Guidance on Frozen Plans, DOMA Due Out ‘Imminently,’ Treasury Official Says

The retirement plan community can expect guidance imminently on issues related to frozen defined benefit plans, a Treasury Department official said during a webcast.

Over time, defined benefit plans that were frozen or closed to participants became predominantly populated with highly compensated employees, because as employees age their salaries tend to increase, George H. Bostick, benefits tax counsel in the Office of Tax Policy at Treasury, said Dec. 11 during a webcast hosted by the American Law Institute Continuing Legal Education.

“What we’re really talking about here is plans that were closed to new entrants years back when people shifted ...