Alerts

Multiemployer Defined Benefit Plans to Provide Annual Notice of Funding Status

February 8, 2006

The U.S. Department of Labor's Employee Benefits Security Administration (the "EBSA") has released a final rule (effective February 10, 2006) that requires the administrator of a multiemployer defined benefit plan to provide plan participants, beneficiaries and certain other parties with an annual funding notice setting forth, among other things, whether the plan's funded current liability percentage is at least 100 percent. Consistent with the Annual Return/Report Form 5500, the plan's funded current liability percentage for the purposes of this notice must be calculated using the actuarial assumptions mandated by the Internal Revenue Service (the "IRS") rather than generally applicable actuarial assumptions.