by Joseph S. Adams, Anne S. Becker and Stephen Pavlick

In October 2011, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued Notice 2011-85 (Notice), announcing their intent to extend certain requirements applicable to hybrid pension plans such as cash balance plans.  Given the highly technical nature of cash balance plans and the related government guidance, it is important to carefully understand the scope of the relief.  In a separate matter affecting cash balance plans, the Pension Benefit Guaranty Corporation also recently published a proposed rule on terminating cash balance and hybrid plans.  The proposed rule is intended to implement changes made by the Pension Protection Act of 2006. Comments on the proposed rule are due December 30, 2011. 

Please click here for more information on this recent guidance.