Retirement Plan Participant Notices - Annual Benefits Statement


Description: An individual statement reflecting a participant's accrued and vested amounts. It may also identify benefits that may be forfeited upon a participant's termination.

What it should contain: The statement should identify the participant's accrued benefit and vested pension amount. An accrued benefit for a participant in a defined contribution plan (e.g., profit-sharing plan), is the amount in that participant's individual account at any given time. In a defined benefit plan, the accrued benefit is the benefit that will be provided when the participant reaches the plan's normal retirement age. A vested benefit is the portion of the participant's benefit that is not at risk of being forfeited.

Timing: The annual benefits statement may be provided upon written request if permitted by a plan provision; however, it is not required to be issued more than once every 12 months.

Who is responsible for sending it: The administrator of the plan.

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