Elizabeth Drake's Testimony Before the IRS on Behalf of ERIC Quoted in Bloomberg BNA

"IRS Rules Said to Raise Costs for Pension Plans, Sponsors"

Bloomberg BNA


Elizabeth Drake's testimony on behalf of the ERISA Industry Committee (ERIC) at a March 7 Internal Revenue Service (IRS) hearing addressed the uncertainty that would be created by the agency changing the minimum present value requirements for pension plans. Drake said ERIC would oppose the IRS's stance that Social Security level income options should be valued under the minimum present value assumption in Section 417(e); they have not been subject to such requirements in the past and "to change this now is extremely disruptive and could create legal challenges with respect to decades of prior benefit determinations," she said.