Notice 2014-53--HAFTA

Part III. Administrative, Procedural, and Miscellaneous
Guidance on Pension
Funding Stabilization under
the Highway and
Transportation Funding Act
of 2014 (HATFA)
Notice 2014 –53
I. PURPOSE
This notice provides guidance on the
changes to the funding stabilization rules
for single-employer pension plans under
the Internal Revenue Code (Code) and the
Employee Retirement Income Security
Act of 1974 (ERISA)1 that were made by
section 2003 of the Highway and Transportation Funding Act of 2014 (HATFA),
Pub. L. No. 113–159, which was enacted
on August 8, 2014.
II. BACKGROUND
Section 430 specifies the minimum
funding requirements that generally apply
to single-employer defined benefit pension plans pursuant to § 412. Section
430(h)(2) specifies interest rates that are
used for purposes of calculating the minimum required contribution. The interest
rates that are used for this purpose are a
set of three segment rates described in
§ 430(h)(2)(C)(i), (ii) and (iii), or, alternatively, a full yield curve described in
§ 430(h)(2)(D)(i).
Section 430(h)(2)(C)(iv), which was
added by the Moving Ahead for Progress
in the 21st Century Act of 2012 (MAP–
21), Pub. L. No.112–141, provides that
each of the three segment rates described
in § 430(h)(2)(C)(i), (ii) and (iii) for a plan
year is adjusted as necessary to fall within
a specified range that is determined based
on an average of the corresponding segment rates for the 25-year period ending
on September 30 of the calendar year preceding the first day of that plan year. For
plan years beginning in 2012, each segment rate is adjusted so that it is no less
than 90% and no more than 110% of the
corresponding 25-year average segment

rate. Under § 430(h)(2)(C)(iv)(II) as in
effect prior to its modification by HATFA,
this range was scheduled to gradually increase for later plan years, so that the
segment rates for plan years beginning
after 2015 would have been no less than
70% and no more than 130% of the corresponding 25-year average segment
rates.
Notice 2012– 61, 2012– 42 I.R.B. 479,
provides guidance regarding the changes
to the minimum funding requirements and
related rules made by MAP–21. Notice
2012– 61 includes general guidance relating to the application of the modified segment rates (referred to in Notice 2012– 61
and this notice as the MAP–21 segment
rates), measurements for which the
modified segment rates do not apply,
transition issues, elections, reporting,
and other issues.
HATFA extends the period during
which the narrowest range around the 25year average segment rates applies for purposes of determining the segment rates that
are used to apply §§ 430 and 436. Under the
modifications to § 430(h)(2)(C)(iv) made by
HATFA, for plan years beginning in 2012
through 2017, each segment rate is adjusted so that it is no less than 90% and no
more than 110% of the corresponding 25year average segment rate. For later plan
years, this range is scheduled to gradually
increase, so that the segment rates for plan
years beginning after 2020 are no less
than 70% and no more than 130% of the
corresponding 25-year average segment
rates. The segment rates as modified by
HATFA are referred to in this notice as
the HATFA segment rates.
Section 436 sets forth a series of limitations on the accrual and payment of benefits under an underfunded plan. These
limitations are applied during a plan year
based on the plan’s adjusted funding target attainment percentage (AFTAP). Section 2003(c) of HATFA provides that the
limitation on interest rates based on the
corresponding 25-year average segment
rates does not apply for purposes of
§ 436(d)(2) (relating to limitations on ac-

celerated benefit distributions for a plan
sponsored by an employer in bankruptcy).
Section 2003(e)(1) of HATFA provides
that the modifications to § 430(h)(2)(C)(iv)
apply with respect to plan years beginning
after December 31, 2012. Under section
2003(e)(2) of HATFA, a plan sponsor can
elect not to have the modifications to
§ 430 apply to any plan year beginning in
2013, either for all purposes or solely for
purposes of determining the plan’s
AFTAP for that plan year (which is used
to apply the benefit restrictions under
§ 436).
This notice provides guidance on certain issues relating to HATFA. Notice
2012– 61 continues to apply except to the
extent the statutory provisions have
changed.
III. ELECTION TO DEFER USE OF
HATFA SEGMENT RATES UNTIL
THE 2014 PLAN YEAR
This section III sets forth the procedures for elections made pursuant to section 2003(e)(2) of HATFA that relate to a
plan year beginning in 2013.
A. Procedure for electing to defer use
of HATFA segment rates
Except as provided in section III.B of
this notice (which provides for a deemed
election to defer the use of the HATFA
segment rates for purposes of both §§ 430
and 436 based on the filing of Form 5500
under some circumstances), a plan sponsor elects to defer the use of the HATFA
segment rates, either for all purposes or
solely for purposes of § 436, until the first
plan year beginning on or after January 1,
2014, by providing written notice to the
enrolled actuary for the plan and to the
plan administrator. The notice must
specify the name of the plan, employer
identification number and plan number,
and whether the use of the HATFA segment rates is deferred for all purposes or
only for determination of the AFTAP
used to apply benefit restrictions under
§ 436.
The election described in this section
III.A is irrevocable, and must be made no

1
Under section 101 of Reorganization Plan No. 4 of 1978 (43 FR 47713) and section 3002(c) of ERISA, the Secretary of the Treasury has interpretive jurisdiction over the subject matter
addressed in this notice for purposes of ERISA, as well as the Code. Thus, the provisions of this notice pertaining to §§ 430 and 436 of the Code also apply for purposes of sections 303
and 206(g) of ERISA.

Bulletin No. 2014 – 43

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October 20, 2014

later than the later of: (1) the deadline for
filing the Form 5500, Form 5500 –SF or
Form 5500 –EZ (including extensions) for
the plan year beginning in 2013; or (2)
December 31, 2014.
B. Deemed election to defer use of the
HATFA segment rates for purposes of
both §§ 430 and 436 through filing of
Form 5500, Form 5500 –SF or Form
5500 –EZ
With respect to a plan year beginning
in 2013, if, on or before December 31,
2014, the Form 5500, Form 5500 –SF or
Form 5500 –EZ is filed and the Schedule
SB reflects the MAP–21 segment rates,
then an election to defer use of the
HATFA segment rates for purposes of
both §§ 430 and 436 until the first plan
year beginning on or after January 1, 2014
is deemed made. If an election is deemed
made pursuant to this section III.B, the
election is permitted to be revoked by
filing, no later than December 31, 2014,
an amended Form 5500, Form 5500 –SF,
or Form 5500 –EZ2 for the plan year, with
a revised Schedule SB that reflects the use
of the HATFA segment rates. Alternatively, the deemed election is permitted to
be revoked by either providing written
notice of the revocation (which includes
the name of the plan, employer identification number and plan number) to the enrolled actuary for the plan and to the plan
administrator or by making the election
described in section III.A of this notice to
defer the use of HATFA segment rates only
for purposes of § 436, but only if (1) a
copy of the notice of the revocation or of
the election is e-mailed to the Pension
Benefit Guaranty Corporation (PBGC) at
[email protected]
on or before December 31, 2014 (including in the subject line of the e-mail the
plan sponsor’s employer identification
number, the plan number, and the name of
the plan), and (2) at the time of the revocation of the deemed election, the plan
sponsor is not a debtor in a case under title
11, United States Code, or similar federal
or state law. If the plan sponsor revokes
the deemed election using this alternative
method, then an amended Form 5500,
Form 5500 –SF, or Form 5500 –EZ for the

plan year must be filed no later than the
date on which Form 5500, Form 5500 –SF
or Form 5500 –EZ is timely filed for the
following plan year, and the revised
Schedule SB must reflect the use of the
HATFA segment rates.
If the plan sponsor revokes the deemed
election, the plan sponsor can also elect to
defer use of the HATFA segment rates
only for purposes of § 436 under the rules
of section III.A of this notice. An election
that is deemed made pursuant to this section III.B is irrevocable if it is not revoked
in the time and manner set forth in this
section III.B.
IV. SECTION 430 ELECTIONS AND
REDESIGNATIONS AVAILABLE
FOR THE 2013 PLAN YEAR
This section IV sets forth rules regarding elections and designations relating to
the minimum funding requirements applicable to the plan for the plan year beginning in 2013. Any action otherwise permitted in this section IV is not permitted
to the extent it (1) would result in the
imposition of benefit restrictions under
§ 436 for the plan year beginning in 2013
or 2014 that would otherwise not be imposed, or (2) would result in an unpaid
minimum required contribution for any
plan year beginning before 2014. The procedural and timing rules governing the
acts permitted under this section IV are in
section IV.E of this notice.
A. Reversal of an election to reduce
funding balances
A plan sponsor is permitted to elect to
reverse all or part of any election under
§ 1.430(f)–1(e) to reduce the plan’s funding standard carryover balance or prefunding balance as of the first day of a
plan year beginning in 2013 if (i) the
HATFA segment rates apply for purposes
of determining the minimum required
contribution for that plan year, and (ii) the
reduction election was made on or before
September 30, 2014. It is expected that the
regulations under § 430(f) will be revised
to permit this exception to the general rule
that any election to reduce the plan’s

funding standard carryover balance or
prefunding balance is irrevocable.
Under § 1.436 –1(a)(5), there may have
been deemed elections to reduce the funding standard carryover balance or prefunding balance to avoid or remove benefit restrictions under § 436 for the plan
year beginning in 2013. If the HATFA
segment rates are applied retroactively for
purposes of § 436 for a plan year beginning in 2013, the election to reverse a
reduction under this section IV.A also applies to such a deemed election that was
made in conjunction with a certification of
the plan’s AFTAP for the plan year. However, any reduction election that was made
to avoid or remove benefit restrictions under § 436 during the period before the date
of the original AFTAP certification for the
2013 plan year cannot be reversed even if
the HATFA segment rates apply retroactively for purposes of § 436 for the plan
year. This is because the AFTAP based on
the HATFA segment rates will not apply
to that portion of the plan year and therefore the reversal of any reduction election
that was made to avoid or remove benefit
restrictions under § 436 during that period
would result in the imposition of new restrictions.
B. Late elections to add excess contributions for the 2013 plan year to the prefunding balance
If the HATFA segment rates apply for
purposes of determining the minimum required contribution for a plan year beginning in 2013, the plan sponsor is permitted
to make (or increase) the election under
§ 1.430(f)–1(b)(1)(ii) to add excess contributions for that plan year to the plan’s
prefunding balance as of the first day of
the following plan year. It is expected that
the regulations under § 430(f) will be revised to permit this extension of time to
make this election.
C. Redesignation of a section 436 contribution
If the HATFA segment rates are applied retroactively for purposes of § 436
for a plan year beginning in 2013, any
section 436 contribution within the meaning of § 1.436 –1(j)(7) that was made in
connection with the certified AFTAP for

2
Schedule SB is not required to be filed for plans for which Form 5500 –EZ is filed and certain plans for which Form 5500 –SF is filed. For these plans, the Schedule SB must be completed
(including being signed by the enrolled actuary) and delivered to the plan administrator, who must retain it. With respect to these plans, references in section III.B of this notice to the filing
of an amended Form 5500, Form 5500 –SF, or Form 5500 –EZ with a revised Schedule SB are applied by substituting the completion and delivery of the revised Schedule SB for the filing
of the amended form.

October 20, 2014

738

Bulletin No. 2014 – 43

that plan year is applied toward the minimum required contribution for that plan
year to the extent the contribution is no
longer required to avoid or remove the
benefit restriction. However, no change is
permitted with respect to section 436 contributions that were made in connection
with a presumed AFTAP before the
AFTAP was certified for the plan year.
D. Redesignation of a contribution
originally designated for 2013
Despite the general position of the IRS
that a contribution designated for a particular plan year cannot be redesignated to
apply for another plan year after the
Schedule SB is filed, the plan sponsor may
choose to redesignate all or a portion of a
contribution that was originally designated as applying to the plan year beginning in 2013 to apply to a plan year that
begins in 2014. This rule applies only to
contributions made after the end of the
2013 plan year and on or before September 30, 2014 and applies only if the original designation is on a Schedule SB for
the 2013 plan year that is filed on or
before December 31, 2014.3
E. Procedural and timing rules
Any reversal of an election, election
made after the generally applicable deadline, or redesignation of contributions under this section IV is made by the plan
sponsor by providing written notification
to the plan’s enrolled actuary and plan
administrator, and must be made no later
than the last day of the plan year beginning in 2014. The written notification
must specify the name of the plan, the
employer identification number and plan
number, and must set forth the relevant
details, including the specific dollar
amount involved. A conditional or
formula-based election does not satisfy
this requirement.
V. REPORTING REQUIREMENTS
IF THE HATFA SEGMENT RATES
APPLY TO THE 2013 PLAN YEAR
With respect to the plan year beginning
in 2013, if the plan uses the segment rates
and the plan sponsor has not elected to
defer the use of the HATFA segment rates
in accordance with section III.A or III.B
of this notice, then the Schedule SB for

that plan year must reflect the use of the
HATFA segment rates.
VI. APPLICATION OF § 436 AND
RELATED RULES FOR A PLAN
YEAR BEGINNING AFTER
DECEMBER 31, 2012 AND BEFORE
OCTOBER 1, 2014
This notice provides special rules relating to the application of the benefit restrictions under § 436 and related rules for a
plan year beginning after December 31,
2012 and before October 1, 2014 for a
plan for which the modifications made by
HATFA to § 430(h)(2)(C)(iv) are applied
for purposes of determining the plan’s
AFTAP for the plan year. A plan year to
which this section VI applies is referred to
in this section VI as an applicable plan
year.
A. Presumptions apply based on prior
year AFTAP
The benefit restrictions under § 436 for
an applicable plan year are applied based
on the presumed AFTAP before the date,
if any, that the AFTAP is certified for that
applicable plan year. Thus, the application
of the HATFA segment rates does not
affect the application of the presumption
rules under § 436(h) for the first plan year
for which those rates apply to the plan for
purposes of § 436 (but affects the application of those presumption rules for the
subsequent plan year).
B. Rules if first certification uses
HATFA segment rates
If the first AFTAP certification for an
applicable plan year (which may be a
range certification pursuant to § 1.436 –
1(h)(4)(ii)) is made using the HATFA
segment rates, the benefit restrictions under § 436 apply based on that AFTAP in
accordance with the rules of §§ 1.436 –
1(g) and (h).
C. Rules if first certification uses
MAP–21 segment rates
If, on or before September 30, 2014,
the AFTAP for an applicable plan year is
certified using the MAP–21 segment rates,
the AFTAP for that applicable plan year
must be determined using the HATFA
segment rates. If the change in the AFTAP
using the HATFA segment rates rather
than the MAP–21 segment rates results in

a material change to the AFTAP, then the
AFTAP must be recertified. In such a
case, the plan sponsor can choose to apply
any resulting change in the application of
the benefit restrictions under § 436 either
(i) prospectively, as described in section
VI.D of this notice or (ii) retroactively to
the date that the AFTAP was originally
certified, as described in section VI.E of
this notice. If the HATFA segment rates
are applied to determine the certified
AFTAP for the plan year beginning in
2013, then the option to apply any change
in the application of § 436 as a result of
recertification of the AFTAP using the
HATFA segment rates prospectively is
not available for the plan year beginning
in 2014. For the first plan year for which
the HATFA segment rates apply for purposes of § 436, if the AFTAP using the
HATFA segment rates is certified before
the end of the plan year, then in the absence of an affirmative election to apply
the changes retroactively as described in
section VI.E of this notice, the plan sponsor will be treated as having elected to
apply any changes prospectively as described in section VI.D of this notice. All
plan operations and elections must be consistent with this choice of whether to apply the AFTAP using the HATFA segment rates retroactively or prospectively,
and any plan operations that were inconsistent with this choice must be corrected
as described in section VI.G of this notice.
If any AFTAP certification for an applicable plan year using the MAP–21 segment rates is made after September 30,
2014, then the rules regarding a change in
the AFTAP set forth in § 1.436 –
1(h)(4)(iii) and (iv) apply with respect to
the determination of the AFTAP for that
plan year that must be made using the
HATFA segment rates.
D. Prospective application of change in
benefit restrictions reflecting HATFA segment rates
If the AFTAP is certified for an applicable plan year using the MAP–21 segment rates, then any subsequent change to
that certification (including a certification
based on the HATFA segment rates) is
subject to the rules regarding a change in

3
With respect to a plan for which the Schedule SB need not be filed, as described in footnote 2 of this notice, the reference to filing of the Schedule SB is replaced by the completion and
delivery of the Schedule SB.

Bulletin No. 2014 – 43

739

October 20, 2014

the AFTAP set forth in § 1.436 –
1(h)(4)(iii) and (iv).
Section 1.436 –1(h)(4)(iii) sets forth
rules relating to changes in certified
AFTAPs and provides a special rule that
deems a change in the AFTAP attributable
to certain events as “immaterial,” even if
the change would otherwise be a material
change. The effect of having an event for
which the change in AFTAP is deemed
immaterial is that a plan administrator can
reflect the event on a prospective basis
beginning with the date of the event, provided that the AFTAP is recertified as
soon as practicable thereafter. It is expected that § 1.436 –1(h)(4)(iii)(C) will be
amended to provide that additional events
can be added to the list of deemed immaterial events in guidance of general applicability.
If (1) on or before September 30, 2014,
the AFTAP is certified for an applicable
plan year using the MAP–21 segment
rates, (2) a certification for that applicable
year is subsequently made using the
HATFA segment rates, and (3) the plan
sponsor does not choose to apply any
change in those restrictions retroactively
as described in section VI.E of this notice;
then the change in AFTAP attributable to
the use of the HATFA segment rates for
an applicable plan year under this section
VI.D is treated as a deemed immaterial
change. The date of the event is October
1, 2014 (or the date of the revised AFTAP
certification, if earlier). Accordingly, if
the plan sponsor chooses to apply any
changes in the § 436 restrictions prospectively for an applicable plan year as described in this section VI.D, any change in
benefit restrictions resulting from the updated AFTAP determination using the
HATFA segment rates must be effective
as of the earlier of (1) October 1, 2014, or
(2) the date the AFTAP for the applicable
plan year is recertified using the HATFA
segment rates.
The requirement that the AFTAP be
recertified to reflect the HATFA segment
rates as soon as practicable after the event
giving rise to the deemed immaterial
change will not be satisfied if the recertification occurs later than December 31,
2014.
E. Retroactive application of change in
benefit restrictions reflecting HATFA segment rates

October 20, 2014

If (1) on or before September 30, 2014,
the AFTAP is certified for an applicable
plan year using the MAP–21 segment
rates, (2) a certification for that applicable
plan year is subsequently made using the
HATFA segment rates, and (3) the plan
sponsor elects to apply the AFTAP determined using the HATFA segment rates
retroactively as described in this section
VI.E; then the operations of the plan must
be conformed to that updated AFTAP for
the period beginning when the AFTAP for
the plan year was originally certified. In
addition, if the HATFA segment rates apply for purposes of determining the
AFTAP for the plan year beginning in
2013, then operations of the plan during
the plan year beginning in 2014 must be
conformed to apply the rules of § 1.436 –
1(g) and (h) using the redetermined 2013
AFTAP as the AFTAP for the preceding
plan year, during the period beginning on
the first day of the plan year beginning in
2014 and ending when the AFTAP for
that plan year was originally certified.
F. Reversal of an election to reduce
funding balances and redesignation of
section 436 contributions for the 2014
plan year
Sections IV.A and IV.C of this notice
permit the reversal of an election to reduce a funding balance and the redesignation of a section 436 contribution for an
applicable plan year beginning in 2013.
Under this section VI.F, a reversal of an
election made on or before October 1,
2014 to reduce a funding balance or a
redesignation of a section 436 contribution made on or before October 1, 2014 is
permitted for the plan year beginning in
2014.
Any reversal of an election or redesignation of a section 436 contribution under
this section VI.F is not permitted to the
extent it would result in the imposition of
benefit restrictions under § 436 for the
plan year beginning in 2014 that would
otherwise not be imposed. Accordingly, if
the plan year beginning in 2014 is the first
applicable plan year, any reduction election that was made to avoid or remove
benefit restrictions under § 436 during the
period before the date of the original
AFTAP certification for that plan year
cannot be reversed. This is because the
AFTAP based on the HATFA segment
rates will not apply to that portion of the

740

plan year and therefore the reversal of any
reduction election that was made to avoid
or remove benefit restrictions under § 436
during that period would result in the imposition of new restrictions. Similarly, if
the plan year beginning in 2014 is the first
applicable plan year, no change is permitted with respect to section 436 contributions that were made in connection with a
presumed AFTAP before the AFTAP was
certified for the plan year.
G. Corrections
Once a plan’s AFTAP for an applicable plan year has been certified using the
HATFA segment rates, the plan administrator must take any corrective actions
necessary to conform plan operations to
this certified AFTAP, if applying this certified AFTAP would have changed the
application of the § 436 restrictions for the
period (1) beginning with the date of the
immaterial event described in section
VI.D of this notice (if the AFTAP certification applying the HATFA segment rates
applies prospectively under section VI.D)
or (2) beginning with the date the AFTAP
for the year was first certified, as applicable (if the AFTAP certification applying
the HATFA segment rates applies retroactively under section VI.E). If the plan
year beginning in 2013 is an applicable
plan year, the period for potential correction also includes the period during the
2014 plan year before the AFTAP for that
plan year beginning in 2014 was originally certified.
If the corrective actions described in
this section VI.G are taken to reflect the
application of the new certified AFTAP,
then the plan’s operations are treated as
having been consistent with the provisions
of the plan document relative to the requirements of § 436. For this purpose, the
provisions of the Employee Plans Compliance Resolution System (EPCRS), as
set forth in Rev. Proc. 2013–12, 2013– 4
I.R.B. 313, apply, except that a plan is
eligible for self-correction under sections
7, 8, and 9 of Rev. Proc. 2013–12 without
regard to the requirements of sections 4.03
(requiring a favorable IRS determination
letter) and 4.04 (requiring certain established practices and procedures) of that
revenue procedure.
Consistent with § 1.436 –1(a)(4)(iii), if
unpredictable contingent event benefits
due to an event occurring during a plan

Bulletin No. 2014 – 43

year beginning in 2013 or 2014 are not
permitted to be paid because of restrictions under § 436(b), but are later permitted to be paid as a result of a new certification of the AFTAP for the plan year
reflecting the HATFA segment rates, then
those unpredictable contingent event benefits must become payable, retroactive to
the period those benefits would have been
payable under the terms of the plan (other
than plan terms implementing the requirements of § 436(b)).
Consistent with § 1.436 –1(a)(4)(iv), if
a plan amendment with an effective date
during a plan year beginning in 2013 or
2014 does not take effect because of the
limitations of § 436(c), but is later permitted to take effect as a result of a new
certification of the AFTAP for the plan
year reflecting the HATFA segment rates,
then the plan amendment must automatically take effect as of the first day of that
plan year (or, if later, the original effective
date of the amendment).
For any prohibited payment that was
not permitted to be paid during a plan year
beginning in 2013 or 2014 because of the
restrictions under § 436(d), but is permitted to be paid as a result of a new certification of the AFTAP reflecting the
HATFA segment rates, the plan has taken
adequate corrective action if it makes the
prohibited payment available to participants or beneficiaries who would have been
eligible for the prohibited payment (including a prohibited payment that is available on
a restricted basis under § 436(d)(3)) on or
after the dates described in the first paragraph of this section VI.G.
For any accruals that were not permitted to accrue during a plan year beginning
in 2013 or 2014 because of restrictions
under § 436(e), but are permitted to accrue
as a result of a new certification of the
AFTAP reflecting the HATFA segment
rates, the plan has taken adequate corrective action if it restores benefits that accrue during the period that begins on the
date described in the first paragraph of this
section VI.G.
In the case of a participant or beneficiary who, as a result of any of the
changes described in this section VI.G is
entitled to increased benefits, to benefits
payable at a special early retirement date,
or to benefits payable in a different form
of payment (and who elects such different

Bulletin No. 2014 – 43

form of payment, with spousal consent, if
applicable), the required correction is to
provide the benefit payments in the increased amount or other form of payment
commencing with a new prospective annuity starting date. However, if payments
have already commenced, the correction
is to provide the participant with (1) future
benefit payments that are paid in the same
manner and amount as if the participant
had begun receiving the corrected payment at his or her original annuity starting
date, and (2) a make-up for past underpayments. The make-up for past underpayments is equal to the aggregate difference between the past payments actually
received and the amounts that would have
been received had the benefit commenced
in the correct form of payment at the
participant’s original annuity starting date,
plus interest to the date of the correction (in
accordance with EPCRS), and may be paid
as either (i) a single-sum payment, or (ii) an
actuarially equivalent increase in the
amount of future benefit payments.
VII. PAPERWORK REDUCTION
ACT
The collections of information contained in this notice have been reviewed
and approved by the Office of Management and Budget in accordance with the
Paperwork Reduction Act (44 U.S.C.
§ 3507) under control number 1545-2095.
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays
a valid OMB control number.
The collections of information in this
notice are in sections III, IV, and VI of
this notice. The collections of information
are required to implement the application
of the funding relief under section 2003 of
HATFA. The collections of information
are mandatory for those plan sponsors
making various elections when applying
the amendments made by HATFA to a
plan and any plan sponsor of a plan for
which the 2014 AFTAP was certified using MAP–21 segment rates.
For the collections in section III of this
notice (relating to the election and possible amendment of Schedule SB for the
2013 plan year), the estimated total number of respondents is 39,600 plans. The
estimated annual burden per respondent

741

varies from 15 minutes to 1 hour and 45
minutes, depending on individual circumstances, with an estimated average of 23
minutes. The estimated total annual reporting and/or recordkeeping burden is
15,200 hours.
For the collections in sections IV and
VI of this notice (relating to elections regarding the application of benefit restrictions under § 436), the estimated total
number of respondents is 37,000 plans.
The estimated annual burden per respondent varies from 15 minutes to 45 minutes, depending on individual circumstances, with an estimated average of 37
minutes. The estimated total annual reporting and/or recordkeeping burden is
22,800 hours.
Estimates of the annualized cost to respondents are not relevant, because each
collection of information in this notice is a
one-time collection.
Books or records relating to a collection of information must be retained as
long as their contents may become material in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by § 6103.
VIII. DRAFTING INFORMATION
The principal authors of this notice are
Tonya B. Manning and Carolyn E. Zimmerman of the Employee Plans, Tax Exempt and Government Entities Division.
For further information regarding this notice, please contact the Employee Plans
taxpayer assistance answering service at
1-877-829-5500 (a toll free number) or
e-mail Ms. Manning or Ms. Zimmerman
at [email protected].

Extension of Replacement
Period for Livestock Sold
on Account of Drought
Notice 2014 – 60
SECTION 1. PURPOSE
This notice provides guidance regarding an extension of the replacement period
under § 1033(e) of the Internal Revenue
Code for livestock sold on account of
drought in specified counties.

October 20, 2014