EBSA News Release: [11/18/2010]
Contact Name: Gloria Della
Phone Number: (202) 693-8666
Release Number: 10-1595-NAT
US Labor Department proposes rule to implement annual funding notice requirement for pension plans
WASHINGTON Pursuant to a requirement imposed by the Pension Protection Act of 2006, the U.S. Department of Labor's Employee Benefits Security Administration today announced a proposed rule to implement the annual funding notice requirement under section 101(f) of the Employee Retirement Income Security Act.
"The Obama administration is taking positive steps to ensure that workers and other interested parties receive valuable information about the funded status of their pension plans as a way to ensure sufficient assets are available to pay future benefits," said EBSA Assistant Secretary Phyllis C. Borzi.
The proposed regulation requires administrators of all defined benefit plans that are subject to Title IV of ERISA to provide an annual funding notice to the Pension Benefit Guaranty Corp., each plan participant and beneficiary, each labor organization representing such participants or beneficiaries and, in the case of a multi-employer plan, to each employer that has an obligation to contribute to the plan. Prior to implementation of the Pension Protection Act, only multi-employer plans were required to disclose any funding information.
An estimated 29,500 plans covering approximately 44 million participants and beneficiaries are subject to these disclosure requirements. Among other information, a funding notice must include the plan's funding target attainment percentage or funded percentage, as applicable, over a period of time.
The proposed regulation contains model notices and is published in today's edition of the Federal Register. For a copy of the proposed regulation, visit http://www.dol.gov/ebsa.