IRS: PowerPoint Presentations Constitute Written Notice

March 3, 2004 ( - A PowerPoint presentation concerning a reduction in the employer's contribution rate to a money purchase pension plan is adequate written notice.

The Internal Revenue Service (IRS) in a private ruling found the PowerPoint presentation represented adequate and timely written notice of reductions in benefit accruals.   The IRS ruled that these presentations were adequate notice under the Employee Retirement Income Security Act (ERISA) Section 204(h) and Temporary Reg Section 1.411(d)-6T, according to a CCH report.

In this circumstance, the plan sponsor reduced the employer contribution rate of the plan to 7% of compensation from 15%.   To notify participants, a series of meetings were held by the plan sponsors prior to the implementation of the reduced contribution rate, conducted on PowerPoint with printouts of the presentation available. Since the presentation occurred after the adoption of the plan amendment and no less than 15 days before the effective date of the amendment, notice was also timely, the IRS decreed.