Treasury Issues Final Hybrid Plan Rules and Proposed Regulations on Transition Issues

The Treasury Department and Internal Revenue Service have issued final regulations on hybrid plans under the Pension Protection Act of 2006 and proposed regulations on transition rules regarding hybrid plans that allow “above market” interest rates of return. The final regulations expand the rates of return that may be provided in cash balance and pension equity plans. The proposed regulations include transition relief which permits non-compliant hybrid plans to be amended to provide compliant rates of return.

ERIC members and trial members can read more here.
A summary of the new regulations by Towers Watson is available here.