DOL Issues Guidance on New Information Required in Annual Funding Notice for DB Plans
The DOL issued Field Assistance Bulletin 2013-01 which provides guidance on new information that is required in the Annual Funding Notice for certain single-employer defined benefit plans. More specifically, new information must be included in a plan’s 2012 Annual Funding Notice if the plan sponsor took advantage of the lower interest rates under the 2012 MAP-21 Act. The MAP-21 Act provided funding relief for defined benefit plans in the form of new lower interest rates that plan sponsors could elect to use for funding purposes. If a plan sponsor elected to use these lower interest rates in 2012, the plan’s 2012 Annual Funding Notice must include certain new information that has not been required in past years. Importantly, the Field Assistance Bulletin provides a model supplement that can be used to satisfy this new requirement. For plans that operate on the calendar year, the 2012 Annual Funding Notice must be provided to participants no later than April 30, 2013.