Updated IRS PBGC and DOL Provide Additional Hurricane and Wildfire Relief

Kilpatrick Townsend


September 20, 2017 Updated: IRS, PBGC and DOL Provide Additional Hurricane and Wildfire Relief Updated November 21, 2017 By: Sterling Perkinson and Harrison Taylor The IRS issued an announcement paralleling the relief granted to Hurricane Harvey victims to those in Florida affected by Hurricane Irma. Announcement 2017-13 (the “Announcement”) relaxes hardship distribution standards for employees who live or work in a Florida county designated by FEMA to receive funds on account of Hurricane Irma, or who have family, such as parents, grandparents, children or grandchildren or dependents with a principal residence in an affected county. The full list of affected Florida counties can be found here. See our prior blog post on Hurricane Harvey - found here - for a more complete description of the relief offered by the Announcement. In addition, Notice 2017-49 (the “Notice”) extends certain deadlines for single-employer and multiemployer defined benefit plans that would occur after August 23^rd for Hurricane Harvey or September 4^th for Hurricane Irma until January 31, 2018. The extended deadlines apply to “Affected Plans,” which include each of the following if located in either a Texas or Florida county designated by FEMA to receive funds for the damage caused by either Hurricane Harvey or Hurricane Irma: The principal place of business of the employer maintaining the plan or of employers employing more than 50% of the plan’s active participants; The relevant office of the plan administrator; The relevant office of the primary record keeper; or The office of the enrolled actuary or other advisor retained to make funding determinations or certifications. The extensions apply to the following deadlines: Single-employer Defined Benefit Plans Making a plan contribution for a plan year; Making an election relating to the plan’s prefunding balance or funding standard carryover balance; Obtaining an ERISA certification of the adjusted funded target attainment percentage; and Furnishing a funding-based limitation notice; Multiemployer Defined Benefit Plans Making certifications by a plan actuary; and For certain endangered or critical status plans, adopting or updating a funding improvement or a rehabilitation plan. The IRS has also extended Form 5500 filing deadlines for affected plans (see: Hurricane Irma relief and Hurricane Harvey relief). PBGC has also extended PBGC-related deadlines for affected plans until January 31, 2018. See https://www.pbgc.gov/prac/other-guidance/dr/updates. The Department of Labor has also provided guidance relating to plans that are affected by Hurricane Harvey and Irma. See: https://www.dol.gov/newsroom/releases/ebsa/ebsa20170915. Update: The IRS extended hardship distribution and loan relief to victims of Hurricane Maria and the California wildfires by Announcement 2017-15. This relief applies to hardship distributions made no later than March 15, 2018. The lists of FEMA-designated disaster areas for Hurricane Maria and the California wildfires are available at: https://www.fema.gov/disasters/. ×

September 20, 2017 Updated: IRS, PBGC and DOL Provide Additional Hurricane and Wildfire Relief

Updated November 21, 2017

By: Sterling Perkinson and Harrison Taylor

The IRS issued an announcement paralleling the relief granted to Hurricane Harvey victims to those in Florida affected by Hurricane Irma. Announcement 2017-13 (the “Announcement”) relaxes hardship distribution standards for employees who live or work in a Florida county designated by FEMA to receive funds on account of Hurricane Irma, or who have family, such as parents, grandparents, children or grandchildren or dependents with a principal residence in an affected county. The full list of affected Florida counties can be found here. See our prior blog post on Hurricane Harvey - found here - for a more complete description of the relief offered by the Announcement.

In addition, Notice 2017-49 (the “Notice”) extends certain deadlines for single-employer and multiemployer defined benefit plans that would occur after August 23^rd for Hurricane Harvey or September 4^th for Hurricane Irma until January 31, 2018. The extended deadlines apply to “Affected Plans,” which include each of the following if located in either a Texas or Florida county designated by FEMA to receive funds for the damage caused by either Hurricane Harvey or Hurricane Irma:

The principal place of business of the employer maintaining the plan or of employers employing more than 50% of the plan’s active participants;

The relevant office of the plan administrator;

The relevant office of the primary record keeper; or

The office of the enrolled actuary or other advisor retained to make funding determinations or certifications.

The extensions apply to the following deadlines:

Single-employer Defined Benefit Plans
- Making a plan contribution for a plan year;
- Making an election relating to the plan’s prefunding balance or funding standard carryover balance;
- Obtaining an ERISA certification of the adjusted funded target attainment percentage; and
- Furnishing a funding-based limitation notice;

Multiemployer Defined Benefit Plans
- Making certifications by a plan actuary; and
- For certain endangered or critical status plans, adopting or updating a funding improvement or a rehabilitation plan.

The IRS has also extended Form 5500 filing deadlines for affected plans (see: Hurricane Irma relief and Hurricane Harvey relief).

PBGC has also extended PBGC-related deadlines for affected plans until January 31, 2018. See https://www.pbgc.gov/prac/other-guidance/dr/updates.

The Department of Labor has also provided guidance relating to plans that are affected by Hurricane Harvey and Irma. See: https://www.dol.gov/newsroom/releases/ebsa/ebsa20170915.

Update: The IRS extended hardship distribution and loan relief to victims of Hurricane Maria and the California wildfires by Announcement 2017-15. This relief applies to hardship distributions made no later than March 15, 2018. The lists of FEMA-designated disaster areas for Hurricane Maria and the California wildfires are available at: https://www.fema.gov/disasters/.