Withdraw liability

[mal]

Does a plan have any affirmative duty to notify its contributing employers when the actuary has determined the plan has significant withdraw liability? More specifically, I am referring to employers that plan to continue in business and contribute to the fund...not those who may actually be considering stepping away from the plan.

[JanetM]

As far as I know they don't have to tell active employers that the plan is underfunded. If they did - they would be advertising the fact and this would not entice new employers to join.

Case in point - SMW national pension fund - is disaster waiting to happen. Yet they continue to attract new employers to join - without telling them about the definate withdrawal liability.