Changing from Mandatory to Discretionary Match

How much notification does a 403(b) need to give participants if they are amending the Plan to go from a mandatory matching contribution to a discretionary?  Is it 60 days?

Thanks!

Even if a plan amendment would “provide for a significant reduction in the rate of future benefit accrual”, an individual-account (defined-contribution) I.R.C. § 403(b) retirement plan likely is not an applicable pension plan (because an individual-account 403(b) plan usually is not subject to an I.R.C. § 412 funding standard). If so, ERISA § 204(h) does not require that subsection’s notice.

Ordinarily, “a summary description of such modification or change [a material modification or a change of information described in ERISA § 102(b)] shall be furnished not later than 210 days after the end of the plan year in which the change [the plan amendment] is adopted[.]” ERISA § 104(b)(1).

If the documents governing the plan provide for a communication, ordinarily a plan fiduciary should obey the documents. See ERISA § 404(a)(1)(D).

Whether ERISA § 404(a)(1) duties of loyalty and prudence calls for a communication and when it ought to be provided are questions each plan fiduciary ought to consider.

This is not advice to anyone.