Determination 200547020: Deadline modified for pension funding waiver security agreement

Plain-English summary

The IRS notified a taxpayer that it had modified an earlier conditional waiver of a pension plan's minimum funding standard. The change moved the deadline for reaching an agreement with the Pension Benefit Guaranty Corporation on security for repayment of the waived amount from January 15 to December 31; the years are redacted. According to the letter, the parties had been negotiating before the original deadline but did not reach a final agreement until December. The public release does not provide the underlying waiver terms.

Ruling snapshot

• Question: What deadline applied to the security agreement required by an earlier conditional minimum funding waiver?
• Outcome: Approved modification of the agreement deadline to December 31 of a redacted year.
• Key authorities: IRC § 412; the prior waiver ruling, whose terms are not included here.

Full text (IRS public release)

Significant Index Nos. 0412.06-00
200547020

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

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

AUG 29 2005

Taxpayer =

This letter constitutes notice that the conditional waiver of the minimum funding standard for the above-named Plan for the plan year ending December 31, [redacted], which was granted in our ruling letter dated October 14, [redacted] 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 January 15, [redacted] to December 31, [redacted].

According to information submitted with the request, a tentative agreement on security was being negotiated with the PBGC before the January 14, [redacted] deadline. However, final agreement was not reached until December [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.

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

Sincerely yours,

Carol D. Gold
Director, Employee Plans