Notice 2010-56 by ProQuest


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									Form 5500 (and Schedule SB) for the plan        in the 30-plan-year period beginning with         ply must give notice thereof to plan partic-
year has been filed.                            the plan year in which the net investment         ipants and beneficiaries. In addition, the
                                                loss was incurred.                                plan sponsor must inform the Pension Ben-
DRAFTING INFORMATION                                Section 431(b)(8)(B) provides a special       efit Guaranty Corporation (PBGC) that the
                                                asset valuation rule in the case of a multi-      special funding rules apply in such form
   The principal author of this notice is
                                                employer plan that meets the solvency test.       and manner as the Director of the PBGC
Carolyn Zimmerman of the Employee
                                                The special rule permits a multiemployer          may prescribe.
Plans, Tax Exempt and Government
                                                plan to change its asset valuation method             Under section 211(b) of PRA 2010,
Entities Division. Questions regarding
                                                in a manner that (1) spreads the difference       § 431(b)(8) takes effect as of the first
this notice may be sent via e-mail to
                                                between expected returns and actual re-           day of the first plan year ending af-
                                                turns for either or both of the applicable        ter August 31, 2008. However, if the
                                                plan years over a period of not more than         application of the special funding rules
                                                10 years, (2) provides that, for either or        affects the plan’s funding standard account
Special Funding Rules for                       both of the first two plan years beginning        for the first plan year beginning after
Multiemployer Plans Under                       after August 31, 2008, the value of plan as-      August 31, 2008, the special rules are
PRA 2010                                        sets at any time cannot be less than 80 per-      disregarded for purposes of applying
                                                cent or greater than 130 percent of the fair      § 432 and section 305 of the Employee
Notice 2010–56                                  market value of the assets at that time, or       Retirement Income Security Act of
                                                (3) provides for both (1) and (2).                1974, as amended (ERISA) (relating to
PURPOSE                                             Section 431(b)(8)(C) describes the sol-       multiemployer plans in endangered or
                                                vency test that a multiemployer plan must         critical status). In addition, the restriction
    This notice provides guidance on the
                                                meet in order for either or both of the spe-      on plan amendments under § 431(b)(8)(D)
availability of special funding rules for
                                                cial funding rules to apply. The solvency         is effective on June 25, 2010, the date of
multiemployer defined benefit plans under
                                                test is met only if the plan actuary certi-       the enactment of PRA 2010.
§ 431(b)(8) of the Internal Revenue Cod
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