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.


Related content

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

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal