Amendment Notice - change in eligibility

[Guest jimmybeau]

If a sponsor wants to change from 6month to 1 year waiting period, is a notice required and if so, how far in advance. The hope is to amend that anyone hired on or after July 1, 2009 will have a 1 year wait. The argument is that when the amendment is made it will affect no one who is currently employed and therefore it would be more of an announcement than a required notice.

It just seems to me that everything should have an official notice at least 30 days ahead of time.

Any thoughts?

Jimmy

[Guest Sieve]

If those already hired will be using the 6-month rule, and only new hires will have to wait 1 year, then there is no change that will impact current employees/participants. No mandatory notice required.

[Kevin C]

The only notice requirement I can think of that applies in your situation is the requirement to provide a summary of material modifications or updated SPD reflecting the amendment within 210 days after the end of the plan year. You can provide advanced notice of the change if you want to, but it isn't required.

[BG5150]

The only notice requirement I can think of that applies in your situation is the requirement to provide a summary of material modifications or updated SPD reflecting the amendment within 210 days after the end of the plan year. You can provide advanced notice of the change if you want to, but it isn't required.

I always thought the SMM timing rules were a bit strange, given that you must give out the SAR a mere 2 months after the 5500 is due.