, I thought someone else out there might appreciate a reminder that if any of your clients elected funding relief for plan years ending in 2009 or 2010 you need to have their formal elections in hand, and the PBGC notified on or before 1/31/2011. This includes 2010 EOY vals that you may not even have data for - gotta love the IRS.

[ScottR]

And what, pray tell, is the PBGC going to do with that information? File it next to the notices of missed quarterly contributions?

[YankeeFan]

Would someone be kind enough to post a sample employer election to use funding relief under PRA 2010? Thank you in advance.

[Effen]

It is pretty straight forward. See Q/A E-1 of Notice 2011-3

Q E-1: How is an election made to use an alternative amortization schedule for a plan year?

A E-1: An election made on or after January 1, 2011, must be made by the plan sponsor, by providing written notification of such election to both the plan's enrolled actuary and the plan administrator. Such election must be signed and dated by the plan sponsor and must include all of the following information:

(1) The name of the plan;

(2) The plan number;

(3) The name of the plan sponsor;

(4) The plan sponsor's mailing address;

(5) The plan sponsor's employer identification number;

(6) Which of the two alternative amortization schedules is being elected;

(7) The plan year for which the election is being made;

(8) Whether an alternative amortization schedule has been elected for another year, and, if so, a statement that the same alternative amortization schedule is being elected; and

(9) A statement that the plan sponsor will notify the PBGC and plan participants and beneficiaries pursuant to § 430©(2)(D)(vi) of the Code and ERISA section 303©(2)(D)(vi).