Retirement Plan Participants Notices - When Excess Pension Assets Are to be Transferred


An employer sponsoring a defined benefit plan may transfer excess pension assets to fund retiree health benefits or retiree group term life insurance. All plan participants should receive a notice of the employer’s intent to transfer these assets.

Notice of transfer of excess pension assets 

Description: A notice used to notify plan participants and beneficiaries of the employer’s intention to transfer excess defined benefit pension assets to retiree health benefit accounts or to fund group term life insurance. IRC Section 420 (transfers) and ERISA Section 101(e) (notice requirement).

What it should contain: The notice should contain plan and financial information concerning the transfer of excess defined benefit assets. 

Timing: Participants and beneficiaries should receive the notice no later than 60 days before the transfer date.

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

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