Has the 412(d)(2) issue ever been solved?

[Dougsbpc]

Have a few DB plans that would like to increase benefits for most participants. If possible, they would like to execute the amendment before March 15, 2015 but have it effective as of 1/1/2014. Can this still be done?

Thanks.

[Effen]

Why not do it before 12/31/14 and avoid the question?

[david rigby]

Also, have you checked the Gray Book? About a dozen Q&A's related to 412(d)(2), including a few that were issued after the October 2009 regs.

[Andy the Actuary]

Mr. Effen. Allow me to conjecture that the decision was recently made and uncertainty of whether implementation can be timely. I could scold that someone was asleep.

However, had a long standing client with whom early each year we would have planning meeting. We always covered the potential DB plan termination. "No, no, no. We are not going to terminate the plan." So, I was repeatedly told.

So, over the past 5 years several material changes were made to the plan that created grandfathers, changed the lump sum stability period from annually to quarterly, and changed the plan year. The Plan became complicated as can be. But, that was okay because it was an on-going plan sponsored by a financially healthy organization. So, it was okay. Well, the organization is still very much healthy. However, earlier this year, plan sponsor decided to terminate DB. Now we have a grizzly bear to contend with.

In short: In the most controlled of laboratory environments, organisms do what they damn well please.