August 7, 1989
TO: PENSION MEMBERS NO. 39-89
RE: IRS NOTICE EXTENDING DEADLINE FOR TERMINATING PLANS
__________________________________________________________
Attached is a copy of IRS Notice 89-92, which provides
additional guidance and clarification concerning issues raised in
Notice 88-131. The earlier notice provided relief from the
requirements of section 411(d)(6) for sponsors of qualified plans
in order to provide time to review regulations and make decisions
about benefit program redesign. (See Institute Memorandum to
Pension Members No. 52-88, dated December 22, 1988.)
Notice 88-131 included a model amendment which, if adopted
on or before May 31, 1989 along with termination of the plan
after the first day of the plan year beginning in 1989 and before
June 1, 1989, generally would permit the plan to be deemed in
compliance with those qualification requirements of the Code that
first became effective as of the first day of the first plan year
beginning on or after January 1, 1989. Under Notice 89-92, the
May 31, 1989 deadline is extended to December 31, 1989.
Plan sponsors that adopt this model amendment must provide
a written notice to plan participants and other interested
parties after the adoption of the amendment and not less than 15
days before the effective date of the amendment under section
204(h) of ERISA. Therefore, the last possible date for adopting
this model amendment and for providing the notice under section
204(h) of ERISA is December 16, 1989, and the effective date of
the plan termination must be no later than December 31, 1989.
We will keep you informed of further developments.
Kathy D. Ireland
Assistant General Counsel
Attachment