The Department of Labor’s Employee Benefits Security Administration (EBSA) has proposed a rule to implement the annual funding notice requirement under section 101(f) of the Employee Retirement Income Security Act (ERISA). Prior to implementation of the Pension Protection Act, only multi-employer plans were required to disclose any funding information.
Providing annual funding notices. The proposed regulation requires administrators of defined benefit plans that are subject to Title IV of ERISA to provide an annual funding notice to the Pension Benefit Guaranty Corp., plan participants and beneficiaries, and labor organizations representing such participants or beneficiaries. In the case of a multi-employer plan, administrators will also have to provide an annual funding notice to each employer that has an obligation to contribute to the plan.
Almost 30,000 plans covering 44 million participants and beneficiaries are subject to these disclosure requirements.
The proposed rule was published in the Federal Register November 18, 2010.