Chapter 11 - Participant and PBGC Notices

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  1. A DB plan must annually provide to participants both an SAR and a funding notice.
    False -

    The SAR is not required for Form 5500 Schedule H filers
  2. For plans with less than 100 participants, an ERISA 204(h) notice must be provided at least 15 days before the effective date of an amendment significantly reducing future accrual rates.
  3. When the plan's AFTAP is 75%, the participants must receive a notice that certain distributions are prohibited within 30 days after the AFTAP is known.
  4. A participant notice must be issued if a required quarterly contribution is 10 days late.
    False -

    A participant notice is only required if the contribution is more than 60 days late, not 10 days.
  5. The annual funding notice for a plan with 50 participants must be distributed no later than the time the Form 5500 is filed, if it was filed timely.
  6. A plan sponsored by a professional service corporation is always exempt from PBGC coverage.
    False -

    Plans of professional service corporations are only exempt from PBGC coverage if the plan has never had more than 25 active participants since the passage of ERISA.
  7. All plans covered by the PBGC are required to pay the variable rate premium.
    False -

    Only plans with unfunded vested benefits are required to pay variable PBGC premiums.
  8. An alternate payee is considered a participant for PBGC premium purposes.
    False -

    An alternate payee under a QDRO is not considered a participant for PBGC premium purposes.
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Chapter 11 - Participant and PBGC Notices
2013-10-22 03:49:41
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