IRS regs seen hurting benefit plans. (Internal Revenue Service)

National Underwriter Property & Casualty-Risk & Benefits Management, November, 1990 by Brostoff, Steven

IRS Regs Seen Hurting Benefit Plans WASHINGTON - The Internal Revenue Service is proposing new defined benefit pension plan regulations that would cause further damage to an already declining market, according the Association for Advanced Life Underwriting. The proposed regulations "demonstrate an inherent bias against small employers and establish tests that will tip the balance of the voluntary pension system strongly against the establishment and maintenance of defined benefit plans by small employers," Stuart Lewis, an attorney representing the Washington-based association, said at an IRS hearing on the proposal.

The IRS proposal creates new nondiscrimination tests intended to assure that pension plan benefits are distributed fairly. While that goal is...

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