DOL To Propose Rule On Underfunded Plan Notification

Law360, New York (March 24, 2008, 12:00 AM EDT) -- Following the directive of the Pension Protection Act, the U.S. Department of Labor will propose a rule covering how certain pension plans should provide notice to participants that the plan is significantly underfunded.

Under the Pension Protection Act, if a multi-employer defined-benefit pension plan is in critical funding status, the plan must tell its participants in writing. The proposed rule, to be published in the Federal Register Tuesday, provides an example notice that pension plans can issue that would satisfy the mandate.

The Labor Department is...
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