When a plan sponsor amends their plan to freeze accruals, how much information do you have to provide the participants in the 204(h) notice under EGTRRA? I have heard three opinions from ERISA attorneys:

1. Don't need to show benefits, just describe the amendment;
2. Show the frozen accrued benefit only.
3. Show the projected benefit before the freeze AND the frozen accrued benefit.

not a lawyer.... but dont think treasury has
yet issued final regulations regarding the
egtrra changes to 204h notification rules.

Believe until these regulations are issued,
reviewed, and finalized....... it is "hard
to say" just what is and what is not required;
particularly with respect to the egtrra mandated
changes.

Do believe, I have read that issuance of the
egtrra "new" 204h regs are a high priority.

You might inquire to benefits council, in treasury
as to their timeframe for issuing these new regs.

Until IRS issues regs (something that has been imminent for 6 months now) you must use good faith compliance. What that probably means is that if the plan cutback is more complex than a simple freezing of benefits you will need to have a more complex notice (that showes impact on projected benefits) and probably issue it earlier than the current requirement of 15 days.