who are participants for purposes of receiving the first annual funding notice no later than 120 days into 2009 (for the 2008 plan/calendar year)

[gle318612]

The specific question is if a participant has received a complete distribution of his/her benefit from the plan (that plan being subject to Title IV of ERISA) by the end of 2008, is such person a participant for purposes of having to be provided the annual funding notice (AFN) by the Plan Administrator? I don't think FAB 2009-01 sheds much light on this. It seems to simply state that such notice shall be provided to each participant and beneficiary. Perhaps the assumption is that for the AFN, we should rely on the guidance for who should get the Summary Annual Reports when such was the method for providing similar (but a lot less) information to participants. That guidance is at 29 CFR 2520.104b-10 - Summary Annual Report. It doesn't define participant or beneficiary. The term 'participant' is defined as "any employee or former employee of an employer, or any member or former member of an employee organization, who is or may become eligible to receive a benefit of any type from an employee benefit plan which covers employees of such employer or members of such organization, or whose beneficiaries may be eligible to receive any such benefit" (ERISA 3(7)). The term 'beneficiary' is defined as "a person designated by a participant, or by the terms of an employee benefit plan, who is or may become entitled to a benefit thereunder" (ERISA 3(8)).

Similarly, would a person who took a complete distribution from his/her DC plan say before the end of 2008 need to receive the SAR for that plan in 2009 for the 2008 plan year?

We have historically provided SARs to such folks (DB and DC) even if they cashed out prior to the end of the plan year. The AFN requirement and guidance just got me to wondering what others do, is there other guidance on the subject, etc.

Thanks.

[SoCalActuary]

OK you win the award for longest title of a posting.

If a participant has been fully paid out, I don't see how they could potentially become eligible for a future benefit payment. Now if they were paid out a partially vested account, there could be a potential for restoration of their non-vested account. Otherwise, the 1099 should be their final communication from the plan.

[Guest bobolink]

OK you win the award for longest title of a posting.

If a participant has been fully paid out, I don't see how they could potentially become eligible for a future benefit payment. Now if they were paid out a partially vested account, there could be a potential for restoration of their non-vested account. Otherwise, the 1099 should be their final communication from the plan.

I agree with SoCal. The OP has been way conservative in his or her interp of the SAR regs and shouldn't continue that trend with the annual funding notice!

[Andy the Actuary]

The OP has been way conservative in his or her interp of the SAAR regs and shouldn't continue that trend with the annual funding notice!

What is OP? Is this the little boy who used to go down to the fishing hole with Sheriff Andy?

[Mike Preston]

O(riginal) P(oster)