Small Business Actuarial Guidelines Reliance Act

Small Business Actuarial Guidelines Reliance Act - 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 5553 IH
101st CONGRESS
2d Session
 H. R. 5553
To provide that taxpayers may rely on Internal Revenue Service guidelines
in determining the funding limits for pension plans.
IN THE HOUSE OF REPRESENTATIVES
September 5, 1990
Mr. SLATTERY 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, That this Act may be cited as the
  `Small Business Actuarial Guidelines Reliance Act.'
  SEC. 2. (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: Provided,
  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 Audit Guidelines Handbook,
  then deference shall be given to the judgment of the plan's Enrolled
  Actuary with respect to the selection of the actuarial assumption.