IRS Releases 2012 Cumulative List for Cycle C Filers
On Friday, Dec. 7, the IRS released the 2012 Cumulative List of Changes in Plan Qualification Requirements in Notice 2012-76. The 2012 Cumulative List will be used by governmental plans (as defined in Internal Revenue Code Section 414(d)) that choose to file in Cycle C, as is allowed pursuant to the guidance the IRS recently released in Revenue Procedure 2012-50 (see IRS Allows Governmental Plan Sponsors to Elect Cycle E). Sponsors of pre-approved defined benefit plans such as volume submitter plans will also use the 2012 Cumulative List for the second submission under the remedial amendment cycle set forth in Revenue Procedure 2007-44. (For non-governmental plans, a plan is in the Cycle C submission period if it is a single employer plan where the last digits of the plan sponsor's employer identification number is 3 or 8.).
The 2012 Cumulative List contains those items the IRS has specifically identified for review in determining whether a plan filing in Cycle C has been properly updated. The IRS will begin accepting determination letter applications for Cycle C plans on February 1, 2013. The submission period for Cycle C plans will end January 31, 2014. Because this 2012 Cumulative List covers both governmental and non-governmental plans, many requirements will not be applicable to governmental plans. Therefore, a governmental plan that elects to file in Cycle C must first determine which provisions are applicable. Note: All governmental plans, including Cycle E filers, should review the cumulative list to evaluate their current compliance position. Also note that the IRS released an early draft Form 5300 that could be effective for Cycle C. The draft Form was issued for informational purposes only and may not be used for filing until it is finalized and officially released. However, the format of the draft Form 5300 has been significantly revised, as has the information required to be reported. Therefore, Cycle C filers may wish to familiarize themselves with the revised draft Form.
In addition to changes in laws applicable to governmental plans (such as: the Pension Protection Act of 2006 (PPA), the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act), and the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA)), the 2012 Cumulative List reflects changes to the normal retirement age regulations and group trust requirements.
If you have any questions about the 2012 Cummulative List, please contact Mary Beth Braitman, Robert Gauss, Lisa Erb Harrison, Tiffany Sharpley or any member of Ice Miller's Employee Benefits Group.
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.