SSA information in statement to terminated participants

[Guest]

Treasury regulation 301.6057-1(e) requires that statements be provided to terminated participants with a vested account balance no later than the date when the SSA is due. The plan administrator must provide participants with a statement describing the deferred vested retirement benefit to which the participant is entitled. The description provided the participant must include the information filed with respect to the participant on schedule SSA.

I am having a difference in opinion of what should be disclosed to the participant in this statement. The regs. indicate that the statement contain the "participant's information" in the SSA, that being: SSN, Name, if DB plan - Form of Benefit, frequency and the payment amount; if DC plan - vested account balance and, if applicable, # of shares.

This information is found in the Participant Financial Statements (PFS) provided to all participants. To the extent the PFS is provided within the applicable timeframe the requirements have been met. Right?

However, another person thinks that the employer information must also be disclosed in the participant's statement, i.e., SSA Items A, B, C, D, 1 through 3c. I don't concur. However, if this too is required, this information is contained in the SPD and as only as participant has the PFS within the timeframe the requirements have been met.

Thanks!

[Kristina]

I agree with you. I believe the information pertaining to the plan sponsor and the plan was provided in the SPD, which will again be provided to the terminated participant with a deferred vested benefit anytime the plan is restated.

Also, the current address of the plan sponsor is on the envelope when you mail the annual benefit statement to the terminee.

I would recommend that the first required statement have a cover letter which refers to the SPD and how important it is for the terminee to keep the plan sponsor informed of their current address.

[Guest]

Kristina,

Thank you! I just want to make sure the only information we need to provide is in the PFS.

[Guest shafter]

Benefitslink rules! The last piece of information needed for an IRS audit request was to provide statements required under Code section 6057(e). Today's task was to trail through all the cites to get a clear understanding of what this request meant.