US - Administrators of multi-employer pension plans will be required to annually furnish a notice on the funding status of plans under provisions of the Pension Funding Equity Act of 2004.
The Department of Labor has announced final rules today, which would ensure workers and employers received important information about the funding status of their multi employer plans and encourage sound funding so sufficient assets would be available to pay future benefits, said Ann Combs, assistant secretary of labor for employee benefits security.
The rules will result in greater transparency for individuals, employers and the government.” The regulation requires a notice to be sent annually to multi employer plan participants, beneficiaries, labour organisations, contributing employers and the Pension Benefit Guaranty Corporation (PBGC).
That notice must include basic financial information about the multi employer plan, such as a statement as to whether or not the plan is 100% funded. The notice must also include a comparison of the plan’s assets to benefit payments, a description of the law governing insolvent multi employer plans and the benefits guaranteed under the PBGC’s multi employer programme. The regulation contains a model notice to reduce compliance burdens on plans and their administrators.
The Labour Department proposed the regulations February 4 last year, and received comments from plan administrators, employers, service providers and others who would be affected. The department then made minor changes to clarify the rules and the accompanying model notice in response to these comments.
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