IRS Issues Section 436 Sample Amendment, Extends Anti-Cutback Relief

IRS issues Notice 2011-96 containing a sample plan amendment that defined benefit plan sponsors can adopt to comply with limitations on the accrual and payment of benefits when single-employer defined benefit plans are underfunded. In the notice, IRS also extends the deadline to amend plans to satisfy tax code Section 436 and extends the period during which those amendments are eligible for relief from the anti-cutback provisions of tax code Section 411(d)(6). Final Treasury Department and IRS regulations under Sections 430(d), (f), (g), (h)(2), and (i) and 436 were released in 2009. Section 436 generally is effective for plan years that began on or after Jan. 1, 2008.