PLR 1311044: IRS approves a five-year automatic amortization extension for a multiemployer plan

Plain-English summary

The IRS approved a five-year automatic extension for a multiemployer plan to amortize unfunded liabilities. The extension applies to eligible amortization charge bases identified in the application. The ruling states that the plan submitted the information required by section 431(d)(1), including the actuary’s certification concerning funding deficiencies, a funding-improvement plan, projected assets, and required notice.

Ruling snapshot

• Question: What relief did the IRS grant under the applicable rollover or pension funding rules?
• Outcome: Approved.
• Key authorities: IRC § 431

Full text (IRS public release)

Significant Index Number 0431.00-00 3 0 1 3
DEPARTMENT OF THE TREASURY : 11 04 4
INTERNAL REVENUE SERVICE

WASHINGTON, D.C. 20224

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

DEC 122012
Fi EPMA AL

Re:
(Plan No. _ ) (“Plan”)
EIN:

Taxpayer =

Dear

vaddga

This letter constitutes notice that approval has been granted for your request for
a 5-year automatic extension for amortizing the unfunded liabilities as of
, for the above-named Plan which are described in sections
431(b)(2)(B) and 431(b)(4) of the Internal Revenue Code (“Code”), and sections
304(b)(2)(B) and 304(b)(4) of the Employee Retirement Income Security Act of
1974 (“ERISA”). This extension is effective with the plan year beginning
_ This extension applies to the eligible amortization charge bases as

identified in your application submission.

The extension of the amortization periods of the unfunded liabilities of the Plan
was granted in accordance with section 431(d)(1) of the Code. Section
431(d)(1)(A) of the Code requires the Secretary to extend the period of time
required to amortize any unfunded liability of a plan for a period of time (not in
excess of 5 years) if the Plan submits an application meeting the criteria stated in
section 431(d)(1)(B). The plan has submitted the required information to meet
the criteria in section 431(d)(1)(B), including a certification from the plan's actuary

that:

(i) absent the extension under subparagraph (A), the sabi
plan would have an accumulated funding deficiency in the cg te
current plan year or any of the 9 succeeding plan years, .

(ii) the plan sponsor has adopted a plan to improve the —
plan's funding status,

2 201311044

(iii) the plan is projected to have sufficient assets to
timely pay expected benefits and anticipated expenditures
over the amortization period as extended, and

(iv) the notice required under paragraph (3)(A) has been
provided.

We have sent a copy of this letter to the Manager, EP Classification in ‘’
_ to the Manager, EP Compliance Unit in | , ‘, and to your
authorized representative pursuant to a power of attorney on file in this office.

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

as precedent.

If you require further assistance in this matter, please contact

(ID# ) at
Sincerely yours, | -
David M. Ziegler
Manager, EP Actuarial Group 2

cc: