Pension Protection Act Blog

The Dept. of Labor has updated Field Advisory Bulletin 2006-03. FAB 2006-03, issued last year, requires that pension benefit statement information will be furnished to participants and beneficiaries not later than 45 days following the end of the calendar quarter or calendar year as good faith compliance with Section 508 of the Pension Protection Act.

In Field Advisory Bulletin 2007-03, issued on October 12th, the Dept. of Labor supercedes FAB 2006-03 as it relates to the dates for some plans for furnishing pension benefit statements to participants and beneficiaries. For individual account plans which do not permit participants and beneficiaries to direct the investment of assets in their individual accounts, the participants and beneficiaries can be furnished with statements on or before the date on which the Form 5500 Annual Return/Report is filed by the plan (but in no event later than the date, including extensions, on which the Annual Return/Report is required to be filed by the plan) for the plan year to which the statement relates.

The DOL reasoned that, since much of the required information in the pension benefit statements is compiled when preparing the plan’s Form 5500 Annual Return/Report, the time frame for furnishing the statements should correspond to the required filing of the plan’s Form 5500.

The Dept. of Labor did not change the requirements for plans which do permit participants and beneficiaries to direct the investment of assets in their individual accounts.

The Dept. of Labor also has not released the Model Statement which was expected to be released on August 18, 2007.

Technorati Tags: Pension Protection Act, ppa, 508, benefit statement, 2007-03, 2006-03, FAB, Field Advisory Bulletin, Form 5500, ERISA