44648 Federal Register / Vol. 73, No. 148 / Thursday, July 31, 2008 / Rules and Regulations 

(B) The plan year in which the plan 

fails to satisfy the requirements of 

paragraph (d)(1) of this section 

(regarding use of substitute mortality 

tables by controlled group members); 

(C) The second plan year following 

the plan year in which there is a 

significant change in individuals 

covered by the plan as described in 

paragraph (d)(4)(ii) of this section; 

(D) The plan year following the plan 

year in which a substitute mortality 

table used for a plan population is no 

longer accurately predictive of future 

mortality of that population, as 

determined by the Commissioner or as 

certified by the plan’s actuary to the 

satisfaction of the Commissioner; or 

(E) The date specified in guidance 

published in the Internal Revenue 

Bulletin (see § 601.601(d)(2)(ii)(b) of this 

chapter) pursuant to a replacement of 

mortality tables specified under section 

430(h)(3)(A) and § 1.430(h)(3)–1 (other 

than annual updates to the static 

mortality tables issued pursuant to 

§ 1.430(h)(3)–1(a)(3)). 

(ii) Significant change in coverage—

(A) Change in coverage from time of 

experience study. For purposes of 

applying the rules of paragraph 

(d)(4)(i)(C) of this section, a significant 

change in the individuals covered by a 

substitute mortality table occurs if there 

is an increase or decrease in the number 

of individuals of at least 20 percent 

compared to the average number of 

individuals in that population over the 

years covered by the experience study 

on which the substitute mortality tables 

are based. However, a change in 

coverage is not treated as significant if 

the plan’s actuary certifies in writing to 

the satisfaction of the Commissioner 

that the substitute mortality tables used 

for the plan population continue to be 

accurately predictive of future mortality 

of that population (taking into account 

the effect of the change in the 

population). 

(B) Change in coverage from time of 

certification. For purposes of applying 

the rules of paragraph (d)(4)(i)(C) of this 

section, a significant change in the 

individuals covered by a substitute 

mortality table occurs if there is an 

increase or decrease in the number of 

individuals covered by a substitute 

mortality table of at least 20 percent 

compared to the number of individuals 

in a plan year for which a certification 

described in paragraph (d)(4)(ii)(A) of 

this section was made on account of a 

prior change in coverage. However, a 

change in coverage is not treated as 

significant if the plan’s actuary certifies 

in writing to the satisfaction of the 

Commissioner that the substitute 

mortality tables used by the plan with 

respect to the covered population 

continue to be accurately predictive of 

future mortality of that population 

(taking into account the effect of the 

change in the plan population). 

(e) Effective/Applicability date. This 

section applies for plan years beginning 

on or after January 1, 2009. 

■ Par. 4. Section 1.431(c)(6)–1 is added 

to read as follows: 

§ 1.431(c)(6)–1 Mortality tables used to 

determine current liability. 

(a) Mortality tables used to determine 

current liability. The mortality 

assumptions that apply to a defined 

benefit plan for the plan year pursuant 

to section 430(h)(3)(A) and 

§ 1.430(h)(3)–1(a)(2) are used to 

determine a multiemployer plan’s 

current liability for purposes of 

applying the rules of section 431(c)(6). 

A multiemployer plan is permitted to 

apply either the static mortality tables 

used pursuant to § 1.430(h)(3)–1(a)(3) or 

generational mortality tables used 

pursuant to § 1.430(h)(3)–1(a)(4) for this 

purpose. However, for this purpose, a 

multiemployer plan is not permitted to 

use substitute mortality tables under 

§ 1.430(h)(3)–2. 

(b) Effective/applicability date. This 

section applies for plan years beginning 

on or after January 1, 2008. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: July 20, 2008. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. E8–17492 Filed 7–30–08; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 20 

[TD 9414] 

RIN 1545–BE52 

Grantor Retained Interest Trusts—

Application of Sections 2036 and 2039; 

Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendment. 

SUMMARY: This document contains a 

correction to final regulations (TD 9414) 

that were published in the Federal 

Register on Monday, July 14, 2008 (73 

FR 40173). The final regulations provide 

guidance on the portion of property 

transferred to a trust or otherwise, that 

is properly includible in a grantor’s 

gross estate under Internal Revenue 

Code (Code) sections 2036 and 2039 if 

the grantor has retained the use of the 

property or the right to an annuity, 

unitrust, or other payment from such 

property for life, for any period not 

ascertainable without reference to the 

grantor’s death, or for a period that does 

not in fact end before the grantor’s 

death. 

DATES: The correction is effective on 

July 31, 2008 and applicable to the 

estates of decedents dying after August 

16, 1954. 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9414) that is 

the subject of this correction are under 

sections 2036 and 2039 of the Code. 

List of Subjects for 26 CFR Part 20 

Estate taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

■ Accordingly, 26 CFR part 20 is 

corrected by making the following 

correcting amendment: 

PART 20—ESTATE TAX; ESTATES OF 

DECEDENTS DYING AFTER AUGUST 

16, 1954 

■ Paragraph 1. The authority citation 

for part 20 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 2. Section 20.2036–1 is amended 

by adding paragraph (a)(3)(ii) to read as 

follows: 

§ 20.2036–1 Transfers with retained life 

estate. 

(a) * * * 

(3) * * * 

(ii) The right, either alone or in 

conjunction with any other person or 

persons, to designate the person or 

persons who shall possess or enjoy the 

transferred property or its income 

(except that, if the transfer was made 

before June 7, 1932, the right to 

designate must be retained by or 

reserved to the decedent alone). 

* * * * * 

Cynthia E. Grigsby, 

Senior Federal Register Liaison Officer, 

Publications and Regulations Branch, Legal 

Processing Division, Associate Chief Counsel 

(Procedure and Administration). 

[FR Doc. E8–17500 Filed 7–30–08; 8:45 am] 

BILLING CODE 4830–01–P 


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