part 1—reporting and disclosure
§1021. Duty of disclosure and reporting
(a) Summary plan description and information to be furnished to participants and beneficiaries
The administrator of each employee benefit plan shall cause to be furnished in accordance with
(1) a summary plan description described in section 1022(a)(1) 1 of this title; and
(2) the information described in subsection (f) and sections 1024(b)(3) and 1025(a) and (c) of this title.
(b) Reports to be filed with Secretary of Labor
The administrator shall, in accordance with
(1) the annual report containing the information required by
(2) terminal and supplementary reports as required by subsection (c) of this section.
(c) Terminal and supplementary reports
(1) Each administrator of an employee pension benefit plan which is winding up its affairs (without regard to the number of participants remaining in the plan) shall, in accordance with regulations prescribed by the Secretary, file such terminal reports as the Secretary may consider necessary. A copy of such report shall also be filed with the Pension Benefit Guaranty Corporation.
(2) The Secretary may require terminal reports to be filed with regard to any employee welfare benefit plan which is winding up its affairs in accordance with regulations promulgated by the Secretary.
(3) The Secretary may require that a plan described in paragraph (1) or (2) file a supplementary or terminal report with the annual report in the year such plan is terminated and that a copy of such supplementary or terminal report in the case of a plan described in paragraph (1) be also filed with the Pension Benefit Guaranty Corporation.
(d) Notice of failure to meet minimum funding standards
(1) In general
If an employer maintaining a plan other than a multiemployer plan fails to make a required installment or other payment required to meet the minimum funding standard under
(2) Subsection not to apply if waiver pending
This subsection shall not apply to any failure if the employer has filed a waiver request under
(3) Definitions
For purposes of this subsection, the terms "required installment" and "due date" have the same meanings given such terms by
(e) Notice of transfer of excess pension assets to health benefits accounts
(1) Notice to participants
Not later than 60 days before the date of a qualified transfer by an employee pension benefit plan of excess pension assets to a health benefits account or applicable life insurance account, the administrator of the plan shall notify (in such manner as the Secretary may prescribe) each participant and beneficiary under the plan of such transfer. Such notice shall include information with respect to the amount of excess pension assets, the portion to be transferred, the amount of health benefits liabilities or applicable life insurance benefit liabilities expected to be provided with the assets transferred, and the amount of pension benefits of the participant which will be nonforfeitable immediately after the transfer.
(2) Notice to Secretaries, administrator, and employee organizations
(A) In general
Not later than 60 days before the date of any qualified transfer by an employee pension benefit plan of excess pension assets to a health benefits account or applicable life insurance account, the employer maintaining the plan from which the transfer is made shall provide the Secretary, the Secretary of the Treasury, the administrator, and each employee organization representing participants in the plan a written notice of such transfer. A copy of any such notice shall be available for inspection in the principal office of the administrator.
(B) Information relating to transfer
Such notice shall identify the plan from which the transfer is made, the amount of the transfer, a detailed accounting of assets projected to be held by the plan immediately before and immediately after the transfer, and the current liabilities under the plan at the time of the transfer.
(C) Authority for additional reporting requirements
The Secretary may prescribe such additional reporting requirements as may be necessary to carry out the purposes of this section.
(3) Definitions
For purposes of paragraph (1), any term used in such paragraph which is also used in
(f) Defined benefit plan funding notices
(1) In general
The administrator of a defined benefit plan to which subchapter III applies shall for each plan year provide a plan funding notice to the Pension Benefit Guaranty Corporation, to each plan participant and beneficiary, to each labor organization representing such participants or beneficiaries, and, in the case of a multiemployer plan, to each employer that has an obligation to contribute to the plan.
(2) Information contained in notices
(A) Identifying information
Each notice required under paragraph (1) shall contain identifying information, including the name of the plan, the address and phone number of the plan administrator and the plan's principal administrative officer, each plan sponsor's employer identification number, and the plan number of the plan.
(B) Specific information
A plan funding notice under paragraph (1) shall include—
(i)(I) in the case of a single-employer plan, a statement as to whether the plan's percentage of plan liabilities funded (as described in clause (ii)(I)(bb)) for the plan year to which the notice relates, and for the 2 preceding plan years, is at least 100 percent (and, if not, the actual percentages), or
(II) in the case of a multiemployer plan, a statement as to whether the plan's funded percentage (as defined in section 1085(i) 1 of this title) for the plan year to which the notice relates, and for the 2 preceding plan years, is at least 100 percent (and, if not, the actual percentages),
(ii)(I) in the case of a single-employer plan—
(aa) a statement of the value of the plan's assets and liabilities for the plan year to which the notice relates as of the last day of the plan year to which the notice relates, and for the preceding 2 plan years as of the last day of each such plan year, determined using the asset valuation under subclause (II) of
(bb) for purposes of the statement in subparagraph (B)(i)(I), the percentage of plan liabilities funded, calculated as the ratio between the value of the plan's assets and liabilities, as determined under item (aa), for the plan year to which the notice relates and for the 2 preceding plan years, and
(cc) if the information in (aa) and (bb) is presented in tabular form, a statement that describes that in the event of a plan termination the corporation's calculation of plan liabilities may be greater and that references the section of the notice with the information required under clause (x), and
(II) in the case of a multiemployer plan, a statement, for the plan year to which the notice relates and the preceding 2 plan years, of the value of the plan assets (determined both in the same manner as under
(iii) a statement of the number of participants for the plan year to which the notice relates as of the last day of such plan year and the preceding 2 plan years, in tabular format, who are—
(I) retired or separated from service and are receiving benefits,
(II) retired or separated participants entitled to future benefits, and
(III) active participants under the plan,
(iv) a statement setting forth the funding policy of the plan, the asset allocation of investments under the plan (expressed as percentages of total assets), and the average return on assets for the plan year, as of the end of the plan year to which the notice relates,
(v) in the case of a multiemployer plan, whether the plan was in critical or endangered status under
(I) a statement describing how a person may obtain a copy of the plan's funding improvement or rehabilitation plan, as appropriate, adopted under
(II) a summary of any funding improvement plan, rehabilitation plan, or modification thereof adopted under
(vi) in the case of a multiemployer plan, whether the plan was in critical and declining status under
(I) the projected date of insolvency;
(II) a clear statement that such insolvency may result in benefit reductions; and
(III) a statement describing whether the plan sponsor has taken legally permitted actions to prevent insolvency.2
(vii) in the case of any plan amendment, scheduled benefit increase or reduction, or other known event taking effect in the current plan year and having a material effect on plan liabilities or assets for the year (as defined in regulations by the Secretary), an explanation of the amendment, schedule increase or reduction, or event, and a projection to the end of such plan year of the effect of the amendment, scheduled increase or reduction, or event on plan liabilities,
(viii)(I) in the case of a single-employer plan, a summary of the rules governing termination of single-employer plans under subtitle C of subchapter III, or
(II) in the case of a multiemployer plan, a summary of the rules governing reorganization or insolvency, including the limitations on benefit payments,
(ix) in the case of a single-employer plan, a statement as to whether the plan's funded status, based on the plan's liabilities described under subclause (II) for the plan year to which the notice relates, and for the 2 preceding plan years, is at least 100 percent (and, if not, the actual percentages), that includes—
(I) the plan's assets, as of the last day of the plan year and for the 2 preceding plan years, as determined under clause (ii)(I)(aa),
(II) the plan's liabilities, as of the last day of the plan year and for the 2 preceding plan years, as determined under clause (ii)(1)(aa), and
(III) the funded status of the plan, determined as the ratio of the plan's assets and liabilities calculated under subclauses (I) and (II), for the plan year to which the notice relates, and for the 2 preceding plan years,
(x) a general description of the benefits under the plan which are eligible to be guaranteed by the Pension Benefit Guaranty Corporation, along with an explanation of the limitations on the guarantee and the circumstances under which such limitations apply and a statement that, in the case of a single-employer plan—
(I) if plan assets are determined to be sufficient to pay vested benefits that are not guaranteed by the Pension Benefit Guaranty Corporation, participants and beneficiaries may receive benefits in excess of the guaranteed amount, and
(II) such a determination generally uses assumptions that result in a plan having a lower funded status as compared to the plan's funded status disclosed in this notice.
(xi) a statement that a person may obtain a copy of the annual report of the plan filed under
(xii) if applicable, a statement that each contributing sponsor, and each member of the contributing sponsor's controlled group, of the single-employer plan was required to provide the information under
(C) Other information
Each notice under paragraph (1) shall include—
(i) in the case of a multiemployer plan, a statement that the plan administrator shall provide, upon written request, to any labor organization representing plan participants and beneficiaries and any employer that has an obligation to contribute to the plan, a copy of the annual report filed with the Secretary under
(ii) any additional information which the plan administrator elects to include to the extent not inconsistent with regulations prescribed by the Secretary.
(D) Effect of segment rate stabilization on plan funding
(i) In general
In the case of a single-employer plan for an applicable plan year, each notice under paragraph (1) shall include—
(I) a statement that the MAP-21, the Highway and Transportation Funding Act of 2014,,3 the Bipartisan Budget Act of 2015,,3 the American Rescue Plan Act of 2021, and the Infrastructure Investment and Jobs Act modified the method for determining the interest rates used to determine the actuarial value of benefits earned under the plan, providing for a 25-year average of interest rates to be taken into account in addition to a 2-year average,
(II) a statement that, as a result of the MAP-21, the Highway and Transportation Funding Act of 2014,,3 the Bipartisan Budget Act of 2015,,3 the American Rescue Plan Act of 2021, and the Infrastructure Investment and Jobs Act, the plan sponsor may contribute less money to the plan when interest rates are at historical lows, and
(III) a table which shows (determined both with and without regard to
(ii) Applicable plan year
For purposes of this subparagraph, the term "applicable plan year" means any plan year beginning after December 31, 2011, and before January 1, 2034, for which—
(I) the funding target (as defined in
(II) the plan has a funding shortfall (as defined in
(III) the plan had 50 or more participants on any day during the preceding plan year.
For purposes of any determination under subclause (III), the aggregation rule under the last sentence of
(iii) Special rule for plan years beginning before 2012
In the case of a preceding plan year referred to in clause (i)(III) which begins before January 1, 2012, the information described in such clause shall be provided only without regard to
(E) Effect of CSEC plan rules on plan funding
In the case of a CSEC plan, each notice under paragraph (1) shall include—
(i) a statement that different rules apply to CSEC plans than apply to single-employer plans,
(ii) for the first 2 plan years beginning after December 31, 2013, a statement that, as a result of changes in the law made by the Cooperative and Small Employer Charity Pension Flexibility Act, the contributions to the plan may have changed, and
(iii) in the case of a CSEC plan that is in funding restoration status for the plan year, a statement that the plan is in funding restoration status for such plan year.
A copy of the statement required under clause (iii) shall be provided to the Secretary, the Secretary of the Treasury, and the Director of the Pension Benefit Guaranty Corporation.
(3) Time for providing notice
(A) In general
Any notice under paragraph (1) shall be provided not later than 120 days after the end of the plan year to which the notice relates.
(B) Exception for small plans
In the case of a small plan (as such term is used under
(4) Form and manner
Any notice under paragraph (1)—
(A) shall be provided in a form and manner prescribed in regulations of the Secretary,
(B) shall be written in a manner so as to be understood by the average plan participant, and
(C) may be provided in written, electronic, or other appropriate form to the extent such form is reasonably accessible to persons to whom the notice is required to be provided.
(g) Reporting by certain arrangements
The Secretary shall, by regulation, require multiple employer welfare arrangements providing benefits consisting of medical care (within the meaning of
(h) Simple retirement accounts
(1) No employer reports
Except as provided in this subsection, no report shall be required under this section by an employer maintaining a qualified salary reduction arrangement under
(2) Summary description
The trustee of any simple retirement account established pursuant to a qualified salary reduction arrangement under
(A) The name and address of the employer and the trustee.
(B) The requirements for eligibility for participation.
(C) The benefits provided with respect to the arrangement.
(D) The time and method of making elections with respect to the arrangement.
(E) The procedures for, and effects of, withdrawals (including rollovers) from the arrangement.
(3) Employee notification
The employer shall notify each employee immediately before the period for which an election described in
(i) Notice of blackout periods to participant or beneficiary under individual account plan
(1) Duties of plan administrator
In advance of the commencement of any blackout period with respect to an individual account plan, the plan administrator shall notify the plan participants and beneficiaries who are affected by such action in accordance with this subsection.
(2) Notice requirements
(A) In general
The notices described in paragraph (1) shall be written in a manner calculated to be understood by the average plan participant and shall include—
(i) the reasons for the blackout period,
(ii) an identification of the investments and other rights affected,
(iii) the expected beginning date and length of the blackout period,
(iv) in the case of investments affected, a statement that the participant or beneficiary should evaluate the appropriateness of their current investment decisions in light of their inability to direct or diversify assets credited to their accounts during the blackout period, and
(v) such other matters as the Secretary may require by regulation.
(B) Notice to participants and beneficiaries
Except as otherwise provided in this subsection, notices described in paragraph (1) shall be furnished to all participants and beneficiaries under the plan to whom the blackout period applies at least 30 days in advance of the blackout period.
(C) Exception to 30-day notice requirement
In any case in which—
(i) a deferral of the blackout period would violate the requirements of subparagraph (A) or (B) of
(ii) the inability to provide the 30-day advance notice is due to events that were unforeseeable or circumstances beyond the reasonable control of the plan administrator, and a fiduciary of the plan reasonably so determines in writing,
subparagraph (B) shall not apply, and the notice shall be furnished to all participants and beneficiaries under the plan to whom the blackout period applies as soon as reasonably possible under the circumstances unless such a notice in advance of the termination of the blackout period is impracticable.
(D) Written notice
The notice required to be provided under this subsection shall be in writing, except that such notice may be in electronic or other form to the extent that such form is reasonably accessible to the recipient.
(E) Notice to issuers of employer securities subject to blackout period
In the case of any blackout period in connection with an individual account plan, the plan administrator shall provide timely notice of such blackout period to the issuer of any employer securities subject to such blackout period.
(3) Exception for blackout periods with limited applicability
In any case in which the blackout period applies only to 1 or more participants or beneficiaries in connection with a merger, acquisition, divestiture, or similar transaction involving the plan or plan sponsor and occurs solely in connection with becoming or ceasing to be a participant or beneficiary under the plan by reason of such merger, acquisition, divestiture, or transaction, the requirement of this subsection that the notice be provided to all participants and beneficiaries shall be treated as met if the notice required under paragraph (1) is provided to such participants or beneficiaries to whom the blackout period applies as soon as reasonably practicable.
(4) Changes in length of blackout period
If, following the furnishing of the notice pursuant to this subsection, there is a change in the beginning date or length of the blackout period (specified in such notice pursuant to paragraph (2)(A)(iii)), the administrator shall provide affected participants and beneficiaries notice of the change as soon as reasonably practicable. In relation to the extended blackout period, such notice shall meet the requirements of paragraph (2)(D) and shall specify any material change in the matters referred to in clauses (i) through (v) of paragraph (2)(A).
(5) Regulatory exceptions
The Secretary may provide by regulation for additional exceptions to the requirements of this subsection which the Secretary determines are in the interests of participants and beneficiaries.
(6) Guidance and model notices
The Secretary shall issue guidance and model notices which meet the requirements of this subsection.
(7) Blackout period
For purposes of this subsection—
(A) In general
The term "blackout period" means, in connection with an individual account plan, any period for which any ability of participants or beneficiaries under the plan, which is otherwise available under the terms of such plan, to direct or diversify assets credited to their accounts, to obtain loans from the plan, or to obtain distributions from the plan is temporarily suspended, limited, or restricted, if such suspension, limitation, or restriction is for any period of more than 3 consecutive business days.
(B) Exclusions
The term "blackout period" does not include a suspension, limitation, or restriction—
(i) which occurs by reason of the application of the securities laws (as defined in
(ii) which is a change to the plan which provides for a regularly scheduled suspension, limitation, or restriction which is disclosed to participants or beneficiaries through any summary of material modifications, any materials describing specific investment alternatives under the plan, or any changes thereto, or
(iii) which applies only to 1 or more individuals, each of whom is the participant, an alternate payee (as defined in
(8) Individual account plan
(A) In general
For purposes of this subsection, the term "individual account plan" shall have the meaning provided such term in
(B) One-participant retirement plan
For purposes of subparagraph (A), the term "one-participant retirement plan" means a retirement plan that on the first day of the plan year—
(i) covered only one individual (or the individual and the individual's spouse) and the individual (or the individual and the individual's spouse) owned 100 percent of the plan sponsor (whether or not incorporated), or
(ii) covered only one or more partners (or partners and their spouses) in the plan sponsor.
(j) Notice of funding-based limitation on certain forms of distribution
The plan administrator of a single-employer plan shall provide a written notice to plan participants and beneficiaries within 30 days—
(1) after the plan has become subject to a restriction described in paragraph (1) or (3) of
(2) in the case of a plan to which
(3) at such other time as may be determined by the Secretary of the Treasury.
The notice required to be provided under this subsection shall be in writing, except that such notice may be in electronic or other form to the extent that such form is reasonably accessible to the recipient. The Secretary of the Treasury, in consultation with the Secretary, shall have the authority to prescribe rules applicable to the notices required under this subsection.
(k) Multiemployer plan information made available on request
(1) In general
Each administrator of a defined benefit plan that is a multiemployer plan shall, upon written request, furnish to any plan participant or beneficiary, employee representative, or any employer that has an obligation to contribute to the plan a copy of—
(A) the current plan document (including any amendments thereto),
(B) the latest summary plan description of the plan,
(C) the current trust agreement (including any amendments thereto), or any other instrument or agreement under which the plan is established or operated,
(D) in the case of a request by an employer, any participation agreement with respect to the plan for such employer that relates to the employer's plan participation during the current or any of the 5 immediately preceding plan years,
(E) the annual report filed under
(F) the plan funding notice provided under subsection (f) for any plan year,
(G) any periodic actuarial report (including any sensitivity testing) received by the plan for any plan year which has been in the plan's possession for at least 30 days,
(H) any quarterly, semi-annual, or annual financial report prepared for the plan by any plan investment manager or advisor or other fiduciary which has been in the plan's possession for at least 30 days,
(I) audited financial statements of the plan for any plan year,
(J) any application filed with the Secretary of the Treasury requesting an extension under
(K) in the case of a plan which was in critical or endangered status under
(2) Compliance
Information required to be provided under paragraph (1)—
(A) shall be provided to the requesting participant, beneficiary, or employer within 30 days after the request in a form and manner prescribed in regulations of the Secretary,
(B) may be provided in written, electronic, or other appropriate form to the extent such form is reasonably accessible to persons to whom the information is required to be provided, and
(C) shall not—
(i) include any individually identifiable information regarding any plan participant, beneficiary, employee, fiduciary, or contributing employer, or
(ii) reveal any proprietary information regarding the plan, any contributing employer, or entity providing services to the plan.
Subparagraph (C)(i) shall not apply to individually identifiable information with respect to any plan investment manager or adviser, or with respect to any other person (other than an employee of the plan) preparing a financial report required to be included under paragraph (1)(B).1
(3) Limitations
In no case shall a participant, beneficiary, employee representative, or employer be entitled under this subsection to receive more than one copy of any document described in paragraph (1) during any one 12-month period, or, in the case of any document described in subparagraph (E), (F), (G), (H) or (I) of paragraph (1), a copy of any such document that as of the date on which the request is received by the administrator, has been in the administrator's possession for 6 years or more. If the administrator provides a copy of a document described in paragraph (1) to any person upon request, the administrator shall be considered as having met any obligation the administrator may have under any other provision of this subchapter to furnish a copy of the same document to such person upon request. The administrator may make a reasonable charge to cover copying, mailing, and other costs of furnishing copies of information pursuant to paragraph (1). The Secretary may by regulations prescribe the maximum amount which will constitute a reasonable charge under the preceding sentence.
(l) Notice of potential withdrawal liability
(1) In general
The plan sponsor or administrator of a multiemployer plan shall, upon written request, furnish to any employer who has an obligation to contribute to the plan a notice of—
(A) the estimated amount which would be the amount of such employer's withdrawal liability under part 1 of subtitle E of subchapter III if such employer withdrew on the last day of the plan year preceding the date of the request, and
(B) an explanation of how such estimated liability amount was determined, including the actuarial assumptions and methods used to determine the value of the plan liabilities and assets, the data regarding employer contributions, unfunded vested benefits, annual changes in the plan's unfunded vested benefits, and the application of any relevant limitations on the estimated withdrawal liability.
For purposes of subparagraph (B), the term "employer contribution" means, in connection with a participant, a contribution made by an employer as an employer of such participant.
(2) Compliance
Any notice required to be provided under paragraph (1)—
(A) shall be provided in a form and manner prescribed in regulations of the Secretary to the requesting employer within—
(i) 180 days after the request, or
(ii) subject to regulations of the Secretary, such longer time as may be necessary in the case of a plan that determines withdrawal liability based on any method described under paragraph (4) or (5) of
(B) may be provided in written, electronic, or other appropriate form to the extent such form is reasonably accessible to employers to whom the information is required to be provided.
(3) Limitations
In no case shall an employer be entitled under this subsection to receive more than one notice described in paragraph (1) during any one 12-month period. The person required to provide such notice may make a reasonable charge to cover copying, mailing, and other costs of furnishing such notice pursuant to paragraph (1). The Secretary may by regulations prescribe the maximum amount which will constitute a reasonable charge under the preceding sentence.
(m) Notice of right to divest
Not later than 30 days before the first date on which an applicable individual of an applicable individual account plan is eligible to exercise the right under
(1) setting forth such right under such section, and
(2) describing the importance of diversifying the investment of retirement account assets.
The notice required by this subsection shall be written in a manner calculated to be understood by the average plan participant and may be delivered in written, electronic, or other appropriate form to the extent that such form is reasonably accessible to the recipient.
(n) Pension-linked emergency savings accounts
Nothing in this section shall preclude the Secretary from providing, by regulations or otherwise, simplified reporting procedures or requirements regarding such a pension-linked emergency savings account.
(o) Cross reference
For regulations relating to coordination of reports to the Secretaries of Labor and the Treasury, see
(
Editorial Notes
References in Text
The MAP–21, referred to in subsecs. (f)(2)(D)(i)(I) and (II), also known as the Moving Ahead for Progress in the 21st Century Act, is
The Highway and Transportation Funding Act of 2014, referred to in subsec. (f)(2)(D)(i)(I) and (II), is
The Bipartisan Budget Act of 2015, referred to in subsec. (f)(2)(D)(i)(I) and (II), is
The American Rescue Plan Act of 2021, referred to in subsec. (f)(2)(D)(i)(I) and (II), is
The Infrastructure Investment and Jobs Act, referred to in subsec. (f)(2)(D)(i)(I) and (II), is
The Cooperative and Small Employer Charity Pension Flexibility Act, referred to in subsec. (f)(2)(E)(ii), is
The content of paragraph (1)(B) of subsec. (k) (relating to financial reports), referred to in subsec. (k)(2), was moved to subsec. (k)(1)(H) as a result of the general amendment of subsec. (k)(1) by
Amendments
2022—Subsec. (e)(3).
Subsec. (f)(2)(B)(i)(I).
Subsec. (f)(2)(B)(ii)(I).
Subsec. (f)(2)(B)(ii)(I)(aa).
Subsec. (f)(2)(B)(ii)(I)(bb), (cc).
Subsec. (f)(2)(B)(ii)(II).
Subsec. (f)(2)(B)(iii).
Subsec. (f)(2)(B)(iv).
Subsec. (f)(2)(B)(ix).
Subsec. (f)(2)(B)(x).
Subsec. (f)(2)(B)(xi), (xii).
Subsecs. (n), (o).
2021—Subsec. (f)(2)(D)(i)(I), (II).
Subsec. (f)(2)(D)(ii).
2015—Subsec. (e)(3).
Subsec. (f)(2)(D)(i)(I), (II).
Subsec. (f)(2)(D)(ii).
2014—Subsec. (d)(2).
Subsec. (d)(3).
Subsec. (f)(2)(B)(vi) to (xi).
Subsec. (f)(2)(D)(i)(I), (II).
Subsec. (f)(2)(D)(ii).
Subsec. (f)(2)(E).
Subsec. (k)(1).
Subsec. (k)(3).
2012—Subsec. (e)(1).
Subsec. (e)(2)(A).
Subsec. (e)(3).
Subsec. (f)(2)(D).
2010—Subsec. (g).
2008—Subsec. (f)(2)(B)(ii)(I)(aa).
Subsec. (f)(2)(B)(ii)(II).
Subsec. (i)(8)(B).
"(i) on the first day of the plan year—
"(I) covered only one individual (or the individual and the individual's spouse) and the individual (or the individual and the individual's spouse) owned 100 percent of the plan sponsor (whether or not incorporated), or
"(II) covered only one or more partners (or partners and their spouses) in the plan sponsor, and
"(ii) does not cover a business that leases employees."
Subsec. (j).
Subsec. (k)(2).
2006—Subsec. (a)(2).
Subsec. (d)(3).
Subsec. (e)(3).
Subsec. (f).
Subsec. (i)(8)(B).
"(i) on the first day of the plan year—
"(I) covered only the employer (and the employer's spouse) and the employer owned the entire business (whether or not incorporated), or
"(II) covered only one or more partners (and their spouses) in a business partnership (including partners in an S or C corporation (as defined in
"(ii) meets the minimum coverage requirements of
"(iii) does not provide benefits to anyone except the employer (and the employer's spouse) or the partners (and their spouses),
"(iv) does not cover a business that is a member of an affiliated service group, a controlled group of corporations, or a group of businesses under common control, and".
Subsec. (j).
Subsec. (k).
Subsec. (l).
Subsec. (m).
Subsec. (n).
2004—Subsec. (e)(3).
Subsec. (f).
2002—Subsecs. (h) to (j).
1999—Subsec. (e)(3).
1998—Subsec. (f).
1997—Subsec. (b).
"(1) the summary plan description described in
"(2) a plan description containing the matter required in
"(3) modifications and changes referred to in
1996—Subsec. (g).
Subsec. (h).
1994—Subsec. (e)(3).
1993—Subsecs. (f), (g).
1990—Subsecs. (e), (f).
1989—Subsec. (a)(2).
Subsec. (d)(1).
1987—Subsecs. (d), (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by section 127(c)(2) of
Amendment by section 606(b)(1) of
Effective Date of 2021 Amendment
Amendment by
Amendment by
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2014 Amendment
Amendment by
Amendment by
Effective Date of 2012 Amendment
Amendment by section 40211(b)(2)(A) of
Amendment by section 40242(e)(14) of
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2006 Amendment
"(1)
"(2)
"(A) the later of—
"(i) the date on which the last collective bargaining agreement relating to the plan terminates (determined without regard to any extension thereof agreed to after the date of the enactment of this Act [Aug. 17, 2006]), or
"(ii) the first day of the first plan year to which the amendments made by this section would (but for this paragraph) apply, or
"(B) January 1, 2010.
For purposes of subparagraph (A)(i), any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement added by this section shall not be treated as a termination of such collective bargaining agreement."
"(1)
"(2)
"(A) in the case of a plan year beginning in 2006, the funded current liability percentage (as defined in section 302(d)(8) of such Act [
"(B) in the case of a plan year beginning in 2007, the funding target attainment percentage or funded percentage as determined using such methods of estimation as the Secretary of the Treasury may provide."
Amendment by section 502(a)(1), (b)(1) of
"(1)
"(2)
Effective Date of 2004 Amendment
Effective Date of 2002 Amendment
Amendment by
Effective Date of 1999 Amendment
Amendment by
Effective Date of 1998 Amendment
Effective Date of 1996 Amendments
Amendment by
Amendment of
Amendment by
Effective Date of 1993 Amendment
"(1)
"(2)
"(A) during the period after the date before the date of the enactment of this Act and before such first plan year, the plan is operated in accordance with the requirements of the amendments made by this section, and
"(B) such plan amendment applies retroactively to the period after the date before the date of the enactment of this Act and before such first plan year.
A plan shall not be treated as failing to be operated in accordance with the provisions of the plan merely because it operates in accordance with this paragraph."
Effective Date of 1990 Amendment
Effective Date of 1989 Amendment
Amendment by section 7881(b)(5)(A) of
Amendment by section 7894(b)(2) of
Effective Date of 1987 Amendment
Regulations
Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see
Applicability of Amendments by Subtitles A and B of Title I of Pub. L. 109–280
For special rules on applicability of amendments by subtitles A (§§101–108) and B (§§111–116) of title I of
Statements
Model Notices and Forms
Plan Amendments Not Required Until July 30, 2002
For provisions directing that if any amendment made by section 306(b) of
Plan Amendments Not Required Until January 1, 1998
For provisions directing that if any amendments made by subtitle D [§§1401–1465] of title I of
1 See References in Text note below.
2 So in original. The period probably should be a comma.
4 So in original. The closing parenthesis probably should not appear.
§1022. Summary plan description
(a) A summary plan description of any employee benefit plan shall be furnished to participants and beneficiaries as provided in
(b) The summary plan description shall contain the following information: The name and type of administration of the plan; in the case of a group health plan (as defined in
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (b), was in the original "this Act", meaning
The Health Insurance Portability and Accountability Act of 1996, referred to in subsec. (b), is
Amendments
2009—Subsec. (b).
1997—
Subsec. (a).
Subsec. (b).
1996—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date of 1996 Amendments
Amendment by
Amendment by
Regulations
Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see
§1023. Annual reports
(a) Publication and filing
(1)(A) An annual report shall be published with respect to every employee benefit plan to which this part applies. Such report shall be filed with the Secretary in accordance with
(B) The annual report shall include the information described in subsections (b) and (c) and where applicable subsections (d), (e), (f), and (g) and shall also include—
(i) a financial statement and opinion, as required by paragraph (3) of this subsection, and
(ii) an actuarial statement and opinion, as required by paragraph (4) of this subsection.
(2) If some or all of the information necessary to enable the administrator to comply with the requirements of this subchapter is maintained by—
(A) an insurance carrier or other organization which provides some or all of the benefits under the plan, or holds assets of the plan in a separate account,
(B) a bank or similar institution which holds some or all of the assets of the plan in a common or collective trust or a separate trust, or custodial account, or
(C) a plan sponsor as defined in
such carrier, organization, bank, institution, or plan sponsor shall transmit and certify the accuracy of such information to the administrator within 120 days after the end of the plan year (or such other date as may be prescribed under regulations of the Secretary).
(3)(A) Except as provided in subparagraph (C), the administrator of an employee benefit plan shall engage, on behalf of all plan participants, an independent qualified public accountant, who shall conduct such an examination of any financial statements of the plan, and of other books and records of the plan, as the accountant may deem necessary to enable the accountant to form an opinion as to whether the financial statements and schedules required to be included in the annual reports by subsection (b) of this section are presented fairly in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Such examination shall be conducted in accordance with generally accepted auditing standards, and shall involve such tests of the books and records of the plan as are considered necessary by the independent qualified public accountant. The independent qualified public accountant shall also offer his opinion as to whether the separate schedules specified in subsection (b)(3) of this section and the summary material required under
(B) In offering his opinion under this section the accountant may rely on the correctness of any actuarial matter certified to by an enrolled actuary, if he so states his reliance.
(C) The opinion required by subparagraph (A) need not be expressed as to any statements required by subsection (b)(3)(G) prepared by a bank or similar institution or insurance carrier regulated and supervised and subject to periodic examination by a State or Federal agency if such statements are certified by the bank, similar institution, or insurance carrier as accurate and are made a part of the annual report.
(D) For purposes of this subchapter, the term "qualified public accountant" means—
(i) a person who is a certified public accountant, certified by a regulatory authority of a State;
(ii) a person who is a licensed public accountant licensed by a regulatory authority of a State; or
(iii) a person certified by the Secretary as a qualified public accountant in accordance with regulations published by him for a person who practices in States where there is no certification or licensing procedure for accountants.
(4)(A) The administrator of an employee pension benefit plan subject to the reporting requirement of subsection (d) of this section shall engage, on behalf of all plan participants, an enrolled actuary who shall be responsible for the preparation of the materials comprising the actuarial statement required under subsection (d) of this section. In a case where a plan is not required to file an annual report, the requirement of this paragraph shall not apply, and, in a case where by reason of
(B) The enrolled actuary shall utilize such assumptions and techniques as are necessary to enable him to form an opinion as to whether the contents of the matters reported under subsection (d) of this section—
(i) are in the aggregate reasonably related to the experience of the plan and to reasonable expectations; and
(ii) represent his best estimate of anticipated experience under the plan.
The opinion by the enrolled actuary shall be made with respect to, and shall be made a part of, each annual report.
(C) For purposes of this subchapter, the term "enrolled actuary" means an actuary enrolled under subtitle C of subchapter II of this chapter.
(D) In making a certification under this section the enrolled actuary may rely on the correctness of any accounting matter under subsection (b) to which any qualified public accountant has expressed an opinion, if he so states his reliance.
(b) Financial statement
An annual report under this section shall include a financial statement containing the following information:
(1) With respect to an employee welfare benefit plan: a statement of assets and liabilities; a statement of changes in fund balance; and a statement of changes in financial position. In the notes to financial statements, disclosures concerning the following items shall be considered by the accountant: a description of the plan including any significant changes in the plan made during the period and the impact of such changes on benefits; a description of material lease commitments, other commitments, and contingent liabilities; a description of agreements and transactions with persons known to be parties in interest; a general description of priorities upon termination of the plan; information concerning whether or not a tax ruling or determination letter has been obtained; and any other matters necessary to fully and fairly present the financial statements of the plan.
(2) With respect to an employee pension benefit plan: a statement of assets and liabilities, and a statement of changes in net assets available for plan benefits which shall include details of revenues and expenses and other changes aggregated by general source and application. In the notes to financial statements, disclosures concerning the following items shall be considered by the accountant: a description of the plan including any significant changes in the plan made during the period and the impact of such changes on benefits; the funding policy (including policy with respect to prior service cost), and any changes in such policies during the year; a description of any significant changes in plan benefits made during the period; a description of material lease commitments, other commitments, and contingent liabilities; a description of agreements and transactions with persons known to be parties in interest; a general description of priorities upon termination of the plan; information concerning whether or not a tax ruling or determination letter has been obtained; and any other matters necessary to fully and fairly present the financial statements of such pension plan.
(3) With respect to all employee benefit plans, the statement required under paragraph (1) or (2) shall have attached the following information in separate schedules:
(A) a statement of the assets and liabilities of the plan aggregated by categories and valued at their current value, and the same data displayed in comparative form for the end of the previous fiscal year of the plan;
(B) a statement of receipts and disbursements during the preceding twelve-month period aggregated by general sources and applications;
(C) a schedule of all assets held for investment purposes aggregated and identified by issuer, borrower, or lessor, or similar party to the transaction (including a notation as to whether such party is known to be a party in interest), maturity date, rate of interest, collateral, par or maturity value, cost, and current value;
(D) a schedule of each transaction involving a person known to be party in interest, the identity of such party in interest and his relationship or that of any other party in interest to the plan, a description of each asset to which the transaction relates; the purchase or selling price in case of a sale or purchase, the rental in case of a lease, or the interest rate and maturity date in case of a loan; expense incurred in connection with the transaction; the cost of the asset, the current value of the asset, and the net gain (or loss) on each transaction;
(E) a schedule of all loans or fixed income obligations which were in default as of the close of the plan's fiscal year or were classified during the year as uncollectable and the following information with respect to each loan on such schedule (including a notation as to whether parties involved are known to be parties in interest): the original principal amount of the loan, the amount of principal and interest received during the reporting year, the unpaid balance, the identity and address of the obligor, a detailed description of the loan (including date of making and maturity, interest rate, the type and value of collateral, and other material terms), the amount of principal and interest overdue (if any) and an explanation thereof;
(F) a list of all leases which were in default or were classified during the year as uncollectable; and the following information with respect to each lease on such schedule (including a notation as to whether parties involved are known to be parties in interest): the type of property leased (and, in the case of fixed assets such as land, buildings, leasehold, and so forth, the location of the property), the identity of the lessor or lessee from or to whom the plan is leasing, the relationship of such lessors and lessees, if any, to the plan, the employer, employee organization, or any other party in interest, the terms of the lease regarding rent, taxes, insurance, repairs, expenses, and renewal options; the date the leased property was purchased and its cost, the date the property was leased and its approximate value at such date, the gross rental receipts during the reporting period, expenses paid for the leased property during the reporting period, the net receipts from the lease, the amounts in arrears, and a statement as to what steps have been taken to collect amounts due or otherwise remedy the default;
(G) if some or all of the assets of a plan or plans are held in a common or collective trust maintained by a bank or similar institution or in a separate account maintained by an insurance carrier or a separate trust maintained by a bank as trustee, the report shall include the most recent annual statement of assets and liabilities of such common or collective trust, and in the case of a separate account or a separate trust, such other information as is required by the administrator in order to comply with this subsection; and
(H) a schedule of each reportable transaction, the name of each party to the transaction (except that, in the case of an acquisition or sale of a security on the market, the report need not identify the person from whom the security was acquired or to whom it was sold) and a description of each asset to which the transaction applies; the purchase or selling price in case of a sale or purchase, the rental in case of a lease, or the interest rate and maturity date in case of a loan; expenses incurred in connection with the transaction; the cost of the asset, the current value of the asset, and the net gain (or loss) on each transaction. For purposes of the preceding sentence, the term "reportable transaction" means a transaction to which the plan is a party if such transaction is—
(i) a transaction involving an amount in excess of 3 percent of the current value of the assets of the plan;
(ii) any transaction (other than a transaction respecting a security) which is part of a series of transactions with or in conjunction with a person in a plan year, if the aggregate amount of such transactions exceeds 3 percent of the current value of the assets of the plan;
(iii) a transaction which is part of a series of transactions respecting one or more securities of the same issuer, if the aggregate amount of such transactions in the plan year exceeds 3 percent of the current value of the assets of the plan; or
(iv) a transaction with or in conjunction with a person respecting a security, if any other transaction with or in conjunction with such person in the plan year respecting a security is required to be reported by reason of clause (i).
(4) The Secretary may, by regulation, relieve any plan from filing a copy of a statement of assets and liabilities (or other information) described in paragraph (3)(G) if such statement and other information is filed with the Secretary by the bank or insurance carrier which maintains the common or collective trust or separate account.
(c) Information to be furnished by administrator
The administrator shall furnish as a part of a report under this section the following information:
(1) The number of employees covered by the plan.
(2) The name and address of each fiduciary.
(3) Except in the case of a person whose compensation is minimal (determined under regulations of the Secretary) and who performs solely ministerial duties (determined under such regulations), the name of each person (including but not limited to, any consultant, broker, trustee, accountant, insurance carrier, actuary, administrator, investment manager, or custodian who rendered services to the plan or who had transactions with the plan) who received directly or indirectly compensation from the plan during the preceding year for services rendered to the plan or its participants, the amount of such compensation, the nature of his services to the plan or its participants, his relationship to the employer of the employees covered by the plan, or the employee organization, and any other office, position, or employment he holds with any party in interest.
(4) An explanation of the reason for any change in appointment of trustee, accountant, insurance carrier, enrolled actuary, administrator, investment manager, or custodian.
(5) Such financial and actuarial information including but not limited to the material described in subsections (b) and (d) of this section as the Secretary may find necessary or appropriate.
(d) Actuarial statement
With respect to an employee pension benefit plan (other than (A) a profit sharing, savings, or other plan, which is an individual account plan, (B) a plan described in
(1) The date of the plan year, and the date of the actuarial valuation applicable to the plan year for which the report is filed.
(2) The date and amount of the contribution (or contributions) received by the plan for the plan year for which the report is filed and contributions for prior plan years not previously reported.
(3) The following information applicable to the plan year for which the report is filed: the normal costs or target normal costs, the accrued liabilities or funding target, an identification of benefits not included in the calculation; a statement of the other facts and actuarial assumptions and methods used to determine costs, and a justification for any change in actuarial assumptions or cost methods; and the minimum contribution required under
(4) The number of participants and beneficiaries, both retired and nonretired, covered by the plan.
(5) The current value of the assets accumulated in the plan, and the present value of the assets of the plan used by the actuary in any computation of the amount of contributions to the plan required under
(6) Information required in regulations of the Pension Benefit Guaranty Corporation with respect to:
(A) the current value of the assets of the plan,
(B) the present value of all nonforfeitable benefits for participants and beneficiaries receiving payments under the plan,
(C) the present value of all nonforfeitable benefits for all other participants and beneficiaries,
(D) the present value of all accrued benefits which are not nonforfeitable (including a separate accounting of such benefits which are benefit commitments, as defined in
(E) the actuarial assumptions and techniques used in determining the values described in subparagraphs (A) through (D).
(7) A certification of the contribution necessary to reduce the minimum required contribution determined under
(8) A statement by the enrolled actuary—
(A) that to the best of his knowledge the report is complete and accurate, and
(B) the applicable requirements of
(9) A copy of the opinion required by subsection (a)(4).
(10) A statement by the actuary which discloses—
(A) any event which the actuary has not taken into account, and
(B) any trend which, for purposes of the actuarial assumptions used, was not assumed to continue in the future,
but only if, to the best of the actuary's knowledge, such event or trend may require a material increase in plan costs or required contribution rates.
(11) If the current value of the assets of the plan is less than 70 percent of—
(A) in the case of a single-employer plan, the funding target (as defined in
(B) in the case of a multiemployer plan, the current liability (as defined in
the percentage which such value is of the amount described in subparagraph (A) or (B).
(12) A statement explaining the actuarial assumptions and methods used in projecting future retirements and forms of benefit distributions under the plan.
(13) Such other information regarding the plan as the Secretary may by regulation require.
(14) Such other information as may be necessary to fully and fairly disclose the actuarial position of the plan.
Such actuary shall make an actuarial valuation of the plan for every third plan year, unless he determines that a more frequent valuation is necessary to support his opinion under subsection (a)(4) of this section.
(e) Statement from insurance company, insurance service, or other similar organizations which sell or guarantee plan benefits
If some or all of the benefits under the plan are purchased from and guaranteed by an insurance company, insurance service, or other similar organization, a report under this section shall include a statement from such insurance company, service, or other similar organization covering the plan year and enumerating—
(1) the premium rate or subscription charge and the total premium or subscription charges paid to each such carrier, insurance service, or other similar organization and the approximate number of persons covered by each class of such benefits; and
(2) the total amount of premiums received, the approximate number of persons covered by each class of benefits, and the total claims paid by such company, service, or other organization; dividends or retroactive rate adjustments, commissions, and administrative service or other fees or other specific acquisition costs paid by such company, service, or other organization; any amounts held to provide benefits after retirement; the remainder of such premiums; and the names and addresses of the brokers, agents, or other persons to whom commissions or fees were paid, the amount paid to each, and for what purpose. If any such company, service, or other organization does not maintain separate experience records covering the specific groups it serves, the report shall include in lieu of the information required by the foregoing provisions of this paragraph (A) a statement as to the basis of its premium rate or subscription charge, the total amount of premiums or subscription charges received from the plan, and a copy of the financial report of the company, service, or other organization and (B) if such company, service, or organization incurs specific costs in connection with the acquisition or retention of any particular plan or plans, a detailed statement of such costs.
(f) Additional information with respect to defined benefit plans
(1) Liabilities under 2 or more plans
(A) In general
In any case in which any liabilities to participants or their beneficiaries under a defined benefit plan as of the end of a plan year consist (in whole or in part) of liabilities to such participants and beneficiaries under 2 or more pension plans as of immediately before such plan year, an annual report under this section for such plan year shall include the funded percentage of each of such 2 or more pension plans as of the last day of such plan year and the funded percentage of the plan with respect to which the annual report is filed as of the last day of such plan year.
(B) Funded percentage
For purposes of this paragraph, the term "funded percentage"—
(i) in the case of a single-employer plan, means the funding target attainment percentage, as defined in
(ii) in the case of a multiemployer plan, has the meaning given such term in
(2) Additional information for multiemployer plans
With respect to any defined benefit plan which is a multiemployer plan, an annual report under this section for a plan year shall include, in addition to the information required under paragraph (1), the following, as of the end of the plan year to which the report relates:
(A) The number of employers obligated to contribute to the plan.
(B) A list of the employers that contributed more than 5 percent of the total contributions to the plan during such plan year.
(C) The number of participants under the plan on whose behalf no contributions were made by an employer as an employer of the participant for such plan year and for each of the 2 preceding plan years.
(D) The ratios of—
(i) the number of participants under the plan on whose behalf no employer had an obligation to make an employer contribution during the plan year, to
(ii) the number of participants under the plan on whose behalf no employer had an obligation to make an employer contribution during each of the 2 preceding plan years.
(E) Whether the plan received an amortization extension under
(F) Whether the plan used the shortfall funding method (as such term is used in
(G) Whether the plan was in critical or endangered status under
(H) The number of employers that withdrew from the plan during the preceding plan year and the aggregate amount of withdrawal liability assessed, or estimated to be assessed, against such withdrawn employers.
(I) In the case of a multiemployer plan that has merged with another plan or to which assets and liabilities have been transferred, the actuarial valuation of the assets and liabilities of each affected plan during the year preceding the effective date of the merger or transfer, based upon the most recent data available as of the day before the first day of the plan year, or other valuation method performed under standards and procedures as the Secretary may prescribe by regulation.
(g) Additional information with respect to pooled employer and multiple employer plans
An annual report under this section for a plan year shall include—
(1) with respect to any plan to which
(2) with respect to a pooled employer plan, the identifying information for the person designated under the terms of the plan as the pooled plan provider.
(
Editorial Notes
Amendments
2019—Subsec. (a)(1)(B).
Subsec. (g).
2014—Subsec. (d)(8)(B).
Subsec. (g).
2008—Subsec. (d)(3).
Subsec. (d)(7).
2006—Subsec. (a)(1)(B).
Subsec. (d)(8)(B).
Subsec. (d)(11).
Subsec. (d)(12) to (14).
Subsec. (f).
1989—Subsec. (d)(11).
1987—Subsec. (d)(11) to (13).
1986—Subsec. (d)(6).
1980—Subsec. (d)(10) to (12).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Amendment by
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by section 108(a)(2), (3) of
Amendment by section 503(a)(1), (b) of
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Regulations
Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see
Report on Pooled Employer Plans
"(1) conduct a study on the pooled employer plan (as such term is defined in section 3(43) of the Employee Retirement Income Security Act of 1974 (
"(A) the legal name and number of pooled employer plans;
"(B) the number of participants in such plans;
"(C) the range of investment options provided in such plans;
"(D) the fees assessed in such plans;
"(E) the manner in which employers select and monitor such plans;
"(F) the disclosures provided to participants in such plans;
"(G) the number and nature of any enforcement actions by the Secretary of Labor on such plans;
"(H) the extent to which such plans have increased retirement savings coverage in the United States; and
"(I) any additional information as the Secretary determines is necessary; and
"(2) not later than 5 years after the date of enactment of this Act [Dec. 29, 2022], and every 5 years thereafter, submit to Congress and make available on a publicly accessible website of the Department of Labor, a report on the findings of the study under paragraph (1), including recommendations on how pooled employer plans can be improved, through legislation, to serve and protect retirement plan participants."
Applicability of Amendments by Subtitles A and B of Title I of Pub. L. 109–280
For special rules on applicability of amendments by subtitles A (§§101–108) and B (§§111–116) of title I of
Guidance by Secretary of Labor
"(A) identify and enumerate plan participants for whom there is no employer with an obligation to make an employer contribution under the plan; and
"(B) report such information under section 103(f)(2)(D) of the Employee Retirement Income Security Act of 1974 [
Transition Rules
Consolidation of Actuarial Reports
Secretary of the Treasury and Secretary of Labor to take such steps as may be necessary to assure coordination to the maximum extent feasible between the actuarial reports required by subsec. (d) of this section and
§1024. Filing with Secretary and furnishing information to participants and certain employers
(a) Filing of annual report with Secretary
(1) The administrator of any employee benefit plan subject to this part shall file with the Secretary the annual report for a plan year within 210 days after the close of such year (or within such time as may be required by regulations promulgated by the Secretary in order to reduce duplicative filing). The Secretary shall make copies of such annual reports available for inspection in the public document room of the Department of Labor.
(2)(A) With respect to annual reports required to be filed with the Secretary under this part, the Secretary may by regulation prescribe simplified annual reports for any pension plan that—
(i) covers fewer than 100 participants; or
(ii) is a plan described in
(B) Nothing contained in this paragraph shall preclude the Secretary from requiring any information or data from any such plan to which this part applies where he finds such data or information is necessary to carry out the purposes of this subchapter nor shall the Secretary be precluded from revoking provisions for simplified reports for any such plan if he finds it necessary to do so in order to carry out the objectives of this subchapter.
(3) The Secretary may by regulation exempt any welfare benefit plan from all or part of the reporting and disclosure requirements of this subchapter, or may provide for simplified reporting and disclosure if he finds that such requirements are inappropriate as applied to welfare benefit plans.
(4) The Secretary may reject any filing under this section—
(A) if he determines that such filing is incomplete for purposes of this part; or
(B) if he determines that there is any material qualification by an accountant or actuary contained in an opinion submitted pursuant to section 1023(a)(3)(A) or
(5) If the Secretary rejects a filing of a report under paragraph (4) and if a revised filing satisfactory to the Secretary is not submitted within 45 days after the Secretary makes his determination under paragraph (4) to reject the filing, and if the Secretary deems it in the best interest of the participants, he may take any one or more of the following actions—
(A) retain an independent qualified public accountant (as defined in
(B) retain an enrolled actuary (as defined in
(C) bring a civil action for such legal or equitable relief as may be appropriate to enforce the provisions of this part, or
(D) take any other action authorized by this subchapter.
The administrator shall permit such accountant or actuary to inspect whatever books and records of the plan are necessary for such audit. The plan shall be liable to the Secretary for the expenses for such audit or report, and the Secretary may bring an action against the plan in any court of competent jurisdiction to recover such expenses.
(6) The administrator of any employee benefit plan subject to this part shall furnish to the Secretary, upon request, any documents relating to the employee benefit plan, including but not limited to, the latest summary plan description (including any summaries of plan changes not contained in the summary plan description), and the bargaining agreement, trust agreement, contract, or other instrument under which the plan is established or operated.
(b) Publication of summary plan description and annual report to participants and beneficiaries of plan
Publication of the summary plan descriptions and annual reports shall be made to participants and beneficiaries of the particular plan as follows:
(1) The administrator shall furnish to each participant, and each beneficiary receiving benefits under the plan, a copy of the summary plan description, and all modifications and changes referred to in
(A) within 90 days after he becomes a participant, or (in the case of a beneficiary) within 90 days after he first receives benefits, or
(B) if later, within 120 days after the plan becomes subject to this part.
The administrator shall furnish to each participant, and each beneficiary receiving benefits under the plan, every fifth year after the plan becomes subject to this part an updated summary plan description described in
(2) The administrator shall make copies of the latest updated summary plan description and the latest annual report and the bargaining agreement, trust agreement, contract, or other instruments under which the plan was established or is operated available for examination by any plan participant or beneficiary in the principal office of the administrator and in such other places as may be necessary to make available all pertinent information to all participants (including such places as the Secretary may prescribe by regulations).
(3) Within 210 days after the close of the fiscal year of the plan, the administrator (other than an administrator of a defined benefit plan to which the requirements of
(4) The administrator shall, upon written request of any participant or beneficiary, furnish a copy of the latest updated summary,2 plan description, and the latest annual report, any terminal report, the bargaining agreement, trust agreement, contract, or other instruments under which the plan is established or operated. The administrator may make a reasonable charge to cover the cost of furnishing such complete copies. The Secretary may by regulation prescribe the maximum amount which will constitute a reasonable charge under the preceding sentence.
(5) Identification and basic plan information and actuarial information included in the annual report for any plan year shall be filed with the Secretary in an electronic format which accommodates display on the Internet, in accordance with regulations which shall be prescribed by the Secretary. The Secretary shall provide for display of such information included in the annual report, within 90 days after the date of the filing of the annual report, on an Internet website maintained by the Secretary and other appropriate media. Such information shall also be displayed on any Intranet website maintained by the plan sponsor (or by the plan administrator on behalf of the plan sponsor) for the purpose of communicating with employees and not the public, in accordance with regulations which shall be prescribed by the Secretary.
(c) Statement of rights
The Secretary may by regulation require that the administrator of any employee benefit plan furnish to each participant and to each beneficiary receiving benefits under the plan a statement of the rights of participants and beneficiaries under this subchapter.
(d) Furnishing summary plan information to employers and employee representatives of multiemployer plans
(1) In general
With respect to a multiemployer plan subject to this section, within 30 days after the due date under subsection (a)(1) for the filing of the annual report for the fiscal year of the plan, the administrators shall furnish to each employee organization and to each employer with an obligation to contribute to the plan a report that contains—
(A) a description of the contribution schedules and benefit formulas under the plan, and any modification to such schedules and formulas, during such plan year;
(B) the number of employers obligated to contribute to the plan;
(C) a list of the employers that contributed more than 5 percent of the total contributions to the plan during such plan year;
(D) the number of participants under the plan on whose behalf no contributions were made by an employer as an employer of the participant for such plan year and for each of the 2 preceding plan years;
(E) whether the plan was in critical or endangered status under
(i) a list of the actions taken by the plan to improve its funding status; and
(ii) a statement describing how a person may obtain a copy of the plan's funding improvement or rehabilitation plan, as applicable, adopted under
(F) the number of employers that withdrew from the plan during the preceding plan year and the aggregate amount of withdrawal liability assessed, or estimated to be assessed, against such withdrawn employers, as reported on the annual report for the plan year to which the report under this subsection relates;
(G) in the case of a multiemployer plan that has merged with another plan or to which assets and liabilities have been transferred, the actuarial valuation of the assets and liabilities of each affected plan during the year preceding the effective date of the merger or transfer, based upon the most recent data available as of the day before the first day of the plan year, or other valuation method performed under standards and procedures as the Secretary may prescribe by regulation;
(H) a description as to whether the plan—
(i) sought or received an amortization extension under
(ii) used the shortfall funding method (as such term is used in
(I) notification of the right under this section of the recipient to a copy of the annual report filed with the Secretary under subsection (a), summary plan description, summary of any material modification of the plan, upon written request, but that—
(i) in no case shall a recipient be entitled to receive more than one copy of any such document described during any one 12-month period; and
(ii) the administrator may make a reasonable charge to cover copying, mailing, and other costs of furnishing copies of information pursuant to this subparagraph.
(2) Effect of subsection
Nothing in this subsection waives any other provision under this subchapter requiring plan administrators to provide, upon request, information to employers that have an obligation to contribute under the plan.
(e) Cross references
For regulations respecting coordination of reports to the Secretaries of Labor and the Treasury, see
(
Editorial Notes
Amendments
2019—Subsec. (a)(2)(A).
2008—Subsec. (b)(3).
Subsec. (d)(1)(E)(ii).
2006—
Subsec. (b)(3).
Subsec. (b)(5).
Subsecs. (d), (e).
1997—Subsec. (a)(1).
Subsec. (a)(6).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(4).
1996—Subsec. (b)(1).
1989—Subsec. (a)(5)(B).
Subsec. (b)(1).
1987—Subsec. (b)(3).
1986—Subsec. (a)(2)(A).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Amendment by
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by section 503(c)(1), (d) of
Effective Date of 1996 Amendments
Amendment by
Amendment by
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Regulations
Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see
Model Notices and Forms
For provisions requiring the Secretary of Labor to publish a model form for providing the statements, schedules, and other material required to be provided under subsec. (d) of this section, see section 503(e) of
1 So in original. Probably should be "apply)".
2 So in original. Comma probably should not appear.
§1025. Reporting of participant's benefit rights
(a) Requirements to provide pension benefit statements
(1) Requirements
(A) Individual account plan
The administrator of an individual account plan (other than a one-participant retirement plan described in
(i) at least once each calendar quarter to a participant or beneficiary who has the right to direct the investment of assets in his or her account under the plan,
(ii) at least once each calendar year to a participant or beneficiary who has his or her own account under the plan but does not have the right to direct the investment of assets in that account, and
(iii) upon written request to a plan beneficiary not described in clause (i) or (ii).
(B) Defined benefit plan
The administrator of a defined benefit plan (other than a one-participant retirement plan described in
(i) at least once every 3 years to each participant with a nonforfeitable accrued benefit and who is employed by the employer maintaining the plan at the time the statement is to be furnished, and
(ii) to a participant or beneficiary of the plan upon written request.
Information furnished under clause (i) to a participant may be based on reasonable estimates determined under regulations prescribed by the Secretary, in consultation with the Pension Benefit Guaranty Corporation.
(2) Statements
(A) In general
A pension benefit statement under paragraph (1)—
(i) shall indicate, on the basis of the latest available information—
(I) the total benefits accrued, and
(II) the nonforfeitable pension benefits, if any, which have accrued, or the earliest date on which benefits will become nonforfeitable,
(ii) shall include an explanation of any permitted disparity under
(iii) shall be written in a manner calculated to be understood by the average plan participant, and
(iv) may be delivered in written, electronic, or other appropriate form to the extent such form is reasonably accessible to the participant or beneficiary.
(B) Additional information
In the case of an individual account plan, any pension benefit statement under clause (i) or (ii) of paragraph (1)(A) shall include—
(i) the value of each investment to which assets in the individual account have been allocated, determined as of the most recent valuation date under the plan, including the value of any assets held in the form of employer securities, without regard to whether such securities were contributed by the plan sponsor or acquired at the direction of the plan or of the participant or beneficiary,
(ii) in the case of a pension benefit statement under paragraph (1)(A)(i)—
(I) an explanation of any limitations or restrictions on any right of the participant or beneficiary under the plan to direct an investment,
(II) an explanation, written in a manner calculated to be understood by the average plan participant, of the importance, for the long-term retirement security of participants and beneficiaries, of a well-balanced and diversified investment portfolio, including a statement of the risk that holding more than 20 percent of a portfolio in the security of one entity (such as employer securities) may not be adequately diversified, and
(III) a notice directing the participant or beneficiary to the Internet website of the Department of Labor for sources of information on individual investing and diversification, and
(iii) the lifetime income disclosure described in subparagraph (D)(i).
In the case of pension benefit statements described in clause (i) of paragraph (1)(A), a lifetime income disclosure under clause (iii) of this subparagraph shall be required to be included in only one pension benefit statement during any one 12-month period.
(C) Alternative notice
The requirements of subparagraph (A)(i)(II) are met if, at least annually and in accordance with requirements of the Secretary, the plan—
(i) updates the information described in such paragraph which is provided in the pension benefit statement, or
(ii) provides in a separate statement such information as is necessary to enable a participant or beneficiary to determine their nonforfeitable vested benefits.
(D) Lifetime income disclosure
(i) In general
(I) Disclosure
A lifetime income disclosure shall set forth the lifetime income stream equivalent of the total benefits accrued with respect to the participant or beneficiary.
(II) Lifetime income stream equivalent of the total benefits accrued
For purposes of this subparagraph, the term "lifetime income stream equivalent of the total benefits accrued" means the amount of monthly payments the participant or beneficiary would receive if the total accrued benefits of such participant or beneficiary were used to provide lifetime income streams described in subclause (III), based on assumptions specified in rules prescribed by the Secretary.
(III) Lifetime income streams
The lifetime income streams described in this subclause are a qualified joint and survivor annuity (as defined in
(ii) Model disclosure
Not later than 1 year after December 20, 2019, the Secretary shall issue a model lifetime income disclosure, written in a manner so as to be understood by the average plan participant, which—
(I) explains that the lifetime income stream equivalent is only provided as an illustration;
(II) explains that the actual payments under the lifetime income stream described in clause (i)(III) which may be purchased with the total benefits accrued will depend on numerous factors and may vary substantially from the lifetime income stream equivalent in the disclosures;
(III) explains the assumptions upon which the lifetime income stream equivalent was determined; and
(IV) provides such other similar explanations as the Secretary considers appropriate.
(iii) Assumptions and rules
Not later than 1 year after December 20, 2019, the Secretary shall—
(I) prescribe assumptions which administrators of individual account plans may use in converting total accrued benefits into lifetime income stream equivalents for purposes of this subparagraph; and
(II) issue interim final rules under clause (i).
In prescribing assumptions under subclause (I), the Secretary may prescribe a single set of specific assumptions (in which case the Secretary may issue tables or factors which facilitate such conversions), or ranges of permissible assumptions. To the extent that an accrued benefit is or may be invested in a lifetime income stream described in clause (i)(III), the assumptions prescribed under subclause (I) shall, to the extent appropriate, permit administrators of individual account plans to use the amounts payable under such lifetime income stream as a lifetime income stream equivalent.
(iv) Limitation on liability
No plan fiduciary, plan sponsor, or other person shall have any liability under this subchapter solely by reason of the provision of lifetime income stream equivalents which are derived in accordance with the assumptions and rules described in clause (iii) and which include the explanations contained in the model lifetime income disclosure described in clause (ii). This clause shall apply without regard to whether the provision of such lifetime income stream equivalent is required by subparagraph (B)(iii).
(v) Effective date
The requirement in subparagraph (B)(iii) shall apply to pension benefit statements furnished more than 12 months after the latest of the issuance by the Secretary of—
(I) interim final rules under clause (i);
(II) the model disclosure under clause (ii); or
(III) the assumptions under clause (iii).
(3) Defined benefit plans
(A) Alternative notice
In the case of a defined benefit plan, the requirements of paragraph (1)(B)(i) shall be treated as met with respect to a participant if at least once each year the administrator provides to the participant notice of the availability of the pension benefit statement and the ways in which the participant may obtain such statement. Such notice may be delivered in written, electronic, or other appropriate form to the extent such form is reasonably accessible to the participant.
(B) Years in which no benefits accrue
The Secretary may provide that years in which no employee or former employee benefits (within the meaning of
(b) Limitation on number of statements
In no case shall a participant or beneficiary of a plan be entitled to more than 1 statement described in subparagraph (A)(iii) or (B)(ii) of subsection (a)(1), whichever is applicable, in any 12-month period.
(c) Individual statement furnished by administrator to participants setting forth information in administrator's Internal Revenue registration statement and notification of forfeitable benefits
Each administrator required to register under
(
Amendment of Subsection (a)(2)
(1) in subparagraph (A)(iv), by inserting "subject to subparagraph (E)," before "may be delivered"; and
(2) by adding at the end the following:
"(E) Provision of paper statements
"With respect to at least 1 pension benefit statement furnished for a calendar year with respect to an individual account plan under paragraph (1)(A), and with respect to at least 1 pension benefit statement furnished every 3 calendar years with respect to a defined benefit plan under paragraph (1)(B), such statement shall be furnished on paper in written form except—
"(i) in the case of a plan that furnishes such statement in accordance with section 2520.104b-1(c) of title 29, Code of Federal Regulations; or
"(ii) in the case of a plan that permits a participant or beneficiary to request that the statements referred to in the matter preceding clause (i) be furnished by electronic delivery, if the participant or beneficiary requests that such statements be delivered electronically and the statements are so delivered."
See 2022 Amendment notes below.
Editorial Notes
Amendments
2022—Subsec. (a)(2)(A)(iv).
Subsec. (a)(2)(E).
2019—Subsec. (a)(2)(B).
Subsec. (a)(2)(D).
2006—Subsec. (a).
"(1) the total benefits accrued, and
"(2) the nonforfeitable pension benefits, if any, which have accrued, or the earliest date on which benefits will become nonforfeitable."
Subsec. (b).
Subsec. (d).
1989—Subsec. (b).
Subsec. (c).
1984—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Effective Date of 2006 Amendment
"(1)
"(2)
"(A) the later of—
"(i) December 31, 2007, or
"(ii) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof after such date of enactment), or
"(B) December 31, 2008."
Effective Date of 1989 Amendment
Amendment by section 7891(a)(1) of
Amendment by section 7894(b)(5) of
Effective Date of 1984 Amendment
Amendment by
Implementation of 2022 Amendment
"(1)
"(2)
"(A) a participant or beneficiary under such a plan is permitted the opportunity to request that any disclosure required to be delivered on paper under applicable guidance by the Department of Labor shall be furnished by electronic delivery;
"(B) each paper statement furnished under such a plan pursuant to the amendment shall include—
"(i) an explanation of how to request that all such statements, and any other document required to be disclosed under title I of the Employee Retirement Income Security Act of 1974, be furnished by electronic delivery; and
"(ii) contact information for the plan sponsor, including a telephone number;
"(C) the plan may not charge any fee to a participant or beneficiary for the delivery of any paper statements;
"(D) each document required to be disclosed that is furnished by electronic delivery under such a plan shall include an explanation of how to request that all such documents be furnished on paper in written form; and
"(E) a plan is permitted to furnish a duplicate electronic statement in any case in which the plan furnishes a paper pension benefit statement."
Regulations
Secretary of Labor authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations by him, see
Model Statements
"(1)
"(2)
§1026. Reports made public information
(a) Except as provided in subsection (b), the contents of the annual reports, statements, and other documents filed with the Secretary pursuant to this part shall be public information and the Secretary shall make any such information and data available for inspection in the public document room of the Department of Labor. The Secretary may use the information and data for statistical and research purposes, and compile and publish such studies, analyses, reports, and surveys based thereon as he may deem appropriate.
(b) Information described in
(
Editorial Notes
References in Text
The Social Security Act, referred to in subsec. (b), is act Aug. 14, 1935, ch. 531,
Amendments
1997—Subsec. (a).
1989—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1989 Amendment
Amendment by
§1027. Retention of records
Every person subject to a requirement to file any report (including the documents described in subparagraphs (E) through (I) of
(
Editorial Notes
Amendments
2014—
1997—
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
§1028. Reliance on administrative interpretations
In any criminal proceeding under
(
Editorial Notes
Amendments
1997—
1989—
Statutory Notes and Related Subsidiaries
Effective Date of 1989 Amendment
Amendment by
Regulations
Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see
§1029. Forms
(a) Information required on forms
Except as provided in subsection (b) of this section, the Secretary may require that any information required under this subchapter to be submitted to him, including but not limited to the information required to be filed by the administrator pursuant to section 1023(b)(3) and (c) of this title, must be submitted on such forms as he may prescribe.
(b) Information not required on forms
The financial statement and opinion required to be prepared by an independent qualified public accountant pursuant to
(c) Format and content of summary plan description, annual report, etc., required to be furnished to plan participants and beneficiaries
The Secretary may prescribe the format and content of the summary plan description, the summary of the annual report described in
(
Statutory Notes and Related Subsidiaries
Regulations
Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see
§1030. Alternative methods of compliance
(a) The Secretary on his own motion or after having received the petition of an administrator may prescribe an alternative method for satisfying any requirement of this part with respect to any pension plan, or class of pension plans (including pension-linked emergency savings account features within a pension plan), subject to such requirement if he determines—
(1) that the use of such alternative method is consistent with the purposes of this subchapter and that it provides adequate disclosure to the participants and beneficiaries in the plan, and adequate reporting to the Secretary,
(2) that the application of such requirement of this part would—
(A) increase the costs to the plan, or
(B) impose unreasonable administrative burdens with respect to the operation of the plan, having regard to the particular characteristics of the plan or the type of plan involved; and
(3) that the application of this part would be adverse to the interests of plan participants in the aggregate.
(b) An alternative method may be prescribed under subsection (a) by regulation or otherwise. If an alternative method is prescribed other than by regulation, the Secretary shall provide notice and an opportunity for interested persons to present their views, and shall publish in the Federal Register the provisions of such alternative method.
(
Editorial Notes
Amendments
2022—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Regulations
Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see
§1030a. Eliminating unnecessary plan requirements related to unenrolled participants
(a) In general
Notwithstanding any other provision of this subchapter, with respect to any individual account plan, no disclosure, notice, or other plan document (other than the notices and documents described in paragraphs (1) and (2)) shall be required to be furnished under this subchapter to any unenrolled participant if the unenrolled participant is furnished—
(1) an annual reminder notice of such participant's eligibility to participate in such plan and any applicable election deadlines under the plan; and
(2) any document requested by such participant that the participant would be entitled to receive notwithstanding this section.
(b) Unenrolled participant
For purposes of this section, the term "unenrolled participant" means an employee who—
(1) is eligible to participate in an individual account plan;
(2) has been furnished—
(A) the summary plan description pursuant to
(B) any other notices related to eligibility under the plan required to be furnished under this subchapter, or the Internal Revenue Code of 1986, in connection with such participant's initial eligibility to participate in such plan;
(3) is not participating in such plan; and
(4) satisfies such other criteria as the Secretary of Labor may determine appropriate, as prescribed in guidance issued in consultation with the Secretary of Treasury.
For purposes of this section, any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility.
(c) Annual reminder notice
For purposes of this section, the term "annual reminder notice" means a notice provided in accordance with section 2520.104b–1 of title 29, Code of Federal Regulations (or any successor regulation), which—
(1) is furnished in connection with the annual open season election period with respect to the plan or, if there is no such period, is furnished within a reasonable period prior to the beginning of each plan year;
(2) notifies the unenrolled participant of—
(A) the unenrolled participant's eligibility to participate in the plan; and
(B) the key benefits and rights under the plan, with a focus on employer contributions and vesting provisions; and
(3) provides such information in a prominent manner calculated to be understood by the average participant.
(
Editorial Notes
References in Text
The Internal Revenue Code of 1986, referred to in subsec. (b)(2)(B), is classified generally to Title 26, Internal Revenue Code.
Prior Provisions
A prior section 111 of
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to plan years beginning after Dec. 31, 2022, see section 320(c) of
§1031. Repeal and effective date
(a)(1) The Welfare and Pension Plans Disclosure Act [
(2)(A)
(B)(i) Section 1027 of such title 18 is amended by striking out "Welfare and Pension Plans Disclosure Act" and inserting in lieu thereof "title I of the Employee Retirement Income Security Act of 1974", and by striking out "Act" each place it appears and inserting in lieu thereof "title".
(ii) The heading for such section is amended by striking out "
(iii) The table of sections of
(C) Section 1954 of such title 18 is amended by striking out "any plan subject to the provisions of the Welfare and Pension Plans Disclosure Act as amended" and inserting in lieu thereof "any employee welfare benefit plan or employee pension benefit plan, respectively, subject to any provision of title I of the Employee Retirement Income Security Act of 1974"; and by striking out "sections 3(3) and 5(b)(1) and (2) of the Welfare and Pension Plans Disclosure Act, as amended" and inserting in lieu thereof "sections 3(4) and (3)(16) 1 of the Employee Retirement Income Security Act of 1974".
(D) Section 211 of the Labor-Management Reporting and Disclosure Act of 1959 (
(b)(1) Except as provided in paragraph (2), this part (including the amendments and repeals made by subsection (a)) shall take effect on January 1, 1975.
(2) In the case of a plan which has a plan year which begins before January 1, 1975, and ends after December 31, 1974, the Secretary may postpone by regulation the effective date of the repeal of any provision of the Welfare and Pension Plans Disclosure Act (and of any amendment made by subsection (a)(2)) and the effective date of any provision of this part, until the beginning of the first plan year of such plan which begins after January 1, 1975.
(c) The provisions of this subchapter authorizing the Secretary to promulgate regulations shall take effect on September 2, 1974.
(d) Subsections (b) and (c) shall not apply with respect to amendments made to this part in provisions enacted after September 2, 1974.
(
Editorial Notes
References in Text
The Welfare and Pension Plans Disclosure Act, referred to in subsecs. (a) and (b)(2), is
Title I of the Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(2)(A) to (C), means title I of
The Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(2)(B)(ii), (iii), (D), is
Amendments
1989—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 1989 Amendment
Amendment by
1 So in original. Probably should be "3(16)".
§1032. Notice and disclosure requirements with respect to lump sums
(a) In general
A plan administrator of a pension plan that amends the plan to provide a period of time during which a participant or beneficiary may elect to receive a lump sum, instead of future monthly payments, shall furnish notice—
(1) to each participant or beneficiary offered such lump sum amount, in the manner in which the participant and beneficiary receives the lump sum offer from the plan sponsor, not later than 90 days prior to the first day on which the participant or beneficiary may make an election with respect to such lump sum; and
(2) to the Secretary and the Pension Benefit Guaranty Corporation, not later than 30 days prior to the first day on which participants and beneficiaries may make an election with respect to such lump sum.
(b) Notice to participants and beneficiaries
(1) Content
The notice required under subsection (a)(1) shall include the following:
(A) Available benefit options, including the estimated monthly benefit that the participant or beneficiary would receive at normal retirement age, whether there is a subsidized early retirement option or qualified joint and survivor annuity that is fully subsidized (in accordance with
(B) An explanation of how the lump sum was calculated, including the interest rate, mortality assumptions, and whether any additional plan benefits were included in the lump sum, such as early retirement subsidies.
(C) In a manner consistent with the manner in which a written explanation is required to be given under 417(a)(3) of title 26, the relative value of the lump sum option for a terminated vested participant compared to the value of—
(i) the single life annuity, (or other standard form of benefit); and
(ii) the qualified joint and survivor annuity (as defined in
(D) A statement that—
(i) a commercial annuity comparable to the annuity available from the plan may cost more than the amount of the lump sum amount, and
(ii) it may be advisable to consult an advisor regarding this point if the participant or beneficiary is considering purchasing a commercial annuity.
(E) The potential ramifications of accepting the lump sum, including longevity risks, loss of protections guaranteed by the Pension Benefit Guaranty Corporation (with an explanation of the monthly benefit amount that would be protected by the Pension Benefit Guaranty Corporation if the plan is terminated with insufficient assets to pay benefits), loss of protection from creditors, loss of spousal protections, and other protections under this Act that would be lost.
(F) General tax rules related to accepting a lump sum, including rollover options and early distribution penalties with a disclaimer that the plan does not provide tax, legal, or accounting advice, and a suggestion that participants and beneficiaries consult with their own tax, legal, and accounting advisors before determining whether to accept the offer.
(G) How to accept or reject the offer, the deadline for response, and whether a spouse is required to consent to the election.
(H) Contact information for the point of contact at the plan administrator for participants and beneficiaries to get more information or ask questions about the options.
(2) Plain language
The notice under this subsection shall be written in a manner calculated to be understood by the average plan participant.
(3) Model notice
The Secretary shall issue a model notice for purposes of the notice under subsection (a)(1), including for information required under subparagraphs (C) through (F) of paragraph (1).
(c) Notice to the Secretary and Pension Benefit Guaranty Corporation
The notice required under subsection (a)(2) shall include the following:
(1) The total number of participants and beneficiaries eligible for such lump sum option.
(2) The length of the limited period during which the lump sum is offered.
(3) An explanation of how the lump sum was calculated, including the interest rate, mortality assumptions, and whether any additional plan benefits were included in the lump sum, such as early retirement subsidies.
(4) A sample of the notice provided to participants and beneficiaries under subsection (a)(1), if otherwise required.
(d) Post-offer report to the Secretary and Pension Benefit Guaranty Corporation
Not later than 90 days after the conclusion of the limited period during which participants and beneficiaries in a plan may accept a plan's offer of a lump sum, a plan sponsor shall submit a report to the Secretary and the Director of the Pension Benefit Guaranty Corporation that includes the number of participants and beneficiaries who accepted the lump sum offer and such other information as the Secretary may require.
(e) Public availability
The Secretary shall make the information provided in the notice to the Secretary required under subsection (a)(2) and in the post-offer reports submitted under subsection (d) publicly available in a form that protects the confidentiality of the information provided.
(f) Biennial report
Not later than the last day of the second calendar year after the calendar year including the applicability date of the final rules under section 342(e) of the SECURE 2.0 Act of 2022, and every 2 years thereafter, so long as the Secretary has received notices and post-offer reports under subsections (c) and (d) of this section, the Secretary shall submit to Congress a report that summarizes such notices and post-offer reports during the applicable reporting period. The applicable reporting period begins on the first day of the second calendar year preceding the calendar year that the report is submitted to Congress and ends on the last day of the calendar year preceding the calendar year the report is due.
(
Editorial Notes
References in Text
Section 342(e) of the SECURE 2.0 Act of 2022, referred to in subsec. (f), is section 342(e) of div. T of
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Regulations
1 So in original. A closing parenthesis probably should precede the comma.