Comment on FR Doc # 2012-15068

The Pension Action Center’s primary concern is that these regulations do not clarify that a plan administrator is required to provide clear, unambiguous notice to former employees of the amount of the deferred vested pension benefit. Regulations are needed because plan administrators have not been providing individual notices as required by Section 6057(e) of the Internal Revenue Code, but instead have been relying on the accumulation of information provided to participants, including SPDs and benefit statements, to meet this requirement. Regulations must clarify what constitutes a deferred vested pension notice. The IRS has stated in a FAQ published on its website that “…if the required information was timely furnished to participants in other documentation such as benefit statements or distribution forms, [a] separate statement designed specifically to satisfy this requirement is not required. A plan administrator may answer “yes” to Question 8 if the statements or other documentation issued to the participants include the following information:…… “ The problem with this explanation is that it says “…or other documentation…”, allowing plans to meet the requirement without a clear, unambiguous notice of the right to a deferred vested pension as required by IRC section 6057(e). Deferred vested pension notices help plan participants in 4 important ways: they (1) provide proof that the participant is entitled to a pension as determined by the plan administrator; (2) provide information for claiming the pension in the future;(3) help workers plan for their retirement; and (4) provide a timely opportunity to contest the amount. It also constitutes presumptive evidence that a plan has deemed a participant entitled to benefits. Deferred vested pension notices also help to alleviate the “lost pension” problem faced by plan participants who change jobs.