Hold Your Questions, Please! Announced July 2015 – Technical assistance and 800# gone! – No money in budget for staffing – Key legal personnel have been transferred

Not for Slide Deck 2

CHANGES TO THE DETERMINATION LETTER PROGRAM

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IRS Announcement Effective January 1, 2017, the IRS will only issue determination letters for individually designed plans upon initial plan qualification and upon plan termination – Can still submit cycle E plans (EINs ending in “0” or “5”) and cycle A plans (EINs ending in "1" or "6“) Cycle E = 2/1/15 to 1/31/16 Cycle A = 2/1/16 to 1/31/17

IRS Announcement Effective January 1, 2017 the staggered 5-year remedial amendment cycle is eliminated No changes to DL program for pre-approved plan program – Form 5307 submissions still permitted for volume submitter plans with modifications that do not require significant review – What if changes are too significant or it’s a prototype plan with modifications?

No Changes to Pre-approved Plan Submissions (for now) 7

IRS Announcement Effective July 21, 2015, the IRS will not accept off-cycle determination letter applications IRS may provide exceptions in the future 8

9 Off-cycle submissions have always been at the back of a long bus

Questions Posed by IRS What types of “limited circumstances” should be eligible to submit? Should changes be made to the general remedial amendment period? What impact do these changes have on interim amendment requirements? What other programs should be modified? 10

INTERNAL REVENUE SERVICE 11

PRE-APPROVED PLAN UPDATES (DB plans, 403(b) plans and ESOPs)

Expected Timeline for DB PPA Restatements Submission 10/30/2015 IRS Review 10/30/15 – 10/31/17? Restatements 11/1/17 – 1/31/19? NEW – IRS Rev. Proc

Rev. Proc Prohibits certain cash balance plan provisions – Any statutory hybrid benefit formula that is not a cash balance formula, such as a pension equity plan – Provisions that allow for hypothetical interest crediting based on rates of return that are subject to participant choice, based on actual return of assets, or based on a regulated investment company – A conversion from a traditional defined benefit plan unless the benefit is determined using the A + B benefit method – Plans that use an accrual method other than the 133 1/3% method

Form 8905 IRS encouraged plan sponsors to sign Form 8905 – Form 8905 is certification of intention to adopt a pre-approved plan – Must sign by applicable 5-year cycle deadline

Expected Timeline for 403(b) Restatements Submission 4/30/15 IRS Review 5/1/15 – 4/30/17? Restatements 5/1/17 – 4/30/19?

Pre-approved 403(b) Plans No individual determination letter program – Adopters of VS plans with “substantially similar” provisions will have reliance – Pre-approved plans will have to include the kitchen sink -- use sink filled with old 17

Expected Timeline for Pre-approved ESOPs Submission 1/31/2018 IRS Review 1/31/18 – 1/31/20? Restatements 2/1/20 – 1/31/22? NEW – IRS Rev. Proc

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