Valuation of Plan Distributions

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[EE-12-95]

RIN 1545-AT27

Valuation of Plan Distributions

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary

regulations and notice of public hearing.

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SUMMARY: In the Rules and Regulations section of this issue of the

Federal Register, the IRS is issuing temporary regulations that provide

guidance to employers in determining the present value of an employee's

benefit in a qualified defined benefit pension plan, for purposes of

determining the amount of a distribution made in any form other than a

nondecreasing annuity payable for a period not less than the life of

the participant or, in the case of a qualified preretirement survivor

annuity, the life of the surviving spouse. The text of those temporary

regulations also serves as the text of these proposed regulations. This

document also provides notice of a public hearing on these proposed

regulations.

DATES: Written comments must be received by July 5, 1995. Outlines of

topics to be discussed at the public hearing scheduled for Tuesday,

July 25, 1995, at 10 a.m. must be received by July 7, 1995.

ADDRESSES: Send submissions to: CC:DOM:CORP:T:R (EE-12-95), room 5228,

Internal Revenue Service, POB 7604, Ben Franklin Station, Washington,

DC 20044. In the alternative, submissions may be hand delivered between

the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:T:R (EE-12-95),

Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW.,

Washington, DC. The public hearing will be held in the Auditorium,

Internal Revenue Building, 1111 Constitution Avenue NW., Washington,

DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Linda S.

F. Marshall, (202) 622-4606; concerning submissions and the hearing,

Michael Slaughter, (202) 622-7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

Temporary regulations in the Rules and Regulations section of this

issue of the Federal Register amend the Income Tax Regulations (26 CFR

part 1) relating to section 417. The temporary regulations provide

guidance to employers in determining the present value of an employee's

benefit in a qualified defined benefit pension plan.

The text of those temporary regulations also serves as the text of

these proposed regulations. The preamble to the temporary regulations

explains the temporary regulations.

Special Analyses

It has been determined that this notice of proposed rulemaking is

not a significant regulatory action as defined in EO 12866. Therefore,

a regulatory assessment is not required. It also has been determined

that section 553(b) of the Administrative Procedure Act (5 U.S.C.

chapter 5) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do

not apply to these regulations, and, therefore, a Regulatory

Flexibility Analysis is not required. Pursuant to section 7805(f) of

the Internal Revenue Code, this notice of proposed rulemaking will be

submitted to the Chief Counsel for Advocacy of the Small Business

Administration for comment on its impact on small business.

Comments and Public Hearing

Before these proposed regulations are adopted as final regulations,

consideration will be given to any written comments (a signed original

and eight (8) copies) that are submitted timely to the IRS. All

comments will be available for public inspection and copying.

A public hearing has been scheduled for Tuesday, July 25, 1995, at

10 a.m. in the Auditorium, Internal Revenue Building, 1111 Constitution

Avenue NW., Washington, DC. Because of access restrictions, visitors

will not be admitted beyond the building lobby more than 15 minutes

before the hearing starts.

The rules of 26 CFR 601.601(a)(3) apply to the hearing.

Persons that wish to present oral comments at the hearing must

submit written comments by July 5, 1995 and submit an outline of the

topics to be discussed and the time to be devoted to each topic (signed

original and eight (8) copies) by July 7, 1995.

A period of 10 minutes will be allotted to each person for making

comments.

An agenda showing the scheduling of the speakers will be prepared

after the deadline for receiving outlines has passed. Copies of the

agenda will be available free of charge at the hearing.

Drafting Information

The principal author of the regulations is Linda S. F. Marshall,

Office of the Associate Chief Counsel (Employee Benefits and Exempt

Organizations). However, other personnel from the IRS and Treasury

Department participated in their development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

Paragraph 1. The authority citation for part 1 is amended by adding

an entry in numerical order to read as follows:

[[Page 17287]] Authority: 26 U.S.C. 7805 * * *

Section 1.417(e)-1 also issued under 26 U.S.C.

417(e)(3)(A)(ii)(II).

Sec. 1.417 [Amended]

Par. 2. Paragraph (d) of Sec. 1.417(e)-1 is revised to read as

follows:

[The text of proposed paragraph (d) is the same as the text of

Sec. 1.417(e)-1T(d) published elsewhere in this issue of the Federal

Register].

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 95-8230 Filed 4-4-95; 8:45 am]

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