29 U.S.C. § 1021 : US Code - Section 1021: Duty of disclosure and reporting

Search 29 U.S.C. § 1021 : US Code - Section 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 section 1024(b) of this title to each
participant covered under the plan and to each beneficiary who is
receiving benefits under the plan -
(1) a summary plan description described in section 1022(a)(1)
(!1) of this title; and
(2) the information described in 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 section 1024(a) of
this title, file with the Secretary -
(1) the annual report containing the information required by
section 1023 of this title; and
(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 section 1082
of this title to a plan before the 60th day following the due
date for such installment or other payment, the employer shall
notify each participant and beneficiary (including an alternate
payee as defined in section 1056(d)(3)(K) of this title) of such
plan of such failure. Such notice shall be made at such time and
in such manner as the Secretary may prescribe.
(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 section 1083 of this title with
respect to the plan year to which the required installment
relates, except that if the waiver request is denied, notice
under paragraph (1) shall be provided within 60 days after the
date of such denial.
(3) Definitions
For purposes of this subsection, the terms "required
installment" and "due date" have the same meanings given such
terms by section 1082(e) of this title.
(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, 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 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, 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 section 420 of title 26 (as in effect on
October 22, 2004) shall have the same meaning as when used in
such section.
(f) Multiemployer defined benefit plan funding notices
(1) In general
The administrator of a defined benefit plan which is a
multiemployer plan shall for each plan year provide a plan
funding notice to each plan participant and beneficiary, to each
labor organization representing such participants or
beneficiaries, to each employer that has an obligation to
contribute under the plan, and to the Pension Benefit Guaranty
Corporation.
(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) a statement as to whether the plan's funded current
liability percentage (as defined in section 1082(d)(8)(B) of
this title) for the plan year to which the notice relates is
at least 100 percent (and, if not, the actual percentage);
(ii) a statement of the value of the plan's assets, the
amount of benefit payments, and the ratio of the assets to
the payments for the plan year to which the notice relates;
(iii) a summary of the rules governing insolvent
multiemployer plans, including the limitations on benefit
payments and any potential benefit reductions and suspensions
(and the potential effects of such limitations, reductions,
and suspensions on the plan); and
(iv) 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.
(C) Other information
Each notice under paragraph (1) shall include any additional
information which the plan administrator elects to include to
the extent not inconsistent with regulations prescribed by the
Secretary.
(3) Time for providing notice
Any notice under paragraph (1) shall be provided no later than
two months after the deadline (including extensions) for filing
the annual report for the plan year to which the notice relates.
(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 may, by regulation, require multiple employer
welfare arrangements providing benefits consisting of medical care
(within the meaning of section 1191b(a)(2) of this title) which are
not group health plans to report, not more frequently than
annually, in such form and such manner as the Secretary may require
for the purpose of determining the extent to which the requirements
of part 7 are being carried out in connection with such benefits.
(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 section 408(p) of
title 26.
(2) Summary description
The trustee of any simple retirement account established
pursuant to a qualified salary reduction arrangement under
section 408(p) of title 26 shall provide to the employer
maintaining the arrangement each year a description containing
the following information:
(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 section 408(p)(5)(C) of
title 26 may be made of the employee's opportunity to make such
election. Such notice shall include a copy of the description
described in paragraph (2).
(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 section 1104(a)(1)
of this title, and a fiduciary of the plan reasonably so
determines in writing, or
(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 section 78c(a)(47) of title
15),
(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
section 1056(d)(3)(K) of this title), or any other
beneficiary pursuant to a qualified domestic relations order
(as defined in section 1056(d)(3)(B)(i) of this title).
(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 section
1002(34) of this title, except that such term shall not include
a one-participant retirement plan.
(B) One-participant retirement plan
For purposes of subparagraph (A), the term "one-participant
retirement plan" means a retirement plan that -
(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 section 1361(a) of
title 26)),
(ii) meets the minimum coverage requirements of section
410(b) of title 26 (as in effect on July 30, 2002) without
being combined with any other plan of the business that
covers the employees of the business,
(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
(v) does not cover a business that leases employees.
(j) Cross reference
For regulations relating to coordination of reports to the
Secretaries of Labor and the Treasury, see section 1204 of this
title.