With the current difficult economic times and the changing rules and regulations from the Department of Labor ("DOL"), Internal Revenue Service ("IRS") and other regulators, it is essential that companies understand the impact on their benefit plans and their benefit plans’ audits. This is why, over the next few weeks, we’ll be updating you on changing rules and regulations and their impact on employee benefit plan audits.
This week’s topic:
New Temporary Pension Funding Relief
On December 23, 2008, President Bush signed the Worker, Retiree and Employer Recovery Act of 2008 (the "Act"). Among other provisions, the Act provided technical corrections to the Pension Protection Act of 2006 ("PPA") and provided relief for defined benefit sponsors to ease their pension funding obligations over the next few years. Revisions to the PPA allow companies to smooth out unexpected asset losses arising from current economic conditions when determining how much they must contribute to reach required funding levels.
For more information on employee benefit plan audits, please leave a comment below, or contact Dani Gisondo at 440-449-6800.