[Code of Federal Regulations]

[Title 29, Volume 9]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 29CFR2520.101-4]



[Page 411-415]

 

                             TITLE 29--LABOR

 

 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 

                                  LABOR

 

PART 2520_RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE--Table of 

Contents

 

         Subpart A_General Reporting and Disclosure Requirements

 

Sec.  2520.101-4  Annual funding notice for multiemployer defined benefit 

pension plans.



    (a) In general. (1) Except as provided in paragraph (a)(2) of this 

section, pursuant to section 101(f) of the Act, the administrator of a 

defined benefit, multiemployer pension plan shall furnish annually to 

each person specified in paragraph (f) of this section a funding notice 

that conforms to the requirements of this section.

    (2) A plan administrator shall not be required to furnish a funding 

notice for any plan year for which the plan is receiving financial 

assistance from the Pension Benefit Guaranty Corporation pursuant to 

section 4261 of ERISA.

    (b) Content of notice. A funding notice shall, consistent with the 

information included in the plan's Annual Return/Report Form 5500 filed 

for the plan year to which the funding notice relates, include the 

following information:

    (1) The name of the plan;

    (2) The address and phone number of the plan administrator and the 

plan's principal administrative officer (if different from the plan 

administrator);

    (3) The plan sponsor's employer identification number;

    (4) The plan number;

    (5) A statement as to whether the plan's funded current liability 

percentage (as defined in section 302(d)(8)(B) of ERISA) for the plan 

year to which the notice relates is at least 100 percent (and, if not, 

the actual percentage);

    (6) A statement of the market value of the plan's assets (and 

valuation date), the amount of benefit payments, and the ratio of the 

assets to the payments for the plan year to which the notice relates;

    (7) A summary of the rules governing insolvent multiemployer plans, 

including the limitations on benefit payments and any potential benefit 

reductions and suspensions (and the potential effects of such 

limitations, reductions, and suspensions on the plan);

    (8) A general description of the benefits under the plan which are 

eligible to be guaranteed by the Pension Benefit Guaranty Corporation, 

along with an explanation of the limitations on the guarantee and the 

circumstances under which such limitations apply; and

    (9) Any additional information that the plan administrator elects to 

include, provided that such information:

    (i) Is necessary or helpful to understanding the mandatory 

information in the notice, and

    (ii) Is set forth following the information prescribed by paragraphs 

(b)(1) through (b)(8) of this section and shall be headed, ``Additional 

Explanation.''

    (c) Style and format of notice. Funding notices shall be written in 

a manner that is consistent with the style and format requirements of 29 

CFR 2520.102-2.

    (d) When to furnish notice. A funding notice shall be furnished 

within 9 months after the close of the plan year, unless the Internal 

Revenue Service has granted an extension of time to file the annual 

report, in which case such furnishing shall take place within 2 months 

after the close of the extension period.

    (e) Manner of furnishing notice. (1) Except as provided in paragraph 

(e)(2) of this section, funding notices shall be furnished in any manner 

consistent with the requirements of Sec.  2520.104b-1 of this chapter, 

including paragraph (c) of that section relating to the use of 

electronic media.

    (2) Notice shall be furnished to the Pension Benefit Guaranty 

Corporation in a manner consistent with the requirements of part 4000 of 

this title.

    (f) Persons entitled to notice. Persons entitled to notice under 

this section include:

    (1) Each participant covered under the plan on the last day of the 

plan year to which the notice relates;

    (2) Each beneficiary receiving benefits under the plan on the last 

day of the plan year to which the notice relates;

    (3) Each labor organization representing participants under the plan 

on the last day of the plan year to which the notice relates;

    (4) Each employer that, as of the last day of the plan year to which 

the notice relates, is a party to the collective bargaining agreement(s) 

pursuant to which the plan is maintained or who otherwise may be subject 

to withdrawal liability pursuant to section 4203 of the Act; and



[[Page 412]]



    (5) The Pension Benefit Guaranty Corporation.

    (g) Model notice. The appendix to this section contains a model 

notice that is intended to assist plan administrators in discharging 

their notice obligations under this section. Use of the model notice is 

not mandatory. However, use of the model notice will be deemed to 

satisfy the requirements of paragraphs (b) and (c), except with respect 

to information referenced in paragraph (b)(9) of this section.



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[71 FR 1911, Jan. 11, 2006]