Reporting & Disclosure

[Guest pcjackson]

Hi,

PPA required the DOL to provide a model for the new Annual Funding Notice for Single Employers. The notice must distributed by April 30th & I cannot find the DOL model anywhere. The only model funding notice I find is for the pre-PPA Multiemployer Funding Notice.

Can anyone tell me where I can find DOL's model for the single employer funding notice?

Thanks,

pcjackson

[mwyatt]

Perhaps (and I say this with my tongue firmly in cheek) it can be found next to the model notice that the DOL was supposed to provide last August for DC plans. Anyone seen that one yet?

[AndyH]

Related question: Endangered status certifications are due to be filed today for calendar year plans. Filing must be made with Secretary (of Treasury presumably) and plan sponsor per Code Sec 432(b)(3)(A).

Where do Treasury filings get sent? Cannot find anything anywhere that describes this process or provides an address. We've scoured the IRS and Treasury websites and done much Googling.

Anybody filed one of these?

[SoCalActuary]

Where do Treaury fulings get sent? Cannot find anything anywhere that describes this process or provides an address including the IRS and Treasury websites and much Googling.

Anybody filed one of these?

I hate when I type too fast.

Was that Treasury filings, or Treasury foolings, or Treasury foulings?

[ak2ary]

Regs came out on the 14th for Multi's I am trying to get a link to a copy

[ak2ary]

Here ya go

multi_regs.PDF

[AndyH]

The regs provide the Model Notice and help with that. The certification to the sponsor and Treasury are separate and the procedure is not addressed by those regs.

[ak2ary]

See column 3 page 14425 has address and content requirements for the certififcation

[AndyH]

Beautiful. Thank you very much. We missed that somehow.

[AndyH]

Where do Treaury fulings get sent? Cannot find anything anywhere that describes this process or provides an address including the IRS and Treasury websites and much Googling.

Anybody filed one of these?

I hate when I type too fast.

Was that Treasury filings, or Treasury foolings, or Treasury foulings?

Blame it on AFTAPs and Notices dependent upon 11th hour guidance. I'm switching to 412(i)'s from now on.

[Andy the Actuary]

Could someone please clarify. assuming a calendar year plan.

(1) Is generally the first annual notice due 4/30/2009 for the 2008 plan year?

(2) If a Plan paid the variable premium in 2007, then is an abbreviated notice due 4/30/2008 that shows the 2007 AFTAP?

Thank you,

andy t. a.

[Calavera]

Andy, I agree with (1) but where is (2) came from?

[Andy the Actuary]

Andy, I agree with (1) but where is (2) came from?

This is where my head fills up with fuzz. My understanding is PPA eliminated the specific notice to be provided when a plan was subject to pay the variable premium (notwithstanding the drc exception). The "annual notice" was to take its place. However, since there wasn't an annual notice requirement for 2008, we would send an abbreviated notice. This is what I thought PPA Sec. 501(d) was directing.

(d) Effective Date-

(1) IN GENERAL- The amendments made by this section shall apply to plan years beginning after December 31, 2007, except that the amendment made by subsection (b) shall apply to plan years beginning after December 31, 2006.

(2) TRANSITION RULE- Any requirement under section 101(f) of the Employee Retirement Income Security Act of 1974 (as amended by this section) to report the funding target attainment percentage or funded percentage of a plan with respect to any plan year beginning before January 1, 2008, shall be treated as met if the plan reports--

(A) in the case of a plan year beginning in 2006, the funded current liability percentage (as defined in section 302(d)(8) of such Act) of the plan for such plan year, and

(B) in the case of a plan year beginning in 2007, the funding target attainment percentage or funded percentage as determined using such methods of estimation as the Secretary of the Treasury may provide.

Am I misinterpreting what this says? Please tell me I am.

[AndyH]

412(i)'s rule. Hope there's another boot camp soon.

[Calavera]

Here is my understanding of PPA Sec. 501(d).

PPA Sec. 501(d)(1) states that new notes will be required for plan years beginning after 12/31/2007 and eliminates the requirement for 4011 notice for plan years beginning after 12/31/2006. So calendar year plan does not require any notices for the 2007 plan year.

Since the new notices have to contain FTAP for the plan year and 2 preceding plan years, PPA Sec. 501(d)(2) defines what to report for 2006 and 2007 instead of FTAP.

I hope this is correct.

[JAY21]

So did we decide if anything is needed for the 2007 plan year ?

[Andy the Actuary]

I read the Committee Reports which appear to support the position that they are talking about what to include in the notice rather than when the notice must be given. As Gen Y kids would say, "my bad."

Thank you.

andy t. a.