The Employee Benefits Security Administration (EBSA) will publish a proposed rule (pdf) that implements the annual funding notice requirement for all defined benefit plans. The Pension Protection Act of 2006 (PPA) amended the Employee Retirement Income Security Act (ERISA) to require that administrators of all defined benefit plans, not just multiemployer plans, provide an annual funding notice to the Pension Benefit Guaranty Corporation (PBGC), plan participants and beneficiaries, labor organization representing participants or beneficiaries, and, in the case of a multiemployer plan, each employer that has an obligation to contribute to the plan. This funding notice must include the plan’s funding target attainment percentage, a statement of the value of the plan’s assets and liabilities and a description of how the plan’s assets are invested as of specific dates, a description of the benefits under the plan that are eligible to be guaranteed by the PBGC, and other information relevant to the plan’s funded status. The proposed regulation outlines the scope of an administrator’s obligations in providing this notice and details the content requirements of the notice itself. In addition, the proposed rule’s appendix contains two model notices (one for single employer plans and one for multiemployer plans) for plan administrators to use. According to a summary to be published in the Federal Register, this proposed rule will affect plan administrators, participants and beneficiaries of defined benefit pension plans; labor organizations representing participants and beneficiaries; and contributing employers of multiemployer plans.
Comments on this proposal are due within 60 days of publication, which is scheduled for November 18, 2010. All comments must contain the regulatory identification number: RIN 1210–AB18, and may be submitted via the federal eRulemaking portal or by email: e-ORI@dol.gov (include RIN 1210-AB18 in the subject line of the message). Alternatively, written comments may be sent to: Office of Regulations and Interpretations, Employee Benefits Security Administration, Room N-5655, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, DC 20210, Attention: Annual Funding Notice for Defined Benefit Plans.
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