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EP Examination Process Guide - Section 9 - Participant Rights - Plan Events - When Funding Falls Below a Certain Level

In a defined benefit plan, when funding falls below a certain level a notice must be issued outlining the estimated under-funded amount and the Pension Benefit Guaranty Corporation coverage.

Pension Benefit Guaranty Corporation (PBGC) Participant Notice
PBGC is a wholly owned government corporation that is responsible for administering various termination rules and establishing a mechanism for insuring benefits.

Description: A notice issued for an under-funded defined benefit plan subject to a variable rate premium and deficit reduction contribution.

What It Should Contain: The notice should contain the plan’s under-funded status and the PBGC coverage.

Timing: No later than two months after the Annual Report, (Form 5500), for the previous year is due.  The notice may be issued in conjunction with the Summary Annual Report. 

Who Is Responsible For Sending It: The administrator of the plan.

Page Last Reviewed or Updated: 16-Dec-2013