Critical Status, Critical and Declining Status, Endangered Status, WRERA Status, and ARP Freeze Election Notices

Under Federal pension law, if a multiemployer pension plan is determined to be in critical status (a plan in critical and declining status is considered to be a plan in critical status) or endangered status, the plan must provide notice of this status to participants, beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation, and the Department of Labor. This requirement applies when a plan has funding or liquidity problems or both as described in the Federal law. If a plan is in critical status, adjustable benefits may be reduced and no lump sum distributions in excess of $5,000 can be made. If a critical status plan is also critical and declining, the plan sponsor may file an application with the Secretary of the Treasury requesting a temporary or permanent reduction of benefits to keep the plan from running out of money. Pension plans in critical and endangered status are required to adopt a plan aimed at restoring the financial health of the pension plan.

The American Rescue Plan Act of 2021 allows multiemployer plans in critical or endangered status that make a special “freeze election” to use their funding status from the preceding year for certain purposes. Some plans that make such election must provide a notice to the plan participants, beneficiaries, and the Department of Labor. For additional information on freeze elections, see I.R.S. Notice 2021-57.

Participants with questions regarding the notices should first contact your plan administrator. If you still have questions, contact the Department of Labor's Employee Benefits Security Administration electronically at askebsa.dol.gov or by calling toll-free 866-444-3272.

Notices may be emailed to the Department of Labor or mailed to the following address:

U.S. Department of Labor
EBSA Public Disclosure Room, N-1515
200 Constitution Avenue NW
Washington, DC 20210

Requesting Copies of Notices

Copies of these notices are available upon request from EBSAs Public Disclosure Room. Send requests for copies of documents to:

U.S. Department of Labor
EBSA Public Disclosure Room, N-1515
200 Constitution Avenue NW
Washington DC 20210
Tel (202) 693-8673
Email foiarequests@dol.gov

Learn more about how to request documents from the Department of Labor in the EBSA publication How to Obtain Employee Benefit Documents from the Department of Labor.