204 (h) Notice Rules Are Final

The Internal Revenue Service ("IRS") has issued final regulations governing "204(h) notices", the notices ERISA requires to be provided to certain plan participant and beneficiaries of any amendment which provides for (1) a significant reduction in the rate of future benefit accruals, or (2) the elimination of or significant reduction in an early retirement benefit or retirement-type subsidy for benefits in qualified plans subject to the funding requirements of Internal Revenue Code Section 412. The Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") changed the content and timing requirements for these notices. 401(k) and other types of profit sharing plans are not subject to the 204(h) requirements.