Information and disclosure

Federal

Employers should be required to keep plan participants informed adequately and in a timely manner about the state of plan funding.

Distressed pension plans—as defined in the Employee Retirement Income Security Act (ERISA)—that are subject to ERISA funding standards and Pension Benefit Guaranty Corporation insurance should be required to provide annual disclosures to participants and beneficiaries. The required disclosures should state that if a plan terminates, there are circumstances that may cause participants to receive retirement benefits that are less than their accrued, vested benefits. Such disclosures, when required, should accompany periodic benefit statements furnished to individual participants. In such years when periodic benefit statements are not furnished, the disclosures should accompany the plan’s annual report.