The Internal Revenue Service and the Treasury Department have proposed two sets of regulations relating to pension plans.
One of the proposed regulations, for cash balance plans and other hybrid pension plans, interprets rules that were added to the tax law by the Pension Protection Act of 2006. The proposals include an age discrimination safe harbor for hybrid pension plans, conversion protection for employees and a three-year minimum-vesting requirement.
The other proposed regulations provide employers sponsoring single-employer defined-benefit plans with guidance regarding the measurement of pension assets and liabilities under the PPA's new funding rules.
