The Department of Labor’s Employee Benefits Security Administration (DOL/EBSA) announced new guidance as featured below. You can subscribe to DOL/EBSA’s home page for updates
Annual funding notice – final rule
On Feb. 2, DOL/EBSA published a final rule implementing the annual funding notice requirements under ERISA Section 101(f), as amended by the Pension Protection Act.
The rule requires the plan administrator of a defined benefit pension plan that is subject to the Pension Benefit Guaranty Corporation’s (PBGC) insurance program to furnish a funding notice annually to participants, beneficiaries, labor organizations representing such participants or beneficiaries, employers obligated to make contributions to a multiemployer plan and the PBGC. The final rule contains model notices.
Among other things, the notice must show the plan’s funding percentage, the assets and liabilities that determine the funding percentage, the fair market value of the plan’s assets on the last day of the plan year, the plan’s funding and investment policies and allocation of assets, and known events that are projected to have a material effect on the plan’s funding.
An estimated 27,000 plans covering approximately 44 million participants and beneficiaries are subject to this disclosure requirement.
Annual funding notice – Field Assistance Bulletin
On Jan.14, DOL/EBSA issued Field Assistance Bulletin (FAB) 2015-01 on the annual funding notice requirements following the Highway and Transportation Funding Act of 2014 (HAFTA).
The FAB provides guidance on compliance by plan administrators of single-employer defined benefit pension plans with the annual funding notice requirements of ERISA Section 101(f) as amended by Section 2003 of the Highway and Transportation Funding Act of 2014. The FAB includes a modified supplement to the model annual funding notice that plan administrators may use to comply.
Outreach and education
For notice of upcoming events as they are scheduled, subscribe to DOL/EBSA’s website home page. DOL/EBSA conducts seminars on retirement plans and health benefits plans for small businesses.