Rev. Proc. 56-42

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to set forth the procedure applicable to the issuance of determination letters where an amendment is made to an existing qualified pension or profit-sharing trust only in such respects as are required to make the trust eligible to participate in a common pension fund or group trust.

SEC. 2. BACKGROUND.

.01 Revenue Ruling 56-267, C. B. 1956-1, 206, holds that where separate tax-exempt trusts, forming parts of employers' qualified pension or profit-sharing plans, pool their funds in a group trust created to provide diversification of investments, the group trust may constitute a tax-exempt trust and the exempt status of the separate trusts will not be adversely affected.

.02 Section 2.02(d) of Revenue Procedure 56-12, C. B. 1956-1, 1029, at page 1031, refers to the procedure with regard to requests for determination letters in the case of a pooled fund arrangement and states that participating trusts are to file requests for such determinations with the District Director of Internal Revenue where the principal place of business of each employer is located.

SEC. 3. PROCEDURE.

Where a favorable determination letter had been issued with regard to the qualification and exemption of an employer's pension or profit-sharing trust under sections 401(a) and 501(a), respectively, of the Internal Revenue Code of 1954, an amendment of the trust agreement only in such respects as is required to make such trust eligible to participate in a qualified common pension fund or group trust (which is itself qualified under section 401(a), and exempt under section 501(a) of the Code) will not adversely affect the exempt status of the participating trust and will not, of itself, make it necessary to secure a new determination letter as to the status of such participating trust.