Lifetime income illustrations - pooled plans

Curious as to opinions on this - suppose you have pooled plan, annual valuation only, and the client (on extension) doesn't get you data until the last minute. (Naturally, no one else has any such clients...)

I guess you just have to send them late. Only other alternative is to send them out with duplicate of 12/31/2020 statements, with some sort of disclaimer, but I don't much like that option. 

Other alternatives/thoughts? This is preying on my mind, with a lot of folks on extension this year...

Thanks.

I just went to the DOL's fact sheet:

For plans under which a participant or beneficiary has his or her own account but does not have
the right to direct the investment of assets in that account, the lifetime income illustrations must
be on the statement for the first plan year ending on or after September 19, 2021. For most
such plans, this will be the statement for calendar year 2021, which would be furnished no later
than the last date for timely filing of the annual return for that year for a calendar year plan (Oct.
15, 2022). See Field Assistance Bulletin 2007-03 (Oct. 12, 2007) for timing requirements for
statements for plans subject to ERISA section 105(a)(1)(A)(ii).

This at least suggests you still have time, no?

Thanks Bri. Yes, I know this, but when I said last minute, I literally meant last minute. So to be more specific, suppose you can't send out the statement on or before 10/15, then which option do you use? I KNOW we will have a few of these (thankfully very few).

Oh, gotcha - so not so much thinking 7/31 was last minute.

Hmmm.....so I'm not sure the LII ends up being the biggest hangup, if you've still got the statement obligation itself with the same date.  It feels like the LII add-on isn't going to be what causes you to be late with delivery, but rather just the actual balance determinations themselves.

--bri

If there won’t be time to furnish the lifetime-income illustrations (or the individuals’ account statements) by October 17 but you’re confident the individuals’ December 31, 2021 accounts can be determined by late October, the plan’s administrator might consider then running the illustrations and furnishing them no later than with the summary annual report on 2021.

If the lateness is a month or two in this first cycle, how likely is it that EBSA will pursue enforcement? A participant’s, beneficiary’s, or alternate payee’s enforcement might be remote.

Furnishing illustrations run with December 31, 2000 account balances, 2000 mortality assumptions, and the December 1, 2000 interest rate might be a way to meet the ERISA § 105 command by a compliance date. But a plan’s fiduciary might evaluate whether such an outdated illustration would confuse some participants, beneficiaries, and alternate payees even more than an on-cycle illustration confuses them.

Whichever, the plan’s administrator should choose and own the responsibility.

Thank you both.