Q&A Concerning Recent
Annuity Fund Letter and
Notice to Interested Parties

By now, you should have received in the mail a cover letter and a Notice to Interested Parties regarding the Annuity Fund of the PBA (the Plan).  Based on inquiries that we have received from plan participants, we write to provide you with answers to questions that you may have regarding the notice:  

Why have I received this notice?
The Plan has recently requested a written confirmation from the Internal Revenue Service (IRS) that the Plan is qualified under certain sections of the Internal Revenue Code.  This written confirmation is called a “Determination Letter.”  When a retirement plan requests a determination letter from the IRS, the plan is required to provide a notice to interested parties, including current plan participants, of its request.

Is any action required?
No action is required on your part.  The notice is a required notice simply intended to inform you that we have requested a determination letter and to inform you of your independent right to submit your own comments to the IRS regarding the Plan’s qualified status.  If you wish to submit your own comments, please refer to the instructions contained in the notice.  Otherwise, you may disregard the notice entirely.

Why is it important that a retirement plan is qualified under the Internal Revenue Code?
Plans that are qualified under the Internal Revenue Code, and their participants, are afforded favorable tax treatment.  Most importantly, contributions to the plan are tax-deferred and investment earnings are able to grow on a tax-deferred basis until the funds are withdrawn from the plan.

Why is the PBA Annuity Fund requesting a determination letter?
Over time, new legislation and regulations require plans to amend their terms in order to maintain their compliance with the Internal Revenue Code.  The Annuity Fund of the PBA has requested written confirmation from the IRS that the Plan is still in compliance and that plan participants can continue to enjoy the benefits of tax-deferred contributions and investment earnings of a qualified retirement plan.