Withdrawal Liability Statement?

[Madison71]

I received this Summary Plan Information which said it is a new report being supplied pursuant to PPA. It talks about the contribution schedule and benefit formula. On the second page it has contribution information for the past several years and then a "withdrawal liability pool" and the withdrawal liability amount of the contributing employer if they were to withdraw from the plan. Is this the Withdrawal Liability Statement. If not, does anyone have a sample or could tell me what this Statement should contain?

Thank you.

[Bill Ecklund]

I received this Summary Plan Information which said it is a new report being supplied pursuant to PPA. It talks about the contribution schedule and benefit formula. On the second page it has contribution information for the past several years and then a "withdrawal liability pool" and the withdrawal liability amount of the contributing employer if they were to withdraw from the plan. Is this the Withdrawal Liability Statement. If not, does anyone have a sample or could tell me what this Statement should contain?

Thank you.

Without seeing the report it is hard to say. Each plan has its own statement format for delivering information required by the PPA. What zone is this plan in? If it is yellow or red, the contribution schedule may be what is required by the Funding Improvment Plan or the Rehabilitaiton Plan. The withdrawal liability amount for the contributing employer may be the estimate of withdrawal liability for that employer for a 2009 withdrawal. If this is a calendar year plan, that amount is only valid for 2009 withdrawals. The information for 2010 withdrawals will most likely not be available until spring or summer.

[Madison71]

I received this Summary Plan Information which said it is a new report being supplied pursuant to PPA. It talks about the contribution schedule and benefit formula. On the second page it has contribution information for the past several years and then a "withdrawal liability pool" and the withdrawal liability amount of the contributing employer if they were to withdraw from the plan. Is this the Withdrawal Liability Statement. If not, does anyone have a sample or could tell me what this Statement should contain?

Thank you.

Without seeing the report it is hard to say. Each plan has its own statement format for delivering information required by the PPA. What zone is this plan in? If it is yellow or red, the contribution schedule may be what is required by the Funding Improvment Plan or the Rehabilitaiton Plan. The withdrawal liability amount for the contributing employer may be the estimate of withdrawal liability for that employer for a 2009 withdrawal. If this is a calendar year plan, that amount is only valid for 2009 withdrawals. The information for 2010 withdrawals will most likely not be available until spring or summer.

I'm not sure if I know what you mean by zone - I believe it is in the Central by the name of the Fund. It says Summary Plan Information on top of this report and says this is a new report required by PPA and will be issued annually in the futre.

Thank you.

[Madison71]

I received this Summary Plan Information which said it is a new report being supplied pursuant to PPA. It talks about the contribution schedule and benefit formula. On the second page it has contribution information for the past several years and then a "withdrawal liability pool" and the withdrawal liability amount of the contributing employer if they were to withdraw from the plan. Is this the Withdrawal Liability Statement. If not, does anyone have a sample or could tell me what this Statement should contain?

Thank you.

Without seeing the report it is hard to say. Each plan has its own statement format for delivering information required by the PPA. What zone is this plan in? If it is yellow or red, the contribution schedule may be what is required by the Funding Improvment Plan or the Rehabilitaiton Plan. The withdrawal liability amount for the contributing employer may be the estimate of withdrawal liability for that employer for a 2009 withdrawal. If this is a calendar year plan, that amount is only valid for 2009 withdrawals. The information for 2010 withdrawals will most likely not be available until spring or summer.

I'm not sure if I know what you mean by zone - I believe it is in the Central by the name of the Fund. It says Summary Plan Information on top of this report and says this is a new report required by PPA and will be issued annually in the futre.

Thank you.

[Bill Ecklund]

I received this Summary Plan Information which said it is a new report being supplied pursuant to PPA. It talks about the contribution schedule and benefit formula. On the second page it has contribution information for the past several years and then a "withdrawal liability pool" and the withdrawal liability amount of the contributing employer if they were to withdraw from the plan. Is this the Withdrawal Liability Statement. If not, does anyone have a sample or could tell me what this Statement should contain?

Thank you.

Without seeing the report it is hard to say. Each plan has its own statement format for delivering information required by the PPA. What zone is this plan in? If it is yellow or red, the contribution schedule may be what is required by the Funding Improvment Plan or the Rehabilitaiton Plan. The withdrawal liability amount for the contributing employer may be the estimate of withdrawal liability for that employer for a 2009 withdrawal. If this is a calendar year plan, that amount is only valid for 2009 withdrawals. The information for 2010 withdrawals will most likely not be available until spring or summer.

I'm not sure if I know what you mean by zone - I believe it is in the Central by the name of the Fund. It says Summary Plan Information on top of this report and says this is a new report required by PPA and will be issued annually in the futre.

Thank you.

Zone refers to the funded status of the plan. The choices are: green, yellow or red. What is the name of the plan?

[Madison71]

I found it - it is in the green zone.

[Bill Ecklund]

I found it - it is in the green zone.

That is consistent with what you first stated. That doesn't mean there is no withdrawal liability. It means that the plan is at least 80% funded.

[Madison71]

Understand. I had to go back and get a refresher course on this stuff. Its been a few years and like with anything you don't use it you lose it. Thanks again.

[Guest jklaw]

I think what you may have received is a Summary Plan Information which is now required under ERISA section 104(d). This notice is required on an annual basis (I believe it is due no later than 30 days after the filing of the Form 5500). The Plan must send it to each employee organization (i.e. Union) and each employer with an obligation to contribute under the Plan. Most of the information in the Summary is found on Schedule R to the 5500. There is certain withdrawal liability information required under 104(d)(1)(G). Hope this helps.