IRS Finalizes Relative Value Disclosure Regulations

On March 24, 2006, the IRS issued final regulations requiring pension plans to disclose the relative value of different forms of pension benefits. As we reported in our July 2004 Management Alert (a copy of which can be found at www.seyfarth.com/MA072604), the relative value regulations were originally issued in December 2003, and were generally applicable to retirement benefits beginning October 1, 2004. However, the IRS subsequently delayed the effective date on February 1, 2006 (with some exceptions described below), in part in response to criticism of the complexity of the rules and in part to give plan sponsors a chance to amend their plans to eliminate redundant benefit forms.