Notice of Benefit Restriction under PPA 06

[Guest lerieleech]

Recently, it was discussed here that there was not a standard notice, at least one that anyone had seen.

Is that still the case? Has anyone seen anything used that they are able to share?

[AndyH]

Nope. Maybe we can do one with collaborative effort. How's this for a start.

(First, Blinky's picture must adorn the top right corner. The top left corner is open to suggestions. Perhaps a bottle of Grey Goose vodka would work)

Dear Victim of the Pension Protection Act of 2006:

We regret to inform you that although this plan used to offer "accelerated payments" such as lumps sums, we need to slow em down until we burn our credit balance or otherwise elevate our AFTAP net of prefunding balance to 80%.

Although this may sound confusing, we assure you that we remain fully committed to terminating the plan as soon as reductions to your lump sum benefit are fully phased in and serve to eliminate the plan's underfunding, making the dream of termination possible.

We will keep you informed as we progress towards these goals.

[Jim Norman]

Nope. Maybe we can do one with collaborative effort. How's this for a start.

Although this may sound confusing, we assure you that we remain fully committed to terminating the plan as soon as reductions to your lump sum benefit are fully phased in and serve to eliminate the plan's underfunding, making the dream of termination possible.

We will keep you informed as we progress towards these goals.

That's pretty much perfect, it is concise, understandable and accurate. Thanks, now I don't have to write one.

[Guest GMP]

I like the one by AndyH much better, but, perhaps this will serve as a starting point.

final_NOTICE_OF_BENEFIT_RESTRICTIONS.doc

[Andy the Actuary]

Restricted_Benefits_Notice.pdfAttached is a pro-forma notice a benefits attorney worked up and I produced the cover.

Any comments would be appreciated.

andy t.a.

[Guest webuck]

At this week's EA meeting a government representative indicated that no model notice will be forthcoming in the near future. Apparently a tech. corrections bill (but maybe not the one now in conference) shifts authority for setting this requirement from Labor to Treasury, so neither is currently working on it.