IRS Ends Moratorium on Determination Letters for Cash Balance Plans and Provides Guidance on Fixing “Whipsaw” Issues

On December 21, 2006, the IRS issued Notice 2007-6 (the Notice), which provides interim guidance to plan sponsors of so-called “hybrid” plans (e.g., cash balance and pension equity plans). The interim guidance addresses the processing of determination letter applications for hybrid plans, the correction of any “whipsaw” issues, and the applicability of certain provisions under the recently enacted Pension Protection Act of 2006 (PPA).