SECTION 4. APPLICATION FOR

AUTOMATIC EXTENSION

.01 Information to be provided .—An applicant for an automatic extension must furnish the following information:

(1) A list of the charge bases for which an extension of the amortization periods is requested.

(2) The length of the extension of the amortization period being requested for each of the charge bases listed in (1) above (up to a maximum of five years). No extension will be granted with respect to an amortization period for net investment losses described under § 431(b)(8)(A)(i).

(3) Whether a prior application for an automatic or alternative amortization extension under § 431(d), or amortization extension under § 412(e) as in effect before the effective date of PPA, was or was not approved with respect to any of the charge bases for which an extension is requested, including, if approved, the length of the extension, and, if denied, the reason for the denial and an explanation of why the reason for the denial no longer applies.

(4) A certification by the plan’s actuary that, based on reasonable assumptions:

1. Absent the extension for which the plan is applying, the plan would have an accumulated funding deficiency in the current plan year or any of the nine succeeding plan years,

2. The plan sponsor has adopted a plan to improve the plan’s funding status,

3. The plan is projected to have sufficient assets to timely pay expected benefits and anticipated expenditures over the amortization period as extended, and

4. The notice required under § 431(d)(3)(A) has been provided, in accordance with § 3.05 of this revenue procedure.

.02 Ruling .—Upon receipt of the application with the necessary information, and verification that the criteria stated above have been met, the Secretary shall issue a statement to the applicant providing approval for the requested extension.

.03 Applicable Period .—The procedures of this § 4 shall not apply with respect to any application submitted after

December 27, 2010 929 2010–52 I.R.B.

For each pension plan for which an extension is requested, the following information must be supplied.

1. The date the plan was adopted. 2. The effective date of the plan. 3. The classes of employees covered. 4. The number of active participants and the number of total participants.

5. A copy of the current plan document and the most recent summary plan description.

6. A copy of the most recent determination letter issued to the plan.

7. A brief description of all plan amendments adopted during the first plan year for which the extension would apply and the previous four years which affect plan costs, including the approximate effect of each amendment on such costs.

8. The most recent actuarial report plus any available actuarial reports for the preceding two plan years. Also, if not shown in the most recent actuarial report, the present value of accrued benefits, present value of vested benefits, and fair market value of assets (excluding contributions not yet paid).

9. A description of how the plan is funded ( i.e., trust fund, individual insurance policies, etc.).

10. A list of the contributions actually paid to the plan in each month, from the twenty-fourth month prior to the beginning of the first plan year for which the extension would apply through the date of the application (including the plan year to which each of the contributions was applied), with the employee contributions and the employer contributions listed separately.

11. The approximate contribution required to meet the minimum funding standard for the first plan year for which the extension would apply. This amount must be determined by the plan’s enrolled actuary.

12. A copy of the most recently completed Annual Return/Report of Employee Benefit Plan (Form 5500 series, as applicable) and a copy of the corresponding Actuarial Information schedule (Schedule MB).

13. A copy of each ruling letter for the plan that waived the plan’s minimum funding standard during the last 15 plan years, a statement of the amount waived for each plan year, and a statement of the outstanding balance of the amortization base for each waived funding deficiency. The out

to the plan during the preceding plan year, or (3) for the current plan year, are required to make five percent or more of the total required contributions under the collective bargaining agreements relating to the plan for which the extension is requested. Each of the principal employers must submit the latest available annual financial report of the employer and each of the other entities included within the controlled group of which the employer is a member. This submission must include at least the balance sheet, profit and loss statement, cash flow statement, and notes to the financial statement. Recent interim financial reports for each of the controlled group members, if available, must also be submitted along with an interim financial report covering the corresponding period for the previous year. If the employer submits financial reports to the Securities and Exchange Commission, these reports must be submitted for the same period as the annual financial report. Preferably, the financial report should include certified financial statements. If certified financial statements have not been prepared, an uncertified report is acceptable. If neither certified nor uncertified reports are available, a copy of the company’s latest available federal income tax return, including all of the supporting schedules, must be submitted. The required financial information of the principal employers should be submitted directly from each employer to the Service at the following address, at the same time that the application is made:

Employee Plans Internal Revenue Service Commissioner, TE/GE Attention: SE:T:EP:RA P.O. Box 27063 McPherson Station Washington, D.C. 20038

(3) Information concerning the exten- sion of the amortization period .

Information concerning the extension of the amortization period must include the following.

1. A list of the charge bases for which the extension is requested, the amount of each such base, and the number of years remaining in the amortization period for the charge base. A favorable ruling will not be granted on an application with respect

to which the total amount subject to the requested extension is not yet established.

2. The reasons why an extension of the amortization period is needed.

3. The length of the extension of the amortization period desired (up to a maximum of 10 years less any automatic or previously approved alternative extension). No extension will be granted with respect to an amortization period for net investment losses described under § 431(b)(8)(A)(i).

4. Whether a prior application for an automatic or alternative amortization extension under § 431(d), or amortization extension under § 412(e) as in effect before the effective date of PPA, was or was not approved with respect to any of the charge bases for which an extension is requested, including, if approved, the length of the extension, and, if denied, the reason for the denial and an explanation of why the reason for the denial no longer applies.

5. Information concerning the actions taken by the applicant, before the application for an extension has been made, to reduce the plan’s unfunded liability. Such actions would include the reduction of future plan benefit accruals and increases in employer contribution rates. Also describe any benefit reductions, contribution rate increases, or other actions that are intended to be taken in the future.

6. Projections of (i) funding standard account credit balance/accumulated funding deficiencies, (ii) actuarial value of assets and market value of assets, (iii) current liabilities, and (iv) funding ratios (determined in accordance with § 432(i)) for the length of the extension of the amortization period requested and for the period 10 years afterwards. For example, if the applicant requests an extension of 10 years (including a five-year automatic extension), the projections must be for a 20-year period. These projections must be prepared by an enrolled actuary.

7. The first plan year for which the extension would apply, i.e., the first plan year for which the extension of the amortization period will be reflected in the determination of the minimum funding standard for the plan ( e.g., 1/1/2011–12/31/2011).

The Service may request additional information as needed.

(4) Facts concerning the pension plan .

2010–52 I.R.B. 930 December 27, 2010