Pension plan rules are hit for rigidity. (IRS rules)(Risk Management/Employee Benefits)

National Underwriter Property & Casualty-Risk & Benefits Management, November, 1991 by Fisher, Mary Jane

Pension Plan Rules Are Hit For Rigidity WASHINGTON--The long-awaited final non-discrimination regulations issued by the Internal Revenue Service will increase the cost and complexity of retirement plans for all employers, according to pension experts. "The rules are too rigid," said Stephen Kraus, chief counsel, pensions, of the American Council of Life Insurance, Washington.

"They didn't have to be that rigid and complex to accomplish their purpose." The purpose of the IRS final rules is to enable sponsors to demonstrate that their qualified pension and profit sharing plans do not discriminate in favor of highly compensated employees. The regulations are effective for plan years beginning after Dec. 31, 1991. The IRS has said action may be taken...

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