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Treasury and IRS Provide Relief for Cash Balance Plan Interest Crediting Rates

2009-11-12

On November 10, 2009, the Treasury and IRS issued Announcement 2009-82, which provides relief to cash balance plans regarding the requirement under the Pension Protection Act of 2006 that interest crediting rates not exceed a market rate of return.

The Announcement also indicates that the Treasury and IRS expect to issue final and proposed regulations relating to statutory hybrid plans (i.e., cash balance and pension equity plans) in the near future. We anticipate that the guidance on interest crediting rates will be in the form of proposed regulations.

The bulletin linked to below discusses the relief provided in the Announcement.

Treasury and IRS Provide Relief for Cash Balance Plan Interest Crediting Rates