TaxNewsFlash-Exempt Organizations

March 5, 2008
No. 2008-19

IRS Guidance for Determining Present Values for Employees Entitled to Disability Benefits, and on Pension Protection Act Measures That Are Effective in 2008

The IRS today released advance copies of the following guidance:

Notice 2008-29 which provides that employers who maintain qualified defined benefit pension plans can continue to use the mortality tables in Rev. Rul. 96-7, to determine present values with respect to individuals who are entitled to benefits as a result of a disability. The notice reflects changes to the minimum funding requirements under the Pension Protection Act of 2006.

Notice 2008-30 which, in question-and-answer format, addresses various issues related to distributions when Pension Protection Act provisions first become effective in 2008. Notice 2008-30 also addresses the issue of gap-period earnings and the plan amendment process.

Electronic versions of today’s items are provided at the hyperlinks, above.

Notice 2008-29 and Notice 2008-30 will appear in Internal Revenue Bulletin 2008-12, dated March 24, 2008.

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

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