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Multi-Employer Funding Notices

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Required Notices on Funding of Multiemployer Defined Benefit Plans: 29 USC §101(f)The Pension Funding Equity Act of 2004 requires multiemployer plans to provide more detailed notices on the status of the pension plan’s assets, and other important information.  The new rule applies to plan years beginning after December 31, 2004.  The information required in the notice is listed below, and must be written in a manner so as to be understood by the average plan participant. A plan funding notice must contain the following information:

  • Whether the plan is currently 100% funded and if not, the current funding percentage
  • The value of the plan’s assets, the amount of benefit payments, and the ratio of the assets to the payments
  • A summary of the rules governing “insolvent” plans which includes reductions of benefits, suspension of benefits, and limitations on benefit payments
  • An explanation of the benefits that the Pension Benefit Guaranty Corporation guarantees and any limitations on those guarantees.

This notice will be similar to the notices already required for single employer plans. The law was signed by the President on April 10, 2004 and became Public Law 108-218 [PDF] Final Regulations were issued on January 11, 2006.

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