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Compliance March 24, 2008
DoL Issues Model Notice for Multiemployer Plans in Critical Status
March 24, 2008 (PLANSPONSOR.com) - The U.S.
Department of Labor (DoL) announced it will publish a
proposed regulation providing a model notice for use by
multiemployer defined benefit plans to notify plan
participants and others that their plan is in critical
funding status, as required by the Pension Protection Act of
2006 (PPA).
Reported by Rebecca Moore
The DoL explained in its announcement that the PPA amended the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code to require that sponsors of multiemployer defined benefit pension plans in critical status for a plan year provide notice of this status to participants, beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corp. (PBGC), and the Department of Labor. The notice must inform participants that their plan is in critical status and of the possibility that adjustable benefits may be reduced or even eliminated.
The public may submit comments on the proposed regulations to the DoL at e-ORI@dol.gov or through www.regulations.gov . Paper-based comments should be sent to the Office of Regulations and Interpretations, Employee Benefits Security Administration, Room N-5655, U.S. Department of Labor, 200 Constitution Ave. N.W., Washington, D.C. 20210, Attention: Notice of Critical Status.
The proposed regulation is to be published in the March 25 edition of the Federal Register .