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Section 4011 of ERISA requires certain underfunded plans to notify participants of the plan's funding status and the limits on the PBGC's guarantee. The PBGC's Participant Notice regulations are at 29 CFR Part 4011. The PBGC issues annual Participant Notice Technical Updates and informal guidance on complying with Participant Notice requirements.
If a Participant Notice is not issued as required, the PBGC may assess penalties under section 4071 of ERISA and 29 CFR part 4071. The PBGC's current penalty policy applies to Participant Notices along with other types of information. On January 12, 2001, the PBGC published a proposed rule that would, among other things, codify in its regulations an expanded version of its 1995 penalty policy. On May 7, 2004, the PBGC published a supplemental proposal on Participant Notice penalties.
Also on May 7, 2004, the PBGC announced in the Federal Register a Participant Notice Voluntary Correction Program ("VCP"), under which the PBGC will not assess a penalty if a Participant Notice failure is corrected in accordance with the program guidelines. The VCP generally covers Participant Notice failures for the 2002 and 2003 plan years. The PBGC will not pursue any failure to provide a pre-2002 Participant Notice unless there is a 2002 or 2003 Participant Notice failure that is covered by the VCP but that does not meet the requirements for penalty relief under the VCP.
Participant Notice Technical Updates
- Technical Update 04-4: 2004 Participant Notice (September 20, 2004)
- Technical Update 03-17: 2003 Model Participant Notice (September 5, 2003)
- Technical Update 02-2: 2002 Model Participant Notice (August 29, 2002)
- Technical Update 01-2: 2001 Model Participant Notice (March 19, 2001)
- Technical Update 00-5: Due Date 2000 Participant Notice (November 22, 2000)
- Technical Update 00-2: 2000 Model Participant Notice (March 27, 2000)
- Technical Update 99-1: 1999 Model Participant Notice (March 1, 1999)
- Technical Update 98-1: 1998 Model Participant Notice (July 16, 1998)
- Technical Update 97-2: 1997 Model Participant Notice (March 17, 1997)
- Technical Update 96-5: 1996 Model Participant Notice (May 9, 1996)
Participant Notice Informal Guidance
In preparation for the March 2004, 2003, 2002, 2001, 2000, and 1998 Enrolled Actuaries Meetings, staff of the Pension Benefit Guaranty Corporation met with representatives of the Enrolled Actuaries Program Committee to discuss a number of questions. Summaries of the questions and answers (in PDF format) discussed at those meetings were published under the auspices of the Enrolled Actuaries Meeting and are available here as a public service. The summaries reflect the views of individual staff members and do not represent the official position of PBGC. The selected questions in the summaries below address Participant Notice issues.
Participant Notice Voluntary Correction Program
Press Release on proposed penalty policy and Participant Notice Voluntary Correction Program
Contact PBGC:
Ask a question about the Participant Notice Voluntary Correction Program.
Check this page in late October for details on how to electronically notify the PBGC that you are participating in the Participant Notice Voluntary Correction Program. You may also notify the PBGC by fax at 202-326-4197, or by mail, commercial delivery service, or hand-delivery to ATTN: Participant Notice VCP, Contracts and Controls Review Department, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Suite 580, Washington, DC 20005-4026.
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