Text of IRS Rev. Proc. 2017-43: Application Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans Under Section 432(e)(9) (PDF)
43 pages. "This revenue procedure contains revised procedures for applications for a suspension of benefits under a multiemployer defined benefit pension plan that is in critical and declining status under Section 432(e)(9).... The procedures set forth in this revenue procedure must be followed for applications submitted on or after September 1, 2017.... This revenue procedure includes the following changes from Rev. Proc. 2016-27 ...
Internal Revenue Service [IRS]
- the projected withdrawal liability payments that are included as part of the projection of the plan's available resources, and as part of the support for the certification that the plan is projected to avoid insolvency ... must be separately identified as projected payments attributable to prior
withdrawals and projected payments attributable to expected future withdrawals....
- the requirement to provide sample calculations with respect to the guarantee-based limitation under Section 432(e)(9)(D)(i) and the disability-based limitation under Section 432(e)(9)(D)(iii) for an individual in each category or group that is treated differently under the suspension [is replaced] with a requirement that those sample calculations be provided only for an individual currently receiving benefits, a contingent beneficiary of an individual currently receiving benefits, and a future retiree....
- specify the age categories for which sample calculations with respect to the age-based limitation under Section 432(e)(9)(D)(ii) (taking into account the guarantee-based limitation and, if applicable, the disability-based limitation) must be provided....
- [clarification of] the
different categories of individuals with respect to which sample notices must be provided as part of the application....
- consolidate the descriptions of the actuarial assumptions used with respect to certain illustrations and projections included in the application ... [and] provide additional detail regarding those assumptions....
- require the inclusion of a narrative statement of the reasons the plan is in critical and declining status....
- a requirement to provide ... the accountant's report under section 103(a)(3) of ERISA....
- minor clarifications to the Model Notice of Application for Approval of a Proposed Reduction of Benefits....
- minor clarifications to the power of attorney and declaration of representative form....
- clarifications to the application checklist[.]"
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