PLR 200512033: IRS extended a deadline in a pension funding waiver

Plain-English summary

The IRS had previously granted a conditional waiver of a pension plan's minimum funding standard. One condition required the company to reach an agreement with the Pension Benefit Guaranty Corporation (PBGC) about securing repayment of the waived amount by a deadline. The company reported that it reached a tentative agreement before that deadline, although the formal documents were signed later. The IRS modified its earlier ruling to extend the agreement deadline. The public letter redacts both the old and new dates.

Ruling snapshot

• Question: Could the deadline for reaching a PBGC security agreement under an existing pension funding waiver be changed?
• Outcome: Approved; the IRS modified the earlier conditional waiver.
• Key authorities: Prior IRS ruling dated October 14, 2003; IRC § 412 (index classification).

Full text (IRS public release)

Significant Index No. 0412.06-00

DEPARTMENT OF THE TREASURY
200512033
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

DEC 29 2004

[handwritten notation: SE TE/EP/RA:TA2]

In re: [redacted]

Company = [redacted]

This letter constitutes notice that the conditional waiver of the minimum funding standard for the above-named plan for the plan year ending [redacted] which was granted in our ruling letter dated October 14, 2003, has been modified by changing the deadline by which an agreement must be reached with the Pension Benefit Guaranty Corporation (“PBGC”) on securing repayment of the waived amount from
[redacted] to [redacted].

According to information submitted with the request, a tentative agreement on security was reached with the PBGC before the [redacted] deadline. However, the official documents were not signed until [redacted].

This ruling is directed only to the taxpayer that requested it. Section 6110(k)(3) of the Code provides that it may not be used or cited by others as precedent.

We have sent a copy of this letter to the Manager, EP Classification in [redacted]; to the Manager, EP Compliance Unit in [redacted] and to your authorized representative pursuant to a power of attorney on file in this office.

Page 2 200512033

If you require further assistance in this matter, please contact [redacted].

Sincerely yours,

[signature]

Carol D. Gold
Director, Employee Plans