ERISA Reporting and Disclosure Vocabulary

A set of vocabulary terms based on ERISA Title I reporting and disclosure requirements for retirement plans.

Plans subject to ERISA Title I disclosure

Most tax-qualified plans regardless of the number of participants involved.

Summary Plan Description (SPD)

Describes the plan and must be given to employees, detailing their rights and obligations.

Summary of Material Modification (SMM)

Provided to employees following any amendment.

Summary Annual Report (SAR)

Given annually to employees, shows financial status of the plan.

Form 5500

Annual report filed with the DOL for all retirement plans.

PPA Form 5500 requirements

Must be filed electronically, available over the internet from the DOL, and displayed on the company’s intranet.

SPD timeliness for a new participant

Within $90$ days of becoming a participant.

SPD timeliness for new plans

Within $120$ days.

SPD update frequency

At least every $10$ years; every $5$ years if there have been any material changes.

Mandated writing style for an SPD

Written in a manner calculated to be understood by average participants.

Annual financial report audit requirements

Annually if there are over $100$ participants.

Plan document request timeframe

Participants can receive a copy within $30$ days of request.

Retirement plan personal benefits statements content

Must include info on right to direct investments; importance of diversification; caution on risk of more than $20\%$ in company stock.

Fee disclosure requirements

One from service providers to plan sponsor; one from plan sponsors to participants about plan administrative expenses & investment fees/performance.

Claim denial procedures

Written statement giving reasons for denial within $90$ days and description of appeal procedure.

Joint and survivor notifications

$9$ months prior to earliest retirement date.

Pre-retirement survivor benefits notification

Between age $32$ to $35$.

Rollover notification

A notice explaining rollover and direct transfer rules, tax withholding requirements, and how taxes can be reduced or deferred.

Willful violation penalty (ERISA)

$5,000$ fine and/or $1$ year in prison, up to $100,000$ fine for corporation.

Governmental guidelines for electronic media (Reporting & Disclosure)

Reasonably calculated to ensure actual receipt; paper copy must be provided upon request.

IRS conditions for electronic media functions

Reasonably accessible to participant and as understandable as the paper version.

DC plan benefit statement (member-directed)

Distributed quarterly.

DC plan benefit statement (non-directed)

Distributed yearly.

DB plan benefit statement (active, vested participant)

Every $3$ years or an annual notice about availability/obtaining this.