DOL Issues Guidance on Single-Employer Pension Plan Funding
On March 8, 2013, the Department of Labor issued Field Assistance Bulletin 2013-01 to explain new reporting requirements for single-employer defined benefit pension plans. Under ERISA, pension plans are required to notify participants and beneficiaries of the plan’s funding level. The Moving Ahead for Progress in the 21st Century Act (“MAP-21”) created a temporary supplemental calculation that some plans will use when reporting their funding levels.
Plans are required to calculate their funding status using a two-year average of interest rates for corporate bonds. Under MAP-21, certain plans will also report their funding status using a 25-year average of interest rates, which provides funding relief to these plans. The Field Assistance Bulletin provides detailed instruction on what plans and years are covered by the MAP-21 reporting requirements, and provides a model supplement that covered plans may use to satisfy their reporting requirements.
For more information about these plan reporting requirements, please contact your Trust Fund counsel.
By Daniel S. Brome