October 17, 2016

Multiemployer Pension Plans Under IRS Scrutiny: What Are the Red-Flag Issues?

The Tax Exempt and Governmental Entities (TEGE) division of the Internal Revenue Service (IRS) has once again identified multiemployer plans as an examination priority in its Work Plan for Fiscal Year 2017, which began October 1, 2016. It states that service crediting will be an area of special interest in examinations this Fiscal Year.

The 2017 Work Plan also provides information about the most common issues identified in the last year’s (FY 2016) examinations. Of the 90 cases closed so far, the most common issues were failure to:

  • Calculate retirement benefits (service crediting and allocation/accruals) properly;
  • Make required minimum distributions; and
  • Adjust benefits delayed beyond normal retirement age.

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Serena Simons

Serena Simons

SVP, National Retirement Compliance Practice Leader