Schedule MB shows serious underfunding When to notify participants

[Guest steward]

Schedule MB filed in November showed the fund is at 70% funding. When should the participants have been notified and when should the recovery plan have bee put into place?

[Effen]

The rules relatating to Critical and Endangered status are fairly complex. You can't simply take a number from the MB and assume it means the plan is Endangered.

That said, the actuary certifies the plan within 90 days after the start of the plan year. If the plan is endangered or critical, the trustees have 30 days to inform the participants and bagaining parties.

In addition, all participants should receive an Annual Funding Notice. This is to be distribute within 9 months after the close of the plan year. It can be very confusing because most of the information in the AFN is over a year old by the time you receive it. But, it would tell you if the plan was Endangered or Critical in the prior year. http://www.dol.gov/dol/allcfr/title_29/Par...R2520.101-4.htm