PRC Comments to IRS on Reporting and Notice Requirements for Deferred Vested Benefits
The Pension Rights Center submitted comments to the Internal Revenue Service, objecting to a proposed delegation of authority to the IRS Commissioner to issue certain rules without public notice and comment. The Center expressed concern that such a broad delegation could result in the loss of important statutory rights without input by participants and cited a recent action by the Commissioner. The recent action was announced in the form of a Frequently Asked Question published on the IRS website on April 4, 2012.
The action in question removes the requirement that pension plans give departing employees a personalized “deferred vested statement,” which explicitly states that the former employee is entitled to a retirement benefit and states the amount of the benefit. Instead, plans can give departing employees other plan documents that may not accurately reflect their benefits and will not be as helpful in claiming benefits when the participants retire. The Center’s comments also ask for reconsideration of this action.
Read the comments. [PDF]
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