Notification Requirements Upon Leaving

[Guest Peg H]

I am a participant in a DBP as a result of a company with an existing plan purchasing the stock of my former employer. All employees were immediate participants in the plan, with our original hire dates.

Since that time I have left the Company (over a year ago.) I have requested a statement of benefits, and haven't yet received anything. Other employees who were part of the same acquisition were told they would not get statements this year.

Does that sound right? I'm concerned that I get something official from the Plan before I'm gone for too long. What legal rights does the company have under a defined benefit plan for annual notices to employees?

I suppose if all else fails, I could ask for a copy of the 5500 filing and related attachments, but does that show MY name and benefit?

Thanks... Peg

[david rigby]

(1) Are you vested?

(2) The notification requirement is by the time the plan sponsor files the annual report with the IRS (form 5500) for the plan year following the year of serverance of employment. For example, assume a calendar year plan and that you left on June 1, 1997. Then the plan sponsor must notify you (and the SSA) by the filing of the 5500 for the 1998 plan year, which is generally 7 months after the END of that year. In this example, that could be July 31, 1999. (A 2-1/2 month extension is also permitted and is common.)

Note that the form on which you will actually be listed is not open to public inspection because it will likely contain information about other individuals.

[Guest Peg H]

Thanks for the prompt reply!

Yes, I am vested. Your example was prety close, btw... I left July 1, '97 and it is a calendar year plan. At the time I left, based on the original hire date, I had 9 years of employment.

I have written to the company a second time asking for information, maybe I'll hear something soon. I guess I'm planning for the next step if I don't hear.

Peg

[Guest Peg H]

So I'm not unreasonable in making my request after 1 1/2 years!

Thanks for all of the information.

Peg

[Wessex]

Section 105(a) of ERISA requires a plan administrator "to furnish to any plan participant or beneficiary who so requests in writing, a statement indicating, on the basis of the latest available information--

(1) the total benefits accrued, and

(2) the nonforfeitable benefits...

The statement does not have to be provided more than once per year.

See the statement of ERISA rights in your summary plan description.

[Wessex]

P.S. The right to request a benefit statement once a year is in addition to, and not fulfilled by, the statement referred to by David Rigby.