Summary Annual Report

[Belgarath]

I've been discussing this with a colleague, and it appears to us that the SAR requirement has not been repealed for ALL traditional DB plans, but only those subject to PBGC.

This led me on a merry romp. I note in passing that such luminaries as Sal Tripodi and Janice Wegesin flatly state that SAR's are no longer required for DB plans. When I view the statutory language of PPA, and the Conference Committee reports, I can see how one might arrive at this conclusion, as there are headings that state that the Summary Annual Report doesn't apply. However, I don't think these can be read in a vacuum. I think the repeal of the SAR requirement does, in fact, apply only to those plans covered by the PBGC. Before agreeing or disagreeing with this, it is probably worthwhile to actually read PPA 503 and the Committee Reports, as well as as WRERA 105. Otherwise, it's hard to get the full flavor of this. But for what appears to be the plain, updated statutory language:

The new ERISA 104(b)(3) as amended, provides for SAR's on plans "...(other than an administrator of a defined benefit plan to which the requirements of section 101(f) applies)..."

And lo and behold, 101(f) applies to defined benefit plans to which title IV applies, which is a PBGC covered plan. So the ERISA 104(b)(3) default to provide an SAR appears to have an exception only for those plans to which 101(f) applies.

I'll be the first to admit I may have missed something crucial here, which is why I'd greatly appreciate opinions on this swill.

Thoughts?

[chc93]

This is how we've read this too... that the SAR was only deleted for DB plans subject to PBGC coverage, and the annual funding notice is now required for DB plans subject to PBGC. So, DB plans not subject to PBGC still have the SAR required.