A new client of ours has been told by his former TPA (doing 12/31/99 work) that his target benefit plan terminated 5/26/99 based on an ERISA Notice dated 5/15/99. Therefore, he has no accrued liability to the plan for 1999. I cannot find the Notice referred to. Can anyone help? Thanks.

I would think the prior TPA must be referring to an ERISA 204(h) notice. This is required when reducing or eliminating the rate of future accruals. There would have to be a related plan amendment, executed by the employer, which was adopted prior to the notice and which is effective no sooner than 15 days after the notice is given to participants. This wouldn't necessarily terminate the plan, however.

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Also, watch out if it was in fact a 204(h) notice and those dates are accurate.

If the target benefit plan were amended to freeze benefit accruals with an effective date of 5/26/99 but the 204(h) notice was distributed 5/15/99, then the 15-day requirement was violated, and the amendment might be void.