Annual pension funding notice causes widespread participant confusion, termination fears
A recent PBGC website posting reassures pension plan participants that receiving an annual funding notice (AFN) "does not mean that your plan is terminating or that it has been trusteed by the PBGC." The PBGC has been flooded with calls from participants misinterpreting their first AFNs -- distributed by April 30 for calendar-year plans -- as a sign their plans were terminating. The confusion may have resulted from sponsors' use of a DOL model notice prominently stating that the AFN summarizes federal plan termination rules but never mentioning that the plan is not actually terminating. (Select News, 15 May 2009)
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