October 24, 1991
TO: PENSION MEMBERS NO. 36-91
INSTITUTE PROTOTYPE PLAN MASS SUBMITTERS
RE: IRS MODIFICATIONS TO MASTER AND PROTOTYPE PROGRAM
__________________________________________________________
Attached is a copy of Revenue Procedure 91-41, which sets
forth procedures for IRS determination letter applications.
Section 6 of the revenue procedure modifies Section 6 of
Revenue Procedure 89-9 with respect to the extent of employer
reliance upon an opinion letter with respect to a standardized
prototype plan. (See Institute Memorandum to Pension Members No.
7-89, dated February 8, 1989.) Under the new procedure, an
employer that has adopted a standardized plan may not rely on an
opinion letter with respect to: (a) whether any amendment to the
plan (or series of amendments) satisfies the nondiscrimination
requirements of section 1.401(a)(4)-5(a) of the IRS regulations;
(b) whether the plan satisfies the effective availability
requirement of Q&A-2(a)(3) of section 1.401(a)-4 of the
regulations with respect to any benefit, right, or feature; (c)
whether any provision or amendment granting past service credit
does not have the effect of discriminating significantly in favor
of highly compensated employees; or (d) whether a benefit, right,
or feature that is prospectively eliminated as a result of
adoption of a standardized plan as an amendment to a plan other
than a standardized plan satisfies the current availability
requirement. Further IRS guidance concerning procedures for
requesting a determination letter with respect to (c) and (d)
will be provided at a later date.
We will keep you informed of developments.
Kathy D. Ireland
Associate Counsel - Pension
Attachment