Funding Based Limitations on Distributions: Notice

[Guest bobolink]

In part, ERISA Section 101(j) requires a notice within 30 days after a plan has "become subject to" a restriction described in (1) or (3) of 202(g). The applicable provisions of 202(g) involve shutdown and other contingent benefit restrictions and lumpsum or other accelerated payment distribution restrictions upon bankruptcy, less than 60 and more than 60 but less than 80.

Assume a plan which does not provide for lump sum or other accelerated forms of distribution which is 70% funded. The plan has become subject to the restrictions, but they have no practical effect. Must the notice be given?

What about the inabililty to amend to increase benefits in this funded status? It doesn't seem that restriction must be communicated.

Any thoughts?

Thanks.

[Guest pwith]

Assuming there is no explicit guidance, seems reasonable to use the same logic as the ERISA 204(h) notice; only participants that are reasonably expected to be affected must receive the ERISA 101(j) notice.