ERIC Responds to Guidance on Frozen Defined Benefit Pension Plans

For Immediate Release

Washington, DC – The ERISA Industry Committee (ERIC) is generally pleased with the newly released proposed Treasury regulations that would provide nondiscrimination relief for closed pension plans.

ERIC previously submitted a letter to the Department of Treasury and the Internal Revenue Service urging them to provide permanent relief and numerous additional options to satisfy the nondiscrimination testing requirements under the Internal Revenue Code for closed defined benefit plans.

“It was imperative that the new rules recognize that the current law nondiscrimination testing regime encourages employers that have closed their defined benefit plans to new participants to stop accruing benefits for those grandfathered in the closed plan. Upon initial review, the proposed rules take important steps to relieve closed plan sponsors from some of the nondiscrimination requirements, while still protecting the employees’ ability to save for retirement,” said Annette Guarisco Fildes, president and CEO, ERIC. “We are appreciative that the proposed rules address so many of the ERIC’s recommendations, and look forward to working with the Treasury Department and Internal Revenue Service as the regulations are finalized.”

The proposed rules would:

  • Provide plans with permanent relief.
  • Afford closed defined benefit plans additional options for satisfying the nondiscrimination requirements, including easing the rules under which a combined defined benefit and define contribution plan can satisfy the nondiscrimination rules.
  • Provide relief with respect to benefits, rights and features to a grandfathered group under a closed defined benefit plan.

To read the proposed regulations in full, click here.


All media inquiries to The ERISA Industry Committee should be directed to:

Kelly Broadway, 202.627.1918,

About the ERISA Industry Committee
ERIC is the only national association that advocates exclusively for large employer plan sponsors on health, retirement, compensation, and paid leave public policies at the federal, state, and local levels. With member companies that are leaders in every sector of the economy, ERIC promotes uniformity and flexibility for nationwide benefit plans.