Proposed Rules Would Provide Important
Governmental Plan Guidance

          The IRS and Department of Treasury (Treasury) have published two advance notices of proposed rulemaking concerning the definition of the term "governmental plan" under Section 414(d) of the Internal Revenue Code. The first notice addresses the issue of determining whether a retirement plan is a governmental plan. The second notice sets forth rules applicable to the definition of an Indian Tribal Government (ITG) governmental plan. Each notice includes a draft of possible proposed regulations. The announcement of the publication of the advance notices and links to the notices themselves can be found here.

          The IRS and Treasury are seeking comments on possible approaches and other issues that should be addressed with regard to the proposed rules so that any guidance they develop reflects the needs and concerns of governmental employers. Written comments may be sent to: CC:PA:LPD:PR, room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington DC, 20044.  Alternatively, comments may be submitted electronically via the Federal e-Rulemaking Portal at www.regulations.gov.  All submissions must include the applicable reference number for either the general governmental plan notice (REG-157714-06) or the ITG notice (REG-133223-08).  Written or electronic comments must be received by February 6, 2012.

          Ice Miller will issue a detailed summary of the key provisions of the notices shortly to our clients. In the meantime, if you have any questions or need additional information regarding how the proposed rulemaking may impact your governmental plan, please contact Mary Beth Braitman, Terry A.M. Mumford, Katrina Clingerman, Lisa Harrison, or your Ice Miller Employee Benefits attorney.