Guidelines Regarding Determination Letter Requests by Pension Equity Plans

The IRS issued guidelines for determination letter applications for pension equity plans. A pension equity plan (?Ç£PEP?Ç¥) is a type of hybrid pension plan under which the benefit is expressed as a lump-sum amount rather than as an annuity payable at normal retirement age. The ?Ç£PEP Determinations Worksheet?Ç¥ and ?Ç£Explanation of PEP Plan Issues,?Ç¥ which are for use by IRS employees in processing determination letter requests, explain issues unique to PEPs that affect plan documents. An IRS Field Directive to IRS employees contains a number of sample provisions that would satisfy the requirement for the plan document to include language that ensures a participant?ÇÖs accrued benefit will not be reduced on account of any increase in age or service. Links to all three documents can be found on the updated IRS webpage.