Accrued benefit statement upon DB accrued benefit statement upon plan

[alexa]

Is an accrued benefit statement required upon a complete freeze of benefits under a DB Plan?

If an accrued benefit statement is not a requirement what is?

Can we still use 15 day notice requirement rather than 45 day new proposed regs since recent regs on notice requirements are only proposed regs?

[Guest Keith N]

What do you mean by "accrued benefit statement"?

I think a freeze requires a 204(h) notice 15 days prior to the freeze. This notice just simply states that the accruals will be frozen as of some date in the future.

[david rigby]

Except that the new regs (proposed I think) change the 15 days to 45 days.

If the phrase "accrued benefit statement" refers to the disclosure in ERISA section 105(a), it is never required based on any action of the employer, only required when requested by the participant.

[alexa]

I thought the new proposed regs require more info than just a notice if benefits are significantly curtailed?

Are we required to give a 45 day advance notice or can we still use old 15 day since regs are only proposed?

[Guest Rae]

I believe the 15-day rule still applies (under the proposed rules) if, as of the effective date of the freeze, fewer than 100 participants have accrued benefits.

The notice itself should have a description of the formula before the amendment, a description of the formula as amended, the effective date of the change, and additional language or examples as needed if the average participant may not be able to understand the formulas.

[alexa]

Thanks

We have 50,000 participants so I guess it's best to go with new 45 day proposed reg requirment as a safe harbor and good faith interpretation of EGTRAA changes