ERISA 204(h) Notice Requirements

Summary

This practice note discusses the rules regarding notices to retirement plan participants about certain adverse changes to plan benefits, as required under Section 204(h) of the Employee Retirement Income Security Act (ERISA) and Section 4980F of the Internal Revenue Code (204(h) notices). Plan sponsors must provide a 204(h) notice for a defined benefit plan (or a defined contribution plan subject to ERISA’s funding requirements) when the plan is being amended to reduce or eliminate future benefit accruals, early retirement benefits, or retirement-type subsidies. Other types of defined contribution plans (e.g., 401(k) plans), as well as governmental plans, and church plans that do not elect to be covered under ERISA are not subject to these rules.