Skip to main content

Practitioners

Long Description for Technical Update 04-4

IMAGE DESCRIPTION
2004 Participant Notice Worksheet

Flowchart provides plan administrators with the necessary process to determine whether a participant notice is required.



  1. if No then 2004 Participant Notice not Required
    if Yes then next (item 2)

    2. Is the plan's FCL Percentage at least 90% for either:
    (a) 2004 (using 100% Weighted Corporate Rate), or
    (b) 2003 (using 120% Weighted Treasury Rate)?

    if Yes then 2004 Participant Notice not Required
    if No then next (item 3)

    3. Is the plan's FCL Percentage at least 80% for the 2004 plan year (using 100% Weighted Corporate Rate) and
    (a) at least 90% for both
    (i) 2003 (using 100% Weighted Corporate Rate or 120% Weighted Treasury Rate), and
    (ii) 2002 (using 100% Weighted Corporate Rate or 120% Weighted Treasury Rate), or
    (b) at least 90% for both
    (i) 2002 (using 100% Weighted Corporate Rate or 120% Weighted Treasury Rate), and
    (ii) 2001 (using 100% Weighted Corporate Rate or 105% Weighted Treasury Rate)?

    if Yes then 2004 Participant Notice not Required
    if No then next (item 4)

    4. Is the plan's FCL Percentage at least 80% for the 2003 plan year (using 120% Weighted Corporate Rate) and
    (a) at least 90% for both
    (i) 2002 (using 120% Weighted Treasury Rate),and
    (ii) 2001 (using 105% Weighted Treasury Rate), or
    (b) at least 90% for both
    (i) 2001 (using 105% Weighted Treasury Rate), and
    (ii) 2000 (using 105% Weighted Treasury Rate)?

    if Yes 2004 Participant Notice not Required
    if No then 2004 Participant Notice Required

    Note - In some cases, it might be simpler to do step 4 before step 3 (for example, if the 2004 FCL Percentage has not yet been calculated or if you already know the answer to step 4 is "yes" because of analysis done when you determined whether a 2003 Participant Notice was required).

Back