A sponsor maintains Plan A and Plan B. Information for the 2012 plan year: FTAP Unfunded vested benefitsPlan A 75% $13,000,000 Plan B 84% $50,000,000 Consider the following statement: Reporting under ERISA section 4010 is required for this sponsor for the 2012 plan year.Is the above statement true or false?

Question

Quizplus · Accepted Answer

Under ERISA section 4010, reporting is required for any plan year in which the aggregate unfunded vested benefits of all plans maintained by the sponsor exceed $50 million, considering the plans collectively. Here, the total unfunded vested benefits are $63,000,000 ($13,000,000 from Plan A + $50,000,000 from Plan B), exceeding the $50 million threshold.

A Sponsor Maintains Plan a and Plan B