ERISA 101(j) Notice

[John Feldt ERPA CPC QPA]

This was at the end of the recent ASPPA ASAP:

"In addition, the IRS says the new ERISA §101(j) notice (provided within 30 days after a limit under IRC §436 kicks in) will satisfy the ERISA §204(h) notice requirement for those changes."

Probably a dumb question, but what is this saying?

[tymesup]

ERISA 101(j) has no meat on its bones.

When IRC 436(e) kicks in, accruals cease (similar to a freeze or plan amendment reducing benefits), aren't you glad PPA protected your pension. Since the 101(j) notice tells them about the decrease, a separate 204(h) Notice would be rubbing salt in the wound.

As a practical matter, you wouldn't be able to issue a 204(h) Notice ahead of time, since you wouldn't necessarily know the numbers or whether a certification would be ready in time.

[John Feldt ERPA CPC QPA]

Thank you!