PPA DB Plan Benefit Statement Timing

[JRG]

PPA 508 Amended ERISA 105 to require a DB Plan to provide a pension benefit statement at least once every three years (due for the 2009 plan year).

Originally for DC plans, FAB 2006-3 gave 45 days after the plan year to provide the notice, and FAB 2007-3 extended this deadline to the date Form 5500 is filed by the plan.

However, no guidance is given as to how long after the close of the plan year a DB plan has to provide the statement. Are practitioners relying on the 45 day DC plan deadline as good faith? The 120 day deadline to furnish the annual funding notice? Or another deadline?

Thanks.

[carrots]

Why not just give a statement every year?

[JRG]

Some clients haven't done that and wanted to use the three year window. FAB 2007-3 noted that it takes a certain amount of time for DC plans to gather information after the end of the plan year and so it extended the 45 day grace period until the date for filing Form 5500...but did not do so for defined benefit plans (or at least did not exressly say so).

Has anyone received additional guidance from the DOL on this issue?

[gle318612]

During the week of 9-7-09, American Benefits Council (ABC) folks met with certain DOL officials and inquired on this issue. At that meeting, those DOL folks did not sound promising that we'd get guidance on this item very soon...due to the other items on DOL's plate. Our plans are in the same boat...we chose to comply with the every 3-year method found in ERISA 105(a)(1)(B)(i). Note that per the Pension Protection Act of 2006, the DOL was to have developed model benefit statements by 8-18-07. Even though FAB 2006-03 didn't seem to apply to the timing for DB plans under ERISA 105(a)(1)(B)(i), we feel that distributing such statements by that date would fall into the "good-faith reasonable interpretation of this requirement IN THE ABSENCE OF ANY DOL GUIDANCE". I have heard/read comments from knowledgeable folks/entities that indicate the date as anywhere from 12-31-09 to the date of filing of the 2009 5500.

A follow-on item related to this issue is if to/how to deal with the permitted disparity under Code 401(l) which is to be included in such benefit statements. We have both excess and offset plans. nAgain, no guidance whatsoever on this issue. Would appreciate knowing what the person who posted this issue is thinking in this regard...as well any thoughts from respondents to the post. Thanks...