Notice 2008-87, 2008-42 IRB

IRS, the Dept. of Labor's Employee Benefits Security Administration (EBSA), and the Pension Benefit Guaranty Corporation (PBGC) are providing relief for qualified defined benefit plans affected by Hurricane Ike. The relief provided—generally deferring various funding deadlines to Dec. 15, 2008—is in addition to the relief already provided by IRS, EBSA, and the PBGC to victims of Hurricane Ike.

What's affected. IRS is deferring the due date that must be met for a variety of minimum funding related rules relating to affected plans (defined below) that are subject to pre- or post-Pension Protection Act of 2006 (PPA) law including:

• For periods for which relevant changes made by PPA do not apply (generally plan years beginning before Jan. 1, 2008), if the date described in Code Sec. 412(c)(10) or Code Sec. 412(m) and ERISA § 302(c)(10) or ERISA § 302(e) for making a contribution falls within the period beginning on Sept. 7, 2008, and ending on Dec. 15, 2008, then the deadline for that contribution is postponed to Dec. 15, 2008. If the deadline described in Code Sec. 412(d)(4) and ERISA § 303(d)(1) for applying for a waiver for an affected plan falls within the period beginning on Sept. 7, 2008, and ending on Dec. 15, 2008, then that deadline is postponed to Dec. 15, 2008.
• For periods for which relevant changes made by PPA apply (generally plan years beginning after Dec. 31, 2007), if the date described in Code Sec. 430(j)(1) or Code Sec. 430(j)(3) and ERISA § 303(j)(1) or ERISA § 303(j)(3) for making a contribution falls within the period beginning on Sept. 7, 2008, and ending on Dec. 15, 2008, then the date for that contribution is postponed to Dec. 15, 2008. If the date described in Code Sec. 412(c)(5) and ERISA § 302(c)(5) for applying for a waiver for an affected plan falls within the period beginning on Sept. 7, 2008, and ending on Dec. 15, 2008, then that deadline is postponed to Dec. 15, 2008.

Notice 2008-87 also prescribes deferred due dates for multiemployer defined benefit plans.
Which plans get relief. A plan is an affected plan entitled to the relief in Notice 2008-87 only if any of the following were located in the counties of Brazoria, Chambers, Galveston, Harris, Jefferson, Liberty, Montgomery, or Orange in the State of Texas as of Sept. 7, 2008:

• the principal place of business of the employer that maintains the plan (in the case of a single-employer plan, determined by disregarding the controlled group rules of Code Sec. 414(b) and Code Sec. 414(c);
• the principal place of business of employers that employ more than 50% of the active participants covered by the plan (in the case of a plan covering employees of more than one employer, determined by disregarding the controlled group rules of Code Sec. 414(b) and Code Sec. 414(c);
• the office of the plan or the plan administrator;
• the office of the primary recordkeeper serving the plan; or
• the office of the enrolled actuary or other advisor that had been retained by the plan or the employer at the time of the storm to determine the funding requirements or certifications for which the due date falls between the period beginning on Sept. 7, 2008, and ending on Dec. 15, 2008.

RIA Research References: For minimum funding standards, see FTC 2d/FIN ¶ H-7600; United States Tax Reporter ¶ 4124; TaxDesk ¶ 286,015.

Source:  Federal Taxes Weekly Alert (preview) 10/09/2008, Volume 54, No. 41