TD 9467 (AFTAP) - The previously approved Regulations under sections 430(d), 430(g), 430(h)(2), and 430(i) provide guidance on the determination of benefit liabilities and the valuation of plan assets for purposes of the funding requirements that apply to single employer defined benefit plans pursuant to changes made by the Pension Protection Act of 2006. In order to implement the statutory provisions under section 430(h)(2), the regulations provide for the sponsor of a defined benefit plan to make any of several elections related to the interest rate used for minimum funding purposes and require written notification of any such election to be provided to the plan's enrolled actuary. These final regulations provide for the sponsor of a defined benefit pension plan to make any of several elections.
Notice 2020-60 states that an election by the plan sponsor to apply IRC section 430(m) must be provided in writing to the community newspaper planâs actuary, plan administrator, and controlled group members. Notice 2022-31 requires the plan sponsor to notify the plan actuary and administrator of the election. Absent this notification, the community newspaper planâs actuary, plan administrator, and controlled group members may not be aware that the plan sponsor is electing to apply IRC section 430(m).
US Code:
26 USC 436
Name of Law: Funding-based limits on benefits and benefit accruals under single-employer plans
PL:
Pub.L. 116 - 94 115(a)
Name of Law: Setting Every Community Up for Retirement Enhancement Act
US Code:
26 USC 430
Name of Law: Minimum funding standards for single-employer defined benefit pension plans
PL:
Pub.L. 109 - 280 104 thru 106 and 402
Name of Law: Pension protection Act of 2006
PL:
Pub.L. 110 - 458 122
Name of Law: Worker, Retiree, and Employer Recovery Act of 2008
There are changes to the collection and paperwork burden previously approved by OMB. The election under Internal Revenue Code section 3608(b) of the CARES Act (Notice 2020-61) is no longer relevant. It is an election to treat a DB plan's adjusted funding target attainment percentage (AFTAP) for the last plan year ending before January 1, 2020, as the AFTAP for plan years that include calendar year 2020. The election under Notice 2021-48 was for extended amortization bases to apply the extended amortization period for shortfall amortization bases for plan years beginning after December 31, 2018, December 31, 2019, or December 31, 2020. This extended period now applies for all DB plans. The election was available on a temporary basis and is no longer available. The agency has changed the estimated number of respondents for Notices 2020-60 and 2022-31 from 20 to 2 as it is expected that any community newspaper plan sponsor that wanted to make this election have made it already, and the plan sponsors that are eligible for this election would be very small. TD 9467 remains the same with the same estimates as previously approved by OMB. These changes result in a decrease of responses by 161,018 and decrease in overall burden hours by 41,072 hours.
$0
No
No
No
No
No
No
Yes
Linda Marshall 202 317-6700
No
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
1545-2095 Supporting Statement 2025-JC.docx
Guidance on Single-Employer Defined Benefit Pension Plan Funding Changes under the American Rescue Plan Act of 2021