PLR 200622057: IRS extends deadline to secure pension funding waivers

Number

200622057

Outcome

Approved

Document type

Private Letter Ruling

IRS subject

Minimum Funding Waiver

Topics

Retirement plans, IRAs, and annuities

Code sections

§ 6110

Ruling dated

March 10, 2006

Publicly released

June 2, 2006

Source

View Official PDF

Apply this to your situation

This page covers one taxpayer's ruling, issued in 2006, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.

About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.

Transcribed from a scanned original: the IRS released this determination as an image-only PDF. The full text below is a machine transcription, proofread against the scan. Check the original PDF before quoting exact language.

View official IRS release (PDF)

Plain-English summary

A taxpayer had received minimum funding waivers for six pension plans, covering seven plan years. The earlier ruling letters required the taxpayer to secure those waivers in a way acceptable to the Pension Benefit Guaranty Corporation within sixty days. The taxpayer said it could not finish negotiations within that time. The IRS modified the letters so the waivers could instead be secured by June 13 of a redacted year. The ruling changes the security deadline for existing waivers; it does not grant additional waivers.

Ruling snapshot

Question: Could the taxpayer have more time to secure its existing pension funding waivers with the Pension Benefit Guaranty Corporation?
Outcome: Approved; the security deadline was changed to June 13 of a redacted year.
Key authorities: The earlier waiver ruling letters; IRC § 6110(k)(3) limits use as precedent.

Full text (IRS public release)

Significant Index No. 0412.06-00
200622057

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

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

MAR 10 2006

T:EP:RA:T:AZ

In re:

This letter constitutes notice that we have modified the conditions with regard to the time periods in which the waivers were to be secured in a manner acceptable to the Pension Benefit Guaranty Corporation set forth in our ruling letters of November 17, 2004, granting waivers of the minimum funding standards. The particular plans and plan years are as follows:

200622057

(1) the plan years ended December 31, , and December 31, for the X Plan.

(2) the plan year ended December 31, , for the Hourly Plan.

(3) the plan year ended December 31, , for the Corporation Plan

(4) the plan year ended December 31, , for the A Plan.

(5) the plan year ended December 31, , for the B Plan.

(6) the plan year ended December 31, , for the C Plan.

Under the terms of each of the ruling letters of November 17, 2004, the waivers for the plan years ended December 31, , (and December 31, , in the case of the X Plan) were subject to the condition that the waivers shall be secured within sixty days of date of the applicable ruling letter in a manner acceptable to the PBGC. According to the information submitted with the request you were unable to complete your negotiations with the PBGC within sixty days of the date of the ruling letters but will be able to secure the waivers in a manner acceptable to the PBGC by June 13, .

Accordingly, our letters of November 17, 2004, are modified to read as follows:

Re: the X Plan

The waiver of the minimum funding standard for the plan year ended December 31, , shall be secured by June 13, , in a manner acceptable to the PBGC.

Re: the Hourly Plan

The waiver of the minimum funding standard for the Hourly Plan for the plan year ended December 31, , shall be secured by June 13, , in a manner acceptable to the PBGC.

200622057

Re: the Corporation Plan

The waiver of the minimum funding standard for the Corporation Plan for the plan year ended December 31, , shall be secured by June 13, , in a manner acceptable to the PBGC.

Re: the A Plan

The waiver of the minimum funding standard for the A Plan for the plan year ended December 31, , shall be secured by June 13, , in a manner acceptable to the PBGC.

Re: the B Plan

The waiver of the minimum funding standard for the B Plan for the plan year ended December 31, , shall be secured by June 13, , in a manner acceptable to the PBGC.

Re: the C Plan

The waiver of the minimum funding standard for the C Plan for the plan year ended December 31, , shall be secured by June 13, , in a manner acceptable to the PBGC.

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.

A copy of this letter is being sent to your authorized representative in accordance with a power of attorney (Form 2848) on file. A copy of this letter is also being sent to the Manager, Employee Plans Classification in and to the Manager, Employee Plans Compliance Unit in . A copy of this letter should be furnished to the enrolled actuary for the plan.

If you have any questions on this ruling letter, please contact

Sincerely,

Carol D. Gold
Director, Employee Plans

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