The U.S. Department of the Treasury and the Internal Revenue Service announced in Announcement 2016-16 that they will withdraw certain provisions of proposed regulations published in January 2016 (the “Withdrawn Regulations”) relating to certain nondiscrimination requirements applicable to qualified retirement plans. The provisions of the Withdrawn Regulations were intended to address certain plan designs that satisfy existing nondiscrimination rules when providing a special benefit formula for selected employees without extending that formula to a classification of employees that is reasonable and established under objective business criteria. The Withdrawn Regulations would have presented problems for so-called “QSERP” provisions in defined benefit plan and certain cash balance plan designs, among others.

Announcement 2016-16 can be found here.