Additional Rules Regarding Hybrid Retirement Plans

The ERISA Industry Committee A Series of Six Comments on The Proposed and Final Regulations on Hybrid Retirement Plans The ERISA Industry Committee (“ERIC”) is pleased to submit six comments on the proposed and final regulations issued by the Department of Treasury (“Treasury”) and the Internal Revenue Service (“IRS” or “Service”) under Title VII and section 1107 of the Pension Protection Act of 2006 (“PPA”), as amended by the Worker, Retiree, and Employer Recovery Act of 2008 (“WRERA”). The regulations apply for purposes of sections 411(a)(13), 411(b)(1) (B), and 411(b)(5) of the Internal Revenue Code (the “Code”), as well as the applicable parallel provisions of Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”) and the Age Discrimination in Employment Act of 1967 (“ADEA”). The regulations were published in the Federal Register on October 19, 2010. See 75 Fed. Reg. 64,123 (final regulations); 75 Fed Reg. 64,197 (proposed regulations). Corrections to the regulations were published in the Federal Register on December 28, 2010. See 75 Fed. Reg. 81,456 (final regulations); 75 Fed. Reg. 81,543 (proposed regulations). ERIC is submitting six comments on the regulations addressing: (1) Market Rate of Return; (2) PPA Anti-Whipsaw Rules; (3) Age Discrimination Testing; (4) PPA Vesting, Plan Termination, and Conversion Rules; (5) Participant-Directed Cash Balance Plans; and (6) Pension Equity Plans. Because of the importance of these regulations to many ERIC members, ERIC requests that the Treasury and the IRS hold a public hearing on the regulations. ERIC also requests that it be permitted to testify at the hearing. Mark J. Ugoretz President & CEO The ERISA Industry Committee