Guidance 2014 Final Hybrid Regulations Final regulations (TD 9505) concerning hybrid defined benefit plans under IRC Sections 411(a)(13) and 411(b)(5) were published in 2010. These final regulations provide additional guidance for hybrid defined benefit plans under these Code Sections and Section 411(b)(1). In particular, they offer guidance on: the scope of relief under Section 411(a)(13)(A), a special rule on applying the 133 1/3 percent rule under Section 411(b)(1)(B) to hybrid defined benefit plans, the market rate of return limitation under Section 411(b)(5)(B)(i), and the plan termination rules of Section 411(b)(5)(B)(vi). Notice 2011-85 Issued October 12, 2011, announces the postponement of effective dates for certain hybrid defined benefit plan interest crediting rules. Notice 2012-61 PDF Guidance on interest crediting rate as a result of MAP-21 Revenue Procedure 2018-21 PDF This revenue procedure modifies sections of Rev. Proc. 2015-36 to allow pre-approved defined benefit plans containing a cash balance formula to provide for the actual rate of return on plan assets as the rate used to determine interest credits. This revenue procedure also modifies a section of Rev. Proc. 2017-41: on the rates permitted to determine interest credits in pre-approved defined benefit plans containing a cash balance formula and references to "hypothetical interest" and "hypothetical interest credits" in Rev. Proc. 2015-36 to "interest credits," consistent with terminology in Rev. Proc. 2017-41. Announcement 2009-82 Announces relief for sponsors of statutory hybrid plans that must amend the interest crediting rate in those plans. Plan sponsors may rely on this announcement pending publication of the final regulations and proposed regulations relating to statutory hybrid plans. The regulations will include rules interpreting the requirement in Internal Revenue Code Section 411(b)(5)(B)(i) that such plans not have an interest crediting rate in excess of a market rate of return. The rules in the regulations specifying permissible market rates of return are not expected to go into effect before the first plan year that begins on or after January 1, 2011 Revenue Ruling 2008-07 Provides that whether the fractional rule would be applicable to any given plan would depend heavily on individual participants' compensation history and interest rates credited under the plan and would not necessarily be sustainable for long periods of time. Section 401(a)(26) Issue Arising in Cash Balance Plan Determination Letter Applications PDF Memorandum addressing questions raised about whether certain newly established defined benefit plans with cash balance formulas provide "meaningful benefits" for employees. Employee Plans News - November 5, 2010 - Hybrid Defined Benefit Plans - Final and Proposed Regulations Highlights of recent guidance on hybrid defined benefit plans. Issue Snapshots How to change interest crediting rates in a cash balance plan, issued 5/30/2018 Definitely Determinable Cash Balance Benefit Formulas, issued 4/7/2017
