Definition of pension benefit guaranty corporation participant notice requirement

notice added to the Employee Retirement Income Security Act of 1974 (ERISA) requiring the employer to disclose the following information concerning the pension plan to the employee:

1. the ratio of plan assets to current liability (value of the employer retirement benefits earned to date). This ratio is known as the funded percentage.
2. statement that the employer is responsible for paying all earned pension benefits, but such payment could be at risk should the employer have severe financial difficulties. A statement that, if the plan terminates, the Pension Benefit Guaranty Corporation (PBGC) becomes responsible for paying the employees their earned retirement benefits.
3. statements indicating any late funding of minimum contributions and the date the contributions were paid into the plan.
4. statement of any late quarterly contributions (more than 60 days late) and the actual date contributions were made.

   Aplan is subject to this notice requirement for a plan year if the plan paid to the PBGC is a variable premium during that plan year and the minimum funding requirement for the plan year is based on the deficit reduction contribution for the prior or the current plan year. Plans that are subject to this notice requirement for a plan year must notify all plan participants (current employees, vested employees who have terminated, retired employees, and beneficiaries of deceased employees).