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Notice 2020-60: Community newspaper pension plans, alternative minimum funding standards

Notice 2020-60: Community newspaper pension plans

The IRS today released an advance version of Notice 2020-60 as guidance regarding the election of alternative minimum funding standards for certain defined benefit pension plans of community newspapers.


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Read Notice 2020-60 [PDF 82 KB]

Section 430(m), providing an election for alternative minimum funding standards for certain defined benefit pension plans, was added to the Code by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) under the Further Consolidated Appropriations Act, 2020, (Pub. L. No. 116-94).

Specifically, section 430(m) permits the plan sponsor of a community newspaper plan under which no participant has had an increase in accrued benefit after December 31, 2017, to elect to have alternative minimum funding standards apply to the plan instead of the minimum funding requirements that otherwise would apply under section 430.

The guidance contained in Notice 2020-60:

  • Specifies the applicable U.S. Treasury obligation yield curve that is used to determine the present value of certain increases in benefits
  • Sets forth rules and procedures relating to the election under section 430(m), including a limited period for plan sponsors to make the election for prior years, and contains a model election that may be used
  • Provides relief related to the impact of the election on the application of section 436
  • Provides additional flexibility under section 430 to facilitate retroactive elections
  • Addresses the reporting requirements that reflect the effect of the election

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