Retirement Plan Participant Notices - When a Plan Sponsor Submits an Application
When a plan sponsor submits an application to the IRS for a determination letter on the qualified status of a new or amended plan or on plan termination, participants are allowed to comment to the IRS and/or DOL regarding the plan’s qualification and must be notified of their right to comment with an Interested Party Notice.
Interested Party Notice
Description: The Interested Party Notice is a document notifying employees, participants and beneficiaries that an application for determination is being submitted to the IRS. The notice also informs these individuals of their right to comment on the plan.
What it should contain: The notice should contain the following:
- a description of the class or classes of interested parties to whom the notice is addressed;
- a description of the class of employees eligible to participate in the plan;
- the plan’s name and identification number and the name of the plan administrator;
- the applicant’s name and taxpayer identification number;
- that an application for a determination of the qualified status of the plan is being made to the Internal Revenue Service, and whether the application relates to an initial qualification, a plan amendment, plan termination, or a partial termination;
- whether or not the Internal Revenue Service has issued a previous determination letter;
- a statement that any person to whom the notice is addressed is entitled to submit or request the Department of Labor to submit to EP Determinations a comment on the plan’s qualification;
- the specific dates by which a comment must be received;
- the number of interested parties needed in order for the Department of Labor to comment; and
- a description of a reasonable procedure whereby additional information will be available.
Timing: Notice must be mailed or sent (electronic media permissible) in a manner reasonably calculated to ensure that each interested party is notified. Notice must be mailed before the application is submitted to the IRS, between 10 and 24 days before the application date.
Who is responsible for sending it: The plan sponsor.