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EP Examination Process Guide - Section 9 - Participant Rights - Plan Events - Request of a Waiver of the Minimum Funding Requirement

When the employer requests a waiver of the minimum funding requirement, notice of such must be provided to plan participants, beneficiaries and alternate payees.

Notice of Waiver of Minimum Funding Requirement

Description: The notice is a document provided to each participant, beneficiary and alternate payee under the plan stating that the employer is requesting a minimum funding waiver.

What It Should Contain: The notice should contain the following:

  • name of the plan and the plan sponsor;
  • the plan year for which the waiver is being requested;
  • right to submit relevant information regarding the application for waiver of the minimum funding requirement;
  • right to receive a copy of the latest annual plan report;
  • the present value of vested benefits under the plan;
  • the present value of benefits, calculated as though the plan terminated;
  • the fair market value of plan assets; and
  • the interest rate used in calculating the present values.

Timing: Notice must be given within 14 days prior to the date of the application for a funding waiver.

Who Is Responsible For Sending It: The employer that requests a minimum funding waiver for a defined benefit, target benefit or money purchase pension plan.

Page Last Reviewed or Updated: 17-Sep-2013