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: 2013-01-24
