[Federal Register Volume 72, Number 217 (Friday, November 9, 2007)]
[Proposed Rules]
[Pages 63528-63529]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-21964]



[[Page 63528]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-113891-07]
RIN 1545-BG72


Benefit Restrictions for Underfunded Pension Plans; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to notice of proposed rulemaking.

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SUMMARY: This document contains corrections to a notice of proposed 
rulemaking (REG-113891-07) that was published in the Federal Register 
on Friday, August 31, 2007 (72 FR 50544) providing guidance regarding 
the use of certain funding balances maintained for defined benefit 
pension plans and regarding benefit restrictions for certain 
underfunded defined benefit pension plans. These regulations affect 
sponsors, administrators, participants, and beneficiaries of single 
employer defined benefit pension plans.

FOR FURTHER INFORMATION CONTACT: Lauson C. Green or Linda S.F. Marshall 
at (202) 622-6090 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The correction notice that is the subject of this document is under 
sections 430(f) and 436 of the Internal Revenue Code.

Need for Correction

    As published, the notice of proposed rulemaking (REG-113891-07) 
contains errors that may prove to be misleading and are in need of 
clarification.

Correction of Publication

    Accordingly, the publication of proposed rulemaking (REG-113891-
07), which was the subject of FR Doc. 07-4262, is corrected as follows:
    1. On page 50544, column 3, in the preamble, under the paragraph 
heading ``Background'', second line of the footnote number 1 at the 
bottom of the column, the language ``Security Act of 1974, as amended 
(ERISA) sets forth'' is corrected to read ``Security Act of 1974, as 
amended (ERISA), sets forth''.
    2. On page 50547, column 3, in the preamble, under the paragraph 
heading ``F. Elections Under Section 430(f)'', twelfth line from the 
bottom of the column, the language ``the plan year, before the last day 
of the'' is corrected to read ``the plan year, on or before the last 
day of the''.
    3. On page 50548, column 1, in the preamble, under the paragraph 
heading ``F. Elections Under Section 430(f)'', tenth line of the first 
paragraph of the column, the language ``Form 5500 (with extensions) 
while an'' is corrected to read ``Form 5500 (with extensions), while 
an''.
    4. On page 50549, column 2, in the preamble, under the paragraph 
heading ``B. Limitation on Plant Shutdown and Other Unpredictable 
Contingent Event Benefits'', second line from the bottom of the first 
paragraph, the language ``436(b)(2), as described in paragraph F in'' 
is corrected to read ``436(b)(2), as described in paragraph II. F in''.
    5. On page 50549, column 2, in the preamble, under the paragraph 
heading ``B. Limitation on Plant Shutdown and Other Unpredictable 
Contingent Event Benefits'', first and second lines of footnote number 
4, the language ``See also Notice 2007-14, IRB 501, (see Sec.  
601.601(d)(2) of this chapter) requesting'' is corrected to read ``See 
also Notice 2007-14, 2007-7 IRB 501 (see Sec.  601.601(d)(2) of this 
chapter), requesting''.
    6. On page 50550, column 1, in the preamble, under the paragraph 
heading ``C. Limitation on Plan Amendments Increasing Liability for 
Benefits'', second line from the bottom of the first paragraph, the 
language ``described in paragraph F of this'' is corrected to read 
``described in paragraph II. F of this''.
    7. On page 50551, column 2, in the preamble, under the subparagraph 
heading ``5. Prohibited payment.'', second line of the paragraph (c), 
the language ``on a retroactive annuity starting date,'' is corrected 
to read ``under a retroactive annuity starting date,''.
    8. On page 50551, column 2, in the preamble, under the subparagraph 
heading ``5. Prohibited payment.'', lines third and fourth to last of 
the paragraph (d), the language ``from an insurer to pay benefits under 
plan.'' is corrected to read ``from an insurer to pay benefits under 
the plan.''.
    9. On page 50551, column 2, in the preamble, under the paragraph 
heading ``E. Limitation on Benefit Accruals'', second line from the 
bottom of the paragraph, the language ``436(e)(2), as described in 
paragraph F of'' is corrected to read ``436(e)(2), as described in 
paragraph II. F of''.
    10. On page 50552, column 2, in the preamble, under the paragraph 
heading ``G. Presumed Underfunding for Purposes of Benefit 
Limitations'', tenth line of the second paragraph of the column, the 
language ``percent but less than 90 percent, then'' is corrected to 
read ``percent but less than 90 percent (or, if that preceding plan 
year is the pre-effective plan year, was certified to be less than 90 
percent), then''.
    11. On page 50553, column 2, in the preamble, under the paragraph 
heading ``G. Presumed Underfunding for Purposes of Benefit 
Limitations'', eleventh line of the third paragraph of the column, the 
language ``prior certification applied, then the plan'' is corrected to 
read ``prior certification applied, the plan''.
    12. On page 50554, column 1, in the preamble, under the 
subparagraph heading ``3. Periods prior to certification--special rules 
for unpredictable contingent event benefits and plan amendments that 
increase liability.'', ninth line from the bottom of the first 
paragraph, the language ``a funding standard account carryover'' is 
corrected to read ``a funding standard carryover''.


Sec.  1.430(f)-1  [Corrected]

    13. On page 50559, column 2, Sec.  1.430(f)-1(g) Example 1.(i), 
ninth line of the paragraph, the language ``of the funding standard 
account carryover'' is corrected to read ``of the funding standard 
carryover''.
    14. On page 50559, column 2, Sec.  1.430(f)-1(g) Example 1.(i), 
thirteenth line of the paragraph, the language ``effective interest 
rate in 2008 for plan P is'' is corrected to read ``effective interest 
rate in 2008 for Plan P is''.
    15. On page 50559, column 2, Sec.  1.430(f)-1(g) Example 1.(iv), 
seventh line of the paragraph, the language ``standard account balance 
as of January 1,'' is corrected to read ``standard carryover balance as 
of January 1,''.
    16. On page 50559, column 3, Sec.  1.430(f)-1(g) Example 5.(i), 
ninth line of the paragraph, the language ``actual rate of return on 
plan Q's assets in'' is corrected to read ``actual rate of return on 
Plan Q's assets in''.
    17. On page 50560, column 1, Sec.  1.430(f)-1(g) Example 5.(iii), 
first line of the column, the language ``makes a contribution to Plan T 
of $190,000'' is corrected to read ``makes a contribution to Plan Q of 
$190,000''.


Sec.  1.436-1  [Corrected]

    18. On page 50560, column 3, Sec.  1.436-1(a)(3)(ii), eighth line 
of the paragraph, the language ``this section 436 could apply 
differently'' is corrected to read ``section 436 and this section could 
apply differently''.
    19. On page 50564, column 3, Sec.  1.436-1(d)(5)(ii)(C), second 
line of the paragraph, the language ``on a retroactive annuity starting 
date,'' is corrected to read ``under a retroactive annuity starting 
date,''.

[[Page 63529]]

    20. On page 50565, column 3, Sec.  1.436-1(f)(2)(iv), last line of 
the paragraph, the language ``amendment under 436(c)--'' is corrected 
to read ``amendment under section 436(c)--''.
    21. On page 50566, column 1, Sec.  1.436-1(f)(3)(ii)(A), lines 
third, fourth, and fifth of the paragraph, the language ``surety for 
purposes of section 412 of the Employee Retirement Income Security Act 
of 1974, as amended; or'' is corrected to read ``surety for purposes of 
section 412 of ERISA; or''.
    22. On page 50566, column 2, Sec.  1.436-1(f)(4) Example 1.(ii), 
fifth line of the paragraph, the language ``the increase in funding 
target due to this'' is corrected to read ``the increase in the funding 
target due to this''.
    23. On page 50567, column 1, Sec.  1.436-1(f)(4) Example 3.(iii), 
seventh line of the paragraph, the language ``section (f)(2)(iv)(A) 
apply, and the amount of'' is corrected to read ``paragraph 
(f)(2)(iv)(A) of this section apply, and the amount of''.
    24. On page 50570, column 1, Sec.  1.436-1(g)(7) Example 2., 
paragraphs (i) through (v) are removed and [Reserved]. is inserted in 
its place.
    25. On page 50570, column 2, Sec.  1.436-1(g)(7) Example 3.(i), 
second line of the paragraph, the language ``Example 2. On July 1, 
2011, the enrolled'' is corrected to read ``Example 1. On July 1, 2011, 
the enrolled''.
    26. On page 50571, column 3, Sec.  1.436-1(h)(1)(iii)(A), sixth 
line from the bottom of the paragraph, the language ``under paragraph 
(h)(1)(iii)(B) of this'' is corrected to read ``under paragraph 
(h)(1)(iii)(B) or (h)(2)(iii) of this''.
    27. On page 50571, column 3, Sec.  1.436-1(h)(2)(i), twelfth line 
of the paragraph, the language ``less than 90 percent, and where the'' 
is corrected to read ``less than 90 percent (or, if that prior plan 
year is the pre-effective plan year, was certified to be less than 90 
percent), and where the''.
    28. On page 50572, column 1, Sec.  1.436-1(h)(3)(i), third line 
from the bottom of the paragraph, the language ``the plan year, then 
that first day is'' is corrected to read ``the plan year, that first 
day is''.
    29. On page 50573, column 1, Sec.  1.436-1(h)(4)(iii)(C)(1), 
eleventh line from the bottom of the paragraph, the language ``applied, 
then the plan will not have'' is corrected to read ``applied, the plan 
will not have''.
    30. On page 50573, column 2, Sec.  1.436-1(h)(6), eighth line from 
the bottom of the paragraph, the language ``carryforward balance as of 
any of the'' is corrected to read ``prefunding balance as of any of 
the''.
    31. On page 50574, column 1, Sec.  1.436-1(h)(6) Example 4.(ii), 
third line from the bottom of the paragraph, the language 
``distributions in paragraph (d)(1) and the'' is corrected to read 
``distributions in paragraph (d)(1) of this section and the''.
    32. On page 50574, column 1, Sec.  1.436-1(h)(6) Example 5.(iii), 
third line from the bottom of the column, the language ``paragraph 
(h)(2)(iii) of this section apply'' is corrected to read ``paragraph 
(h)(1)(iii) of this section apply''.
    33. On page 50574, column 2, Sec.  1.436-1(h)(6) Example 5.(iv), 
seventh line of the paragraph, the language ``(h)(2)(ii) of this 
section apply. Accordingly,'' is corrected to read ``(h)(2)(iii) of 
this section apply. Accordingly,''.
    34. On page 50574, column 2, Sec.  1.436-1(h)(6) Example 6.(v), 
last line of the column, the language ``2011, would be able to elect a 
new starting'' is corrected to read ``2011, would be able to elect a 
new annuity starting''.
    35. On page 50576, column 1, Sec.  1.436-1(j)(3)(iv), third line 
from the bottom of the paragraph, the language ``percentage for the 
plan has been'' is corrected to read ``attainment percentage for the 
plan has been''.
    36. On page 50577, column 2, Sec.  1.436-1(k)(5), fifth line from 
the bottom of the column, the language ``plan year beginning before the 
first'' is corrected to read ``plan year beginning before the''.

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. E7-21964 Filed 11-8-07; 8:45 am]
BILLING CODE 4830-01-P