>The proposed rules would require administrators of multiemployer pension plans to annually report on the funding status of the plans, according to a DoL press release.
>A notice would have to be sent annually to participants, beneficiaries, labor organizations, contributing employers and the Pension Benefit Guaranty Corporation (PBGC) and must be written in easy to understand language and include financial information about the plan, according to the announcement. If a plan is less than 100% funded, the notice must also include he current funded liability percentage. On top of this, the notice must include a comparison of the plan’s assets to benefits payments, a description of the law governing insolvent plans and information about the PBGCs guarantees, according to the news release.
“This Administration is taking concrete steps to improve the financial integrity of the pension insurance system, including more disclosure of information on the funding of defined benefit plans,” said Assistant Secretary of Labor, Ann Combs, in the release. “We believe these rules will result in greater transparency for workers, employers and the government on how well these plans are funded.”
>Public comments on the proposed regulations should be submitted to the U.S. Department of Labor, Employee Benefits Security Administration (EBSA), Room N5669, 200 Constitution Ave., N.W., Washington, D.C. 20210, Attention: PFEA ’04 Project or by email to e-ORI@dol.gov . The proposed regulation is to be published in Friday’s Federal Register.