July 2, 1992
TO: PENSION COMMITTEE NO. 23-92
RE: FURTHER PROPOSED REVISIONS TO NONDISCRIMINATION REGULATIONS
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Attached are copies of IRS Notices 92-31 and 92-32, which
propose changes to the final regulations under sections
401(a)(4), 401(l) and 414(s) in order to increase the number of
plans that can rely upon the safe harbors under the regulations.
Notice 92-31 proposes to modify the safe harbor
requirements to: (1) eliminate uniformity rules for vesting and
service crediting; (2) reduce restrictions on service credit with
another employer or during a leave of absence; (3) reduce
restrictions on permitted offsets; (4) expand imputed
compensation rules in section 414(s) for leaves of absence and
transfers; (5) allow compensation adjustments for transferred
employees; and (6) relax fresh-start rules.
Notice 92-32 proposes to add a safe harbor to the
regulations under sections 401(a)(4) and 401(l) that would apply
to a defined benefit design under which an employee’s benefit is
offset by a percentage of the employee’s primary insurance amount
under Social Security ("PIA").
We will keep you informed of further developments.
Kathy D. Ireland
Associate Counsel - Pension
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