Annual Funding Notice
(Multiemployer Defined Benefit Plan)

Summary

Use this template to satisfy the annual funding notice requirement under Employee Retirement Income Security Act (ERISA) § 101(f) for a multiemployer defined benefit plan. This template includes practical guidance, drafting notes and alternate clauses. Update alert: This template has been updated to reflect substantial changes to the annual funding notice rules pursuant to the SECURE 2.0 Act (Pub. L. No. 117-328, Div. T), effective for notices for plan years beginning after December 31, 2023. For guidance on these changes, see Department of Labor, Field Assistance Bulletin 2025-02. For updated model language see FAB 2025-02 Appendix 1 (single employer plans) and FAB 2025-02 Appendix 2 (multiemployer plans). ERISA Section 101(f) (29 U.S.C. § 1021(f)) generally requires plans covered by the ERISA Title IV insurance program to provide an annual notice regarding the plan's funded status to interested parties. Final regulations providing guidance regarding on annual funding notice requirements are found in 80 Fed. Reg. 5,625 (Mar. 4, 2015). Those regulations, however, do not reflect changes to ERISA § 101(f) made by Section 343 of the SECURE 2.0 Act (Pub. L. No. 117-328, Div. T), effective for plan years beginning after December 31, 2023. Initial guidance on those changes is found in DOL, Field Assistance Buletin 2025-02 (FAB 2025-02). The template is based on the model notice language in Appendix 2 of FAB 2025-02, which plan administrators may rely upon pending further guidance from the DOL (unless additional information is required pursuant to ERISA Section 101(f)). Notice recipients include participants and beneficiaries, relevant labor organizations, employers obligated to make contributions to a multiemployer plan, and the Pension Benefit Guarantee Corporation (PBGC), which oversees ERISA Title IV. However, notice to the PBGC may be disregarded unless plan liabilities exceed plan assets by more than $50 million. 29 C.F.R. § 2520.101-5(a)(2), (j). Large plans must furnish the notice by the 120th day following the end of the plan year to which the notice relates (i.e., April 30 for calendar year plans). Small plans (i.e., those having 100 or fewer participants throughout the notice plan year) have until the due date, with extensions, of the plan's Form 5500 Annual Return/Report filed with the DOL. ERISA § 101(f)(3) (29 U.S.C. § 1021(f)(3)); 29 C.F.R. § 2520.101-5(d). Notices may be provided by mail or, if certain requirements are met, electronically to certain participants and beneficiaries. For information about providing the annual funding notice in electronic form, see Electronic Disclosure Rules (ERISA Safe Harbors). Special rules apply in the context of a merger or consolidation of two or more plans, including additional content requirements not included in this template. In such cases, the plan administrator of the successor plan is obliged to provide the annual funding notice for the plan year in which the event occurs. Additional information to incorporate in the notice includes the effective date of the merger or consolidation, an explanation of the event, and the name and plan number of each plan involved. 29 C.F.R. § 2520.101-5(a)(3). There is an alternative method of complying with the annual funding notice requirement for a plan that terminates due to the withdrawal of every employer from the plan or the cessation of the obligation of all employers to contribute under the plan. See 29 C.F.R. § 2520.101-5(k). Note that any plan subject to and satisfies the annual funding notice requirement under ERISA Section 101(f) is relieved from any requirement to furnish a summary annual report for the plan to participants and beneficiaries pursuant to ERISA § 104(b)(3) (29 U.S.C. § 1024(b)(3)). For a full listing of key content covering retirement plan notification requirements, see ERISA Retirement Plan Notices Resource Kit. For more information about providing the annual funding notice, see Employee Benefits Law § 8.09. For information about providing the annual funding notice in electronic form, see Electronic Disclosure Rules (ERISA Safe Harbors). For a model funding notice to be used for a single employer plan, see Annual Funding Notice (Single-Employer Defined Benefit Plan).