Checklist: Benefit Plan Participant Disclosure Rules
Welfare benefit plans must meet certain participant disclosure rules. Below is a checklist of what documents must be disclosed to participants, along with deadlines. A second checklist indicates which documents must be provided to a participant upon written request.
Mandatory Disclosure To Participants
Summary plan description
- Each participant under a plan must be furnished a copy of the summary plan description within 120 days after a plan becomes subject to ERISA's reporting and disclosure provisions.
- New participants must receive a copy of the SPD within 90 days after first becoming a participant.
- The SPD is to be written in a manner calculated to be understood by the average plan participant.
- A welfare benefit plan administrator is not required to provide a copy of the SPD (nor the updated summary plan description and summary annual report listed below) to each beneficiary receiving benefits unless requested.
- A top-hat welfare benefit plan; i.e., an unfunded or insured plan maintained by an employer for a select group of management or highly compensated employees, is not required to furnish an SPD or any other item in this checklist.
Updated summary plan description
- Every fifth year after a plan becomes subject to the ERISA reporting and disclosure rules, an updated summary plan description must be furnished to participants if the plan has been amended during that five-year period.
- If no plan amendment is made within the five-year period, the updated summary plan description need be furnished only every ten years.
- A plan administrator has until 210 days after the end of the period in which the five-year or ten-year period ends to distribute the updated SPD to participants.
Material plan changes or modifications
A summary of any material change or modification of a plan (SMM) or the information contained in the summary plan description must be furnished to each participant within 210 days after the plan year in which the change or modification is adopted.
Summary annual report
- A summary of the latest annual report is to be furnished to each participant and beneficiary within nine (9) months after the close of the plan year (extended by the DOL from the 210 days required by statute).
- If an extension is granted to file Form 5500, the SAR need not be furnished until two (2) months after the end of the extension.
- An unfunded or insured welfare benefit plan that covers fewer than 100 employees is not required to furnish a summary annual report.
Statement of participant's benefit rights
A detailed statement of the rights of participants and beneficiaries may have to be furnished to each participant or beneficiary receiving benefits.
Notice of denial of claim
Each participant or beneficiary must be provided with a notice giving the reasons why a claim for benefits has been denied, within a reasonable time after the claim is presented.
Disclosure To Participant, Upon Request
- Upon the written request of any participant or beneficiary, the administrator of a welfare benefit plan must furnish the following documents, within 30 days of the request:
Complete copy of latest annual report
- This is a detailed report that must be filed annually with the Labor Department.
- Plan description
- This is a comprehensive plan description that must be filed with the Labor Department.
- Latest updated summary plan description
- This requirement is in addition to the mandatory requirement that a summary plan description be furnished to participants or beneficiaries every five or 10 years.
Plan termination report
This is the report required by the Labor Department for plans that are terminating.
Plan documents
This includes trust agreements, contracts, bargaining agreements, or other instruments under which the plan is established or maintained and which the Labor Department is empowered by law to request from the plan administrator of a welfare benefit plan.
For example, a plan administrator is required to furnish to a participant, upon request, a copy of all or part of a contract between an employee benefit plan and a third-party administrator if the contract establishes, amends, or is a part of an employee benefit plan or otherwise is an instrument under which the plan is established or operated. Examples include contracts that establish or amend a plan, establish a claims procedure, or specify procedures, formulas, methodologies, or schedules to be applied in determining or calculating a participant's or beneficiary's entitlement.
Reprinted with permission. © CCH
Welfare benefit plans must meet certain participant disclosure rules. Below is a checklist of what documents must be disclosed to participants, along with deadlines. A second checklist indicates which documents must be provided to a participant upon written request.
Checklist: Benefit Plan Participant Disclosure Rules
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