The Treasury Department and the Internal Revenue Service issued guidance on new pension-funding rules included in the Pension Protection Act of 2006.
For plan years beginning before Jan. 1, 2009, employers may generally rely on a reasonable interpretation of the funding rules in the statute and on the proposed regulations. The notice also provides transitional relief to small plans with end-of-year valuation dates for purposes of applying the applicable benefit restrictions for underfunded pension plans for 2008.