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IRS Rules on Normal Retirement Age |
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Wednesday, 12 November 2008 |
Last year, the IRS, in response to several press articles on struggling public sector pension plans, decided governmental plans needed additional federal oversight and it would significantly increase audits of these defined benefit plans.
The National Association of Police Organizations (NAPO) and several other public pension stakeholder organizations took issue with the IRS’s plan to increase audits on public pension plans and its reasoning for doing so. NAPO is concerned that the IRS does not have the knowledge or adequate guidance necessary for properly auditing governmental plans. Additionally, the IRS has not sufficiently involved state and local government officials in the process of establishing increased enforcement in this area and may be acting outside of its jurisdiction. Lastly, the press reports on governmental plans that the IRS is citing have nothing to do with federal tax code compliance and tend to use selective examples that are usually tangled with issues relating to health care, which distort the overall picture of public pension finance. (read full article here )
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