Employee Benefits Developments For March 2009

Qualified Retirement Plans

For defined benefit plans, the first annual pension funding notice required by the Pension Protection Act of 2006 (PPA) is due to be provided to plan participants by April 30, 2009 for calendar year plans (120 days after the end of the plan year beginning in 2008). Small plans (no more than 100 total participants throughout the year) have until the Form 5500 is due for the plan year beginning in 2008 to provide the first annual notice. Guidance and a sample notice are included in U.S. Department of Labor (DOL) Field Assistance Bulletin 2009-01 available at: http://www.dol.gov/ebsa/regs/fab2009-1.html.

Plan sponsors are reminded of the requirement to notify participants entitled to receive benefits from a defined benefit pension plan or a money purchase pension plan of the consequences of failing to defer the distribution of their benefits. This requirement was added by Section 1102(b)(2)(B) of the PPA and is currently in effect.