IRS provides Q&As on pension funding stabilization  

September 11: The IRS today released an advance copy of Notice 2012-61 providing guidance in question-and-answer (Q&A) format with respect to the rules relating to pension funding stabilization for single employer defined benefit pension plans, and reflecting changes made by the Moving Ahead for Progress in the 21st Century Act (enacted July 6, 2012) (MAP 21).

Text of the notice: Notice 2012-61 [PDF 246 KB] (This link may expire; it will be replaced with a new link shortly)


The IRS in August 2012 issued Notice 2012-55 setting forth the initial MAP 21 segment rates. See TaxNewsFlash 2012-389. That guidance addressed the 25-year average segment rates that are applied to adjust the otherwise applicable 24-month average segment rates that are used to compute the funding target and other items under minimum funding requirements that generally apply to single-employer defined benefit pension plans.


Notice 2012-61 provides lists of questions and answers concerning:


  • General guidance relative to application of MAP 21 segment rates
  • Measurements for which MAP 21 segment rates do not apply
  • Statutory hybrid plans
  • Transition issues
  • MAP 21 elections
  • Schedule SB reporting

Notice 2012-61 will appear in a future edition of the Internal Revenue Bulletin.




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