News Notes: IRS Clarifies Pension Amendment Notice Rules

The Internal Revenue Service has issued new regulations which clarify that plan administrators must provide 15 days’ written notice before the effective date of retirement plan amendments which result in a significant reduction in future benefit accrual. The rules apply to both defined benefit and money purchase plans. If some plan participants don’t receive notice of an amendment, it may be nullified for all participants unless the plan administrator acted in good faith and only a minimal number of people were affected. For details, contact the IRS at (213) 894-2291.