Stephen H. Cypen, Esq., Editor

IT IS OFFICIAL ... IRS WILL MODIFY FILING CYCLE FOR GOVERNMENTAL PLANS:

As we anticipated (see C&C Newsletter for October 30, 2008, Item 1), Internal Revenue Service will modify filing cycle for governmental plans under the Staggered Remedial Amendment Program. According to a Special Edition of the Employee Plans News dated November 5, 2008, Internal Revenue Service is implementing a one-time modification of the Staggered Remedial Amendment Program to permit sponsors of governmental plans to submit for determination letters during either Cycle C (January 31, 2009) or Cycle E (January 31, 2011). As a result of continuing discussions with the governmental plans community, IRS has previously modified a number of rules and procedures applicable to its determination letter program for governmental plans. Some of the changes include:

• Not requiring a single restated plan document under certain circumstances.
• Allowing the governmental plan sponsor to submit a summary of all amendments made prior to those reflected in the current version of the plan.
• Requiring a governmental plan sponsor to verify timely adoption of only certain plan amendments.
• Eliminating the requirement to provide a redlined version of the plan document comparing the old document to the current document.

Although the foregoing changes have made it easier for sponsors of governmental plans to file for a determination letter, nevertheless, IRS has learned of a number of obstacles beyond the direct control of the party responsible for filing the determination letter application (including the process of having funds appropriated for filing). Accordingly, IRS is implementing a one-time modification of the staggered remedial amendment program for these filers. The complete IRS Special Edition can be accessed at the following link:
http://www.cypen.com/pubs/11-08/IRS_Special_Edition_110508.pdf.