Content of 204(h) Notice

[Gary]

Does a 204(h) Notice have to contain language that explains that future accruals will be reduced or need it just summarize the plan change without explicitly saying that there is a reduction in future accruals?

[Lorraine Dorsa]

Unfortunately (or fortunately in some cases), there is no specific language requirements for a 204(h) notice. I tend to be very explicit and repear the language from the statute re "reduction of future accruals" to avoid any question that the notice is a 204(h) notice, but I've seen them phrased in all sorts of ways.

Some employers want to water down the language for employee relations purposes, but I'm concerned that if the participants can't clearly see what is happening that the notice could be challenged and deemed invalid, in which case benefits must continue at the old rate until a new notice is given.

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