Notice 2021-48: Guidance on Single-Employer Defined Benefit Pension Plan Funding Changes Under the American Rescue Plan Act of 2021

7/30/2021

Notice 2021-48: Guidance on Single-Employer Defined Benefit Pension Plan Funding Changes under the American Rescue Plan Act of 2021 provides guidance on changes to the funding rules for single-employer defined benefit pension plans under § 430 of the Internal Revenue Code made by §§ 9705 and 9706 of the American Rescue Plan Act of 2021. Those changes also affect the application of funding-based limits on benefits under § 436.

Section 303 of the Employee Retirement Income Security Act of 1974, amended by (ERISA), provides rules parallel to the rules of § 430 , and § 206(g) of ERISA provides rules parallel to the rules of § 436.

Section 303 of ERISA was amended by §§ 9705 and 9706 of the ARP. Under § 101 of Reorganization Plan No. 4 of 1978 and § 3002(c) of ERISA, the Secretary of the Treasury has interpretive jurisdiction over the subject matter in this notice for purposes of ERISA, as well as the Code, meaning the provisions of this notice relating to §§ 430 and 436 also apply for purposes of §§ 303 and 206(g) of ERISA.

IRB: 2021-33, Aug. 16, 2021.