Announcement 2004-38

SECTION 23. EGTRRA

added by section 102 of the Pension Funding Equity Act of 2004, Pub. L. 108-218.

[RESERVED]
I. Background
SECTION 24. REMEDIAL
AMENDMENT PERIOD
[RESERVED]
SECTION 25. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2000–20 is superseded.
Rev. Proc. 2004–6 is modified.
SECTION 26. EFFECTIVE DATE
[RESERVED]
SECTION 27. PAPERWORK
REDUCTION ACT
[RESERVED]
DRAFTING INFORMATION
[RESERVED]

Election of Alternative Deficit
Reduction Contribution
Announcement 2004–38
This announcement sets forth the procedures for electing an alternative deficit
reduction contribution under § 412(l)(12)
of the Internal Revenue Code (the Code) as

2004-18 I.R.B.

Section 102 of the Pension Funding Equity Act of 2004 added § 412(l)(12) to the
Code and section 302(d)(12) to the Employee Retirement Income Security Act of
1974 (ERISA). Section 412(l)(12) of the
Code permits certain employers who are
required to make additional contributions
under § 412(l) to elect a reduced amount
of those contributions (“alternative deficit
reduction contributions”) for certain plan
years. An employer is eligible to make
such an election if it is (1) a commercial
passenger airline, (2) primarily engaged in
the production or manufacture of a steel
mill product or the processing of iron ore
pellets, or (3) an organization described
in § 501(c)(5) and which established a
plan on June 30, 1955, to which § 412
now applies. Section 302(d)(12) of ERISA
permits an identical election and provides
identical requirements with respect to the
minimum funding standard of section 302.
The election can be made for any plan
year beginning after December 27, 2003,
and before December 28, 2005. An election for a plan of an eligible employer must
be made annually and cannot be made for
more than two plan years for each plan.
An election of an alternative deficit reduction contribution may only be made with
respect to a plan for which the additional

878

contributions under § 412(l) of the Code
and section 302(d) of ERISA for the plan
year beginning in 2000 did not apply (determined without regard to the special rule
for small plans under § 412(l)(6) of the
Code and section 302(d)(6) of ERISA).
Section 412(l)(12)(B) of the Code and
section 302(d)(12)(B) of ERISA contain
restrictions on the plan amendments that
may be made during a year for which an
alternative deficit reduction contribution
is elected.
Section II of this announcement sets
forth the information that must be contained in the election and the address to
which the election must be sent. If an employer elects an alternative deficit reduction contribution for any plan year, the employer must provide written notice of the
election to the plan’s participants and beneficiaries and to the Pension Benefit Guaranty Corporation within 30 days of filing
the election.
II. Election of Alternative Deficit
Reduction Contribution
A. As an officer of the employer maintaining the plan, I hereby elect an alternative deficit reduction contribution under § 412(l)(12) of the Code and section
302(d)(12) of ERISA and include the following information:

(Continued on the following page)

May 3, 2004

1.

The employer is:
(a) a commercial passenger airline,
(b) primarily engaged in the production or manufacture of a steel mill product or the processing
of iron ore pellets, or
(c) an organization described in § 501(c)(5) of the Code and which established a plan on June 30,
1955, to which § 412 now applies.

2.

The name and EIN of the employer:

3.

The name and plan number of the plan:

4.

The plan year to which the election relates:

5.

Specify the plan year beginning in 2000 for which the additional contributions under § 412(l) did not apply:

6.

If any of the information in items 2 or 3 was different from the name of the employer or the plan, etc., than
in the plan year for which the election is being made, enter the plan name, plan number, and name and EIN
of the employer for the 2000 plan year:

7.

Signature of employer

Date

The election must be signed by an officer of the employer maintaining the plan. An authorized representative
of the employer, plan administrator, or enrolled actuary may not sign this election on behalf of the employer.
B. This election must be filed at the
following address:
Internal Revenue Service
Commissioner, Tax Exempt and
Government Entities Division
Attention: SE:T:EP:RA:T
Alternative DRC Election
P.O. Box 27063
McPherson Station
Washington, D.C. 20038
III. Paperwork Reduction Act
The collection of information contained
in this announcement has been reviewed
and approved by the Office of Management and Budget in accordance with the
Paperwork Reduction Act (44 U.S.C.
3507) under control number 1545–1883.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
control number.
The collection of information in this announcement is in section II. This information is required to enable the Commissioner, Tax Exempt and Government Entities Division of the Internal Revenue Service to monitor and make valid determinations with respect to employers that elect

May 3, 2004

an alternative deficit reduction contribution for certain plans. As a result of such
elections, an employer’s deficit reduction
contribution for certain plans will be based
on amounts specified under § 412(l)(12)
of the Code. Such an election may cause
the excise tax for failure to meet the minimum funding standards not to be incurred.
The likely respondents are businesses or
other for-profit institutions, nonprofit institutions, and small businesses or organizations.
The estimated total annual reporting
and/or recordkeeping burden is 800 hours.
The estimated annual burden per respondent/recordkeeper varies from 3 to 5
hours, depending on individual circumstances, with an estimated average of 4
hours. The estimated number of respondents and/or recordkeepers is 200.
The estimated frequency of responses is
occasional.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. § 6103.

879

Deletions From Cumulative
List of Organizations
Contributions to Which
are Deductible Under Section
170 of the Code
Announcement 2004–41
The name of an organization that no
longer qualifies as an organization described in section 170(c)(2) of the Internal
Revenue Code of 1986 is listed below.
Generally, the Service will not disallow
deductions for contributions made to a
listed organization on or before the date
of announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the Service is not
precluded from disallowing a deduction
for any contributions made after an organization ceases to qualify under section
170(c)(2) if the organization has not timely
filed a suit for declaratory judgment under
section 7428 and if the contributor (1) had
knowledge of the revocation of the ruling
or determination letter, (2) was aware that
such revocation was imminent, or (3) was
in part responsible for or was aware of the
activities or omissions of the organization
that brought about this revocation.

2004-18 I.R.B.