More key retirement-related regulatory news for plan sponsors, including links to detailed information.
IRS issues guidance on ERISA notification requirements
The Internal Revenue Service has issued Notice 2012-46, which, in question-and-answer format, discusses notification requirements under Section 101(j) of the Employee Retirement Income Security Act (ERISA).
Section 101(j) of ERISA requires the plan administrator of a single-employer defined benefit (DB) plan to provide a written notice to plan participants and beneficiaries, generally within 30 days after the plan becomes subject to the benefit limitations of ERISA section 206(g)(1) or (3).
The guidance addresses such questions as the general timing requirements for providing a section 101(j) notice, including when a plan becomes subject to a limitation on prohibited payments under section 206(g)(3) of ERISA (§ 436[d] of the Code).
IRS Notice 2012-46 will be published in Internal Revenue Bulletin 2012-30, dated July 23.