SECTION 2. BACKGROUND

.01 Sections 412 and 430 set forth the minimum funding standards that apply generally with respect to single-employer defined benefit pension plans. ¹⁷² Under § 412(d)(1), a change of funding method may take effect for a plan year only if the change is approved by the Internal Revenue Service (IRS).

.02 A funding method is used for a plan year if it is used to determine the minimum required contribution for that year. Section 1.430(d)–1(f)(1)(iii) provides the procedure for establishing the funding method for a plan. In the case of a plan for which an actuarial report under § 6059 (Schedule SB of Form 5500, “Annual Return/Report of Employee Benefit Plan”) is required to be filed, the funding method is established by the filing of the Schedule SB, if it is filed no later than the due date (with extensions) for that filing. In the case of a plan for which Schedule SB is not required to be filed, the funding method is established by the delivery of the completed Schedule SB to the employer, if it is delivered no later than what would have been the due date (with extensions) for filing the Schedule SB, were such a filing required.

.03 Section 1.430(d)–1(f)(1)(iv) provides that the funding method of a plan includes not only the overall funding method used by the plan but also each specific method of computation used in applying the overall method. However, the choice of which actuarial assumptions are used is not a part of the funding method. See Section 3.02 of Rev. Proc. 2017–57, 2017–44 I.R.B. xx, for examples of changes in funding method and changes in actuarial assumptions.

.04 Regulations under § 430 provide for a number of changes in funding method that are treated as approved by the IRS and may be implemented without any

172Sections 302 and 303 of ERISA contain funding rules which apply generally to single-employer defined benefit plans and are parallel to the rules of §§ 412 and 430 of the Code.

October 30, 2017 466 Bulletin No. 2017–44

Section 8 of this revenue procedure specifies a time after which the automatic approvals set forth in those two announcements may no longer be used.