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March 17, 2008
Later Effective Date for Pension Funding Regs
Employers have additional time to comply with new funding regulations included in the Pension Protection Act of 2006 (PPA), the U.S. Treasury Department and the Internal Revenue Service (IRS) recently announced in Notice 2008-21.

None of the proposed funding rules will be effective before the first plan year beginning on or after January 1, 2009, according to the Treasury. However, the agencies said that employers may rely on the regulations during 2008.

The extension was announced in an effort to have a uniform effective date for guidance under Internal Revenue Code Section 430, which was added by the PPA and addresses minimum funding requirements that apply to single employer pension plans.

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