Annual Funding Notice Required?

[Guest DBStudentAct]

A calendar year plan terminated last year in April.

The plan is still in the process of distributing participant benefits. The participant count was about 300 as at 1/1/2010. After distributions there are about 55 participants left in the plan whose benefits have not been paid out.

Does this plan need an annual funding notice for the 2010 plan year to be prepared and distributed to the remaining participants? Or since the count is now much less and also the plan has terminated, the funding notice is no longer required to be prepared?

Thanks in advance for all clarifications and replies.

[SoCalActuary]

I believe you are still required to complete this filing, since you still have a plan in force covered by PBGC.

[Guest DBStudentAct]

I believe you are still required to complete this filing, since you still have a plan in force covered by PBGC.

I thought the 2010 Annual Funding Notice is meant to provide participants with the funded status information of the plan as of 1-1-2010. The plan terminated during the year 2010 and we are now in April 2011. Most of the participants know that the plan is terminated and about 70% are already paid out. This makes me feel they may not have a need to be sent the AFN…….Any comments on my interpretation?

[Andy the Actuary]

"Theirs not to make reply, Theirs not to reason why, Theirs but to do and die."