Notice 2014-53 provides guidance on the changes to the funding stabilization rules for single-employer pension plans under the Internal Revenue Code and ERISA that were made by Section 2003 of the Highway and Transportation Funding Act of 2014 (HATFA), which was enacted on August 8, 2014.  The guidance, released yesterday, states that a plan sponsor can elect to defer use of the HATFA segment rates, either for all purposes or solely for purposes of Section 436 funding-based limits on benefits and benefit accruals in single-employer plans, until the first plan year beginning on or after January 1, 2014, by providing written notice to the enrolled actuary for the plan and to the plan administrator.  Such election is irrevocable.

Notice 2014-53 will appear in IRB 2014-40, dated Sept. 29, 2014.