PLR 200341021: IRS modifies security condition for pension funding waiver

Plain-English summary

A company asked the IRS to modify a condition in an earlier ruling concerning its pension plan. The IRS granted the request. As modified, the condition requires the company to provide the plan with security satisfactory to the Pension Benefit Guaranty Corporation by a redacted date. The security must cover specified quarterly contributions under IRC § 412(m)(4), calculated as though no waiver had been granted for the plan year. The public letter does not disclose the earlier ruling's date or the contribution due dates.

Ruling snapshot

• Question: Would the IRS modify the security condition in its earlier pension funding ruling?
• Outcome: Approved; the modified condition requires security for specified quarterly contributions.
• Key authorities: IRC § 412(m)(4).

Full text (IRS public release)

Significant Index No. 0412.06-00

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE 200341021
WASHINGTON, D.C. 20224

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

JUL 15 2003

Re:

Plan No.:
EIN:

Company =

Dear

This letter constitutes notice that the request of , made by your authorized representative for a modification of condition 1 of our ruling letter of is granted.

As modified, condition 1 of our ruling letter of , requires that

By , the Company will provide the Plan with security in a manner satisfactory to the Pension Benefit Guaranty Corporation (PBGC) for the sum of the required quarterly contributions under section 412(m)(4) of the Code that are due on and (calculated as if no waiver for the plan year had been granted).

If you have any questions concerning this letter, please contact ( ) In any correspondence relating to this letter, please refer to T:EP:RA:T:A2 as well.

Sincerely,

Carol D. Gold, Director
Employee Plans