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An Exciting Day for PRC

The Pension Rights Center had a very exciting day on Tuesday as we joined with three other groups to unveil a new initiative called Retirement USA. Together with the Economic Policy Institute, National Committee to Preserve Social Security and Medicare, and Service Employees International Union, we presented principles that would provide the basis for a new universal, secure, and adequate retirement system in addition to Social Security.

The Holman Lounge at the National Press Club was standing-room only. Attendees included not just reporters, but also representatives from retiree organizations, labor unions, think tanks, other public interest groups, the business community, and government agencies. One woman, a retired family economist, travelled all the way from Delaware for the event. There were even representatives from two foreign embassies! Clearly, we're not the only ones who think that retirement security is an important issue.

The development of a new system is an ongoing dialogue and we invite you to comment on our principles and share proposals for a new system with the initiative. We'll be discussing proposals for a new system at a conference in the fall. Visit the Retirement USA web site find out more about the launch, to read the principles, and to learn why we need to start developing a new system today.

Comments

I am a victim of these errors and the plan refuses to correct my indiviual plan.
please make sure this is given proper consideration by the President. If he is not already aware of this, a powder keg waiting to blow.

On August 14, 2008, the IRS released Revenue Procedure 2008-50, providing guidance and
revisions related to its programs for correcting retirement plan qualification errors under the
Internal Revenue Code (Code).1 These programs are collectively referred to as the Employee
Plans Compliance Resolution System (EPCRS), which applies to plans (including governmental
plans) qualified under Code §§ 401(a), 403(a), and 403(b), as well as simplified employee
pensions (SEPs), and savings incentive match plans (SIMPLE IRAs).2
The EPCRS was created to encourage plans to establish administrative practices and
procedures that ensure plan documents conform to Code requirements and the plans operate
according. The EPCRS was also created to provide plans with a means of correcting
qualification errors in a voluntary and timely manner. These corrections allow plans to come
back into compliance with the qualification rules and continue providing plan members with taxfavored
retirement benefits. The EPCRS consists of three programs:
• Self-Correction Program (SCP) – allowing plans with established compliance practices
to correct minor operational errors without notifying the IRS or paying penalties;
• Voluntary Correction Program (VCP) – allowing plans that are not being audited by
the IRS to submit plan corrections to the IRS for approval in exchange for a limited fee;
and,
• Audit Closing Agreement Program (Audit CAP) – allowing plans being audited by the
IRS to correct errors in exchange for a larger fee based on the nature and severity of the
errors.
Section 1101 of the 2006 Pension Protection Act gives the Secretary of the Treasury full
authority to establish and implement the EPCRS. It also instructs the Secretary to update the
system, improve its accessibility for small employers, and expand self-correction for insignificant
compliance errors. To meet these goals, Rev. Proc. 2008-50 modifies the earlier correction
procedures provided in Rev. Proc. 2006-27, streamlines the EPCRS, adds new correction
options, and reduces some penalty fees. These changes are effective as of January 1, 2009;
however, plans may apply the provisions beginning September 2, 2008.

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