Retire Early Home Page Discussion Board

[mickeyd]

The Department of Labor has proposed rules it hopes will foster better disclosure about the funding status of defined benefit plans. The rules fulfill provisions of the Pension Funding Equity Act of 2004, which require plan administrators of multi-employer pension plans to provide an annual notice to plan participants, beneficiaries, labor organizations, contributing employers and the Pension Benefit Guaranty Corporation (PBGC) on the financial situation of these plans. The information must include—in easily understood language—whether the plan is 100% funded, and if not, the plan’s current liability percentage. The goal is to “ensure sufficient assets are available to pay future benefits,” said Assistant Secretary of Labor Ann Combs in a prepared statement.


The annual funding rule also requires a comparison of the plan’s assets to benefit payments, a description of the law governing insolvent plans, and the PBGC’s benefit guarantees; the PBGC guarantees only vested benefits. Although the agency has yet to issue the final rules, a spokeswoman says good faith compliance is expected.
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regards,mickeyd
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[tmeri]