Last November, the Internal Revenue Service (IRS) issued an advance notice of proposed rulemaking (ANPRM) on the definition of what is a government agency for the purposes of public employee retirement plans. The ANPRM sets forth an extensive discussion of the IRS's view on the characteristics of a governmental retirement plan and offers insight into the IRS’s criteria on how government plan status will be determined.

This notice is just the beginning of the guidance process, and the IRS has asked for public comment on the notice to insure that all stakeholders provide feedback and possible concerns with the rulemaking. Please review the ANPRM to fully understand the implications of the rulemaking and provide public comment by visiting the IRS website. All comments must be submitted by February 6, 2012.