PBGC Form 10 -employee notification

[Guest sueczer]

I'm filing a PBGC Form 10 for missed contributions. I have been all over the PBGC website and the Form 10 instructions trying to determine whether or not there is a mandatory employee notice that needs to go out. Since I cannot find anything, I'm assuming there is no employee notice required. Can anyone confirm this?

[Effen]

Defined Benefit Answer Book - McGhie,Q 28:54,Must employees be informed when an employer fails to meet minimum funding standards?

Last Updated: 11/2010

Yes. When an employer fails to make any payment required to meet the minimum funding standards before the 60th day following the due date of the payment, the employer must notify each participant and beneficiary (including an alternative payee) of the failure. [ ERISA §101(d) ] There is no prescribed format for this notice.

No notice is required if a request for waiver of the funding standard is pending. If the waiver is denied, however, the notice must be provided within 60 days after the denial. [ ERISA §101(d)(2) ]

[AndyH]

Thanks Effen, I forgot that the ERISA requirement exempted payments corrected within 60 days.

sueczer, this is an ERISA requirement - there is not currently a separate PBGC requirement. And there is no prescribed due date for issuing the notice. It is common practice to do so on the next AFN or SAR.

[chc93]

A comment in the ACOPA message boards... ERISA 101(d)(1), last sentence... "Such notice shall be made at such time and in such manner as the Secretary may prescribe." Since such time and manner has not yet been prescribed, there is no requirement yet. Also, another comment that many are apparently not issuing such notices.

[Effen]

that many are apparently not issuing such notices.

I think it is a pretty risky stand to not issue the notice. Based on people I talk to, at all size firms, most are just putting a blurb into the SAR/AFN as Andy said. I don't know anyone who isn't doing it.

[chc93]

that many are apparently not issuing such notices.

I think it is a pretty risky stand to not issue the notice. Based on people I talk to, at all size firms, most are just putting a blurb into the SAR/AFN as Andy said. I don't know anyone who isn't doing it.

Effen, I agree. Just passing on comments I've seen on this question.

[Calavera]

It is common practice to do so on the next AFN or SAR.

The only guidance I was able to find was referring to pre-PPA 4011 notices that were repealed and substituted by AFN.

From 60 FR 34412 dated June 1995

http://www.gpo.gov/fdsys/pkg/FR-1995-06-30/pdf/95-16196.pdf

The Department of Labor has advised PBGC that, in the absence of final regulations implementing section 101(d) of ERISA requiring notice of failure to meet minimum funding standards), it will treat a plan administrator that provides a Participant Notice as having satisfied section 101(d) with respect to any missed contributions identified in the Participant Notice.