Overview
Final Transitional Rules for Hybrid Retirement Plans Released: Today the Treasury Department released final regulations (TD 9743) that provide guidance regarding certain amendments to applicable defined benefit plans, which are defined benefit plans that use a lump sum-based benefit formula, including cash balance plans and pension equity plans, as well as other plans that have formulas with an effect similar to a lump sum-based benefit formula. These final regulations permit a plan sponsor of an applicable defined benefit plan that does not comply with the market rate of return requirement to amend the plan in order to change to an interest crediting rate that is permitted under the previously issued final hybrid plan regulations without violating the anti-cutback rules of section 411(d)(6).
Miscellaneous Guidance:
Today the IRS released Notice 2015-78, which provides guidance regarding qualified student loan bonds under section 144(b) to clarify certain requirements for tax-exempt bond financing for loan programs of general application approved by a state under section 144(b)(1)(B).
Additionally, the IRS released Notice 2015-80, which provides guidance on the corporate bond monthly yield curve, the 24-month average segment rates, the 30-year Treasury securities interest rate, the 30-year Treasury weighted average rate, and the minimum present-value segment rates for November.