Updates to Minimum Present Value Requirements for Defined Benefit Plan Distributions Issued

Updates to Minimum Present Value Requirements for Defined Benefit Plan Distributions Issued:  Today, Treasury and the IRS issued proposed regulations updating the minimum present value requirements for defined benefit plan distributions.  These proposed regulations amend the current final regulations under section 417(e) regarding the minimum present value requirements of section 417(e)(3).  Specifically, the proposed regulations would update the regulations for changes made by the Pension Protection Act of 2006, including the new interest rates and mortality tables set forth in section 417(e)(3) and the exception from the valuation rules for certain applicable defined benefit plans set forth in section 411(a)(13).  Additionally, the proposed rule would eliminate certain obsolete provisions relating to the transition from pre-1995 law to the interest rates and mortality assumptions provided by the General Agreement on Tariffs and Trade.