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Cypen & Cypen
AUGUST 20, 2009

Stephen H. Cypen, Esq., Editor


Internal Revenue Service has released Revenue Procedure 2009-36, which modifies Revenue Procedure 2007-44 and other previous guidance by IRS with respect to the determination letter application process for governmental retirement plans.  Specifically, Revenue Procedure 2009-36 extends the remedial amendment period during which governmental retirement plans may be amended in order to obtain or retain their tax qualified status.  Under Revenue Procedure 2007-44,  IRS provided that the remedial amendment period for tax-qualified governmental retirement plans that timely submit a determination letter request will end upon expiration of the 91st day after close of the first legislative session that begins more than 120 days after a determination letter is issued for the plan.  In Revenue Procedure 2009-36, in order to give governmental plan sponsors more time to adopt required plan amendments after a determination letter is issued, IRS extended the remedial amendment period to expiration of the 91st day after the last day of the first regular legislative session that begins more than 120 days after a determination letter is issued by IRS for the plan (or the application is withdrawn or otherwise disposed of by IRS) in which the governing body can consider a plan amendment under the laws and procedures applicable to the governing body's deliberations.   Example:  Board of trustees of City X pension plan applied for a determination letter from IRS with respect to its retirement plan on February 2, 2009.  The plan document submitted to IRS is in the form of a draft ordinance that has not yet been enacted by City X.  On September 1, 2009, IRS requests certain revisions to plan document.  On September 21, 2009, board of trustees submits a revised plan document that incorporates revisions requested by IRS.  On November 1, 2009, IRS issues a favorable determination letter with respect to the retirement plan, subject to timely enactment of the ordinance which contains the plan document as submitted by City X.  The first meeting of the City Commission of City X that occurs more than 120 days after the determination letter is issued is March 23, 2010.  The ordinance containing the plan document must be enacted by City X within 91 days of March 23, 2010.  Revenue Procedure 2009-36 is effective August 31, 2009, and can be accessed at

 2.            ABBREVIATED ISSUE: 

Our readers will no doubt recognize the abbreviated nature of this issue.  Well, your editor was busy this week with his younger daughter, who gave birth to grandchild number four, a six pound, eight ounce boy, Izzy Leon Diamond.  Baby and parents are all doing well. 


Here are the next 5 out of 50 lessons on life from the columnist: 

41.            Envy is a waste of time. You already have all you need.
42.            The best is yet to come.
43.            No matter how you feel, get up, dress up and show up.
44.            Yield.
45.            Life isn't tied with a bow, but it's still a gift."

 4.            AN OLD FARMER’S ADVICE: 

Live simply. Love generously. Care deeply. 


A dog gave birth to puppies near the road and was cited for littering. 

 6.            QUOTE OF THE WEEK: 

“Life is uncertain.  Eat dessert first.”  Ernestine Ulmer

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Items in this Newsletter may be excerpts or summaries of original or secondary source material, and may have been reorganized for clarity and brevity. This Newsletter is general in nature and is not intended to provide specific legal or other advice.

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