To provide that taxpayers may rely on Internal Revenue Service guidelines in determining the funding limits for pension plans.

Provides that actuarial assumptions used in determining funding limits for pension plans shall be treated as reasonable if they are within the guidelines set forth in the Actuarial Guidelines Handbook (an Internal Revenue Service manual).

 
HR 5817 IH
101st CONGRESS
2d Session
 H. R. 5817
To provide that taxpayers may rely on Internal Revenue Service guidelines
in determining the funding limits for pension plans.
IN THE HOUSE OF REPRESENTATIVES
October 11, 1990
Mr. MCEWEN introduced the following bill; which was referred jointly to the
Committees on Ways and Means and Education and Labor
A BILL
To provide that taxpayers may rely on Internal Revenue Service guidelines
in determining the funding limits for pension plans.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. RELIANCE ON IRS GUIDELINES IN DETERMINING PENSION PLAN FUNDING
LIMITS.
  (a) GUIDELINES FOR ACTUARIAL ASSUMPTIONS- For purposes of section 412(c)(3)
  of the Internal Revenue Code of 1986 and section 302(c)(3) of the Employee
  Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(3)), actuarial
  assumptions used by a plan shall be treated as reasonable if such assumptions
  are within the guidelines set forth in the Actuarial Guidelines Handbook
  (Internal Revenue Manual 7(10)5(10), as in effect on December 12, 1984).
  (b) PERIOD PROVISION IN EFFECT- The provisions of subsection (a) shall
  apply for all plan years ending after December 12, 1984, and beginning
  before such time as modifications to the guidelines become final, except
  that such modifications shall be applied prospectively.
  (c) RELIANCE ON PROFESSIONAL GUIDANCE- If a plan lacks sufficient experience
  to fall within the purview of the Actuarial Guidelines Handbook, deference
  shall be given to the judgment of the plan's enrolled actuary with respect
  to the selection of the actuarial assumption.