Recent legislation will require sponsors of tax-qualified pension and profit sharing plans to adopt amendments to their plans.
The IRS has recently announced that formal amendment of plans to conform to new laws will not be required until the end of the first plan year beginning after December 31, 1998 (the "remedial amendment period"). A condition of retroactively amending a plan to comply with the new laws, however, is that the plan sponsor must operate the plan in conformity with the laws' requirements pending formal amendment. Summarized in the enclosed Pension Law Supplement are various provisions of laws which presently affect the administration of your plans so that you may take advantage of options offered and comply with all mandatory requirements pending formal plan amendments.