Frequently Asked Questions: Annual Funding Notice

You are receiving this notice because you are a Plan participant, a beneficiary receiving benefits, a participating union or a contributing employer. Pension plan administrators are required to send Annual Funding Notices to keep you informed about the financial status of their pension plan. 

You do not need to take action at this time. This notice is for your information only.

The Annual Funding Notice is designed to provide you with certain information related to the Plan’s funded status. In addition, the Annual Funding Notice contains a summary of the rules that apply if a plan is terminated.

In general, the notice provides information about:

•    How well a pension plan is funded
•    The value of a pension plan’s assets and liabilities
•    How a pension plan’s assets are invested
•    The legal limits on how much the PBGC can pay if a pension plan ends or becomes insolvent

The Pension Benefit Guaranty Corporation (PBGC) protects the retirement incomes of over 33 million American workers in private sector defined benefit pension plans. A defined benefit plan provides a specified monthly benefit at retirement, often based on a combination of salary and years of service. PBGC was created by the Employee Retirement Income Security Act of 1974 to encourage the continuation and maintenance of private sector defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum.  Learn More

No. The Annual Funding Notice must be provided regardless of the Plan’s actual financial condition or level of funding.

Pension plan administrators will send you this notice annually.

For more information about the notice, or questions about your plan or pension benefit, please contact the Trust Fund Office using the contact information provided in the notice.

For more information about the legal limits, please visit: Guaranteed Benefits | Pension Benefit Guaranty Corporation (pbgc.gov)