29 Cfr 2520

SUBCHAPTER C—REPORTING AND DISCLOSURE UNDER THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974

PART 2520—RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE
Subpart A—General Reporting and
Disclosure Requirements
Sec.
2520.101–1 Duty of reporting and disclosure.
2520.101–2 Filing by multiple employer welfare arrangements and certain other related entities.
2520.101–3 Notice of blackout periods under
individual account plans.
2520.101–4 [Reserved]
2520.101–5 Annual funding notice for defined
benefit pension plans.
2520.101–6 Multiemployer pension plan information made available on request.

Subpart B—Contents of Plan Descriptions
and Summary Plan Descriptions
2520.102–1 [Reserved]
2520.102–2 Style and format of summary
plan description.
2520.102–3 Contents of summary plan description.
2520.102–4 Option for different summary
plan descriptions.

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Subpart C—Annual Report Requirements
2520.103–1 Contents of the annual report.
2520.103–2 Contents of the annual report for
a group insurance arrangement.
2520.103–3 Exemption from certain annual
reporting requirements for assets held in
a common or collective trust.
2520.103–4 Exemption from certain annual
reporting requirements for assets held in
an insurance company pooled separate
account.
2520.103–5 Transmittal and certification of
information to plan administrator for
annual reporting purposes.
2520.103–6 Definition of reportable transaction for Annual Return/Report.
2520.103–8 Limitation on scope of accountant’s examination.
2520.103–9 Direct filing for bank or insurance carrier trusts and accounts.
2520.103–10 Annual report financial schedules.
2520.103–11 Assets held for investment purposes.
2520.103–12 Limited exemption and alternative method of compliance for annual

reporting of investments in certain entities.
2520.103–13 Special terminal report for abandoned plans.

Subpart D—Provisions Applicable to Both
Reporting and Disclosure Requirements
2520.104–1 General.
2520.104–2—2520.104–3 [Reserved]
2520.104–4 Alternative method of compliance
for certain successor pension plans.
2520.104–5—2520.104–6 [Reserved]
2520.104–20 Limited exemption for certain
small welfare plans.
2520.104–21 Limited exemption for certain
group insurance arrangements.
2520.104–22 Exemption from reporting and
disclosure requirements for apprenticeship and training plans.
2520.104–23 Alternative method of compliance for pension plans for certain selected employees.
2520.104–24 Exemption for welfare plans for
certain selected employees.
2520.104–25 Exemption from reporting and
disclosure for day care centers.
2520.104–26 Limited exemption for certain
unfunded dues financed welfare plans
maintained by employee organizations.
2520.104–27 Alternative method of compliance for certain unfunded dues financed
pension plans maintained by employee
organizations.
2520.104–28 [Reserved]
2520.104–41 Simplified annual reporting requirements for plans with fewer than 100
participants.
2520.104–42 Waiver of certain actuarial information in the annual report.
2520.104–43 Exemption from annual reporting requirement for certain group insurance arrangements.
2520.104–44 Limited exemption and alternative method of compliance for annual
reporting by unfunded plans and by certain insured plans.
2520.104–45 [Reserved]
2520.104–46 Waiver of examination and report of an independent qualified public
accountant for employee benefit plans
with fewer than 100 participants.
2520.104–47 Limited exemption and alternative method of compliance for filing of
insurance company financial reports.
2520.104–48 Alternative method of compliance for model simplified employee pensions—IRS Form 5305–SEP.
2520.104–49 Alternative method of compliance for certain simplified employee pensions.

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Employee Benefits Security Admin., Labor
2520.104–50 Short plan years, deferral of accountant’s examination and report.

Subpart E—Reporting Requirements
2520.104a–1 Filing with the Secretary of
Labor.
2520.104a–2 Electronic filing of annual reports.
2520.104a–3—2520.104a–4 [Reserved]
2520.104a–5 Annual report filing requirements.
2520.104a–6 Annual reporting for plans which
are part of a group insurance arrangement.
2520.104a–7 [Reserved]
2520.104a–8 Requirement to furnish documents to the Secretary of Labor on request.

Subpart F—Disclosure Requirements
2520.104b–1 Disclosure.
2520.104b–2 Summary plan description.
2520.104b–3 Summary of material modifications to the plan and changes in the information required to be included in the
summary plan description.
2520.104b–4 Alternative methods of compliance for furnishing the summary plan description and summaries of material
modifications of a pension plan to a retired participant, a separated participant
with vested benefits, and a beneficiary
receiving benefits.
2520.104b–10 Summary Annual Report.
2520.104b–30 Charges for documents.

Subpart G—Recordkeeping Requirements
2520.107–1 Use of electronic media for maintenance and retention of records.

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AUTHORITY: 29 U.S.C. 1021–1025, 1027, 1029–31,
1059, 1134 and 1135; and Secretary of Labor’s
Order 1–2011 77 FR 1088 (Jan. 9, 2012). Sec.
2520.101–2 also issued under 29 U.S.C. 1132,
1181–1183, 1181 note, 1185, 1185a–b, 1191, and
1191a–c. Secs. 2520.102–3, 2520.104b–1 and
2520.104b–3 also issued under 29 U.S.C. 1003,
1181–1183, 1181 note, 1185, 1185a–b, 1191, and
1191a–c. Secs. 2520.104b–1 and 2520.107 also
issued under 26 U.S.C. 401 note, 111 Stat. 788.
Sec. 2520.101–5 also issued under sec. 501 of
Pub. L. 109–280, 120 Stat. 780 and sec. 105(a),
Pub. L. 110–458, 122 Stat. 5092.
EFFECTIVE DATE NOTE: At 84 FR 27955, June
17, 2019, the authority citation for part 2520
was revised, effective Aug. 16, 2019. For the
convenience of the user, the revised text is
set forth as follows:
AUTHORITY: 29 U.S.C. 1021–1025, 1027, 1029–
1031, 1059, 1134 and 1135. Secretary of Labor’s
Order 1–2011, 77 FR 1088 (January 9, 2012).
Sec. 2520.101–2 also issued under 29 U.S.C.
1132, 1181–1183, 1181 note, 1185, 1185a–b, 1191,
and 1191a–c. Secs. 2520.102–3, 2520.104b–1 and
2520.104b-3 also issued under 29 U.S.C. 1003,

§ 2520.101–2

1181–1183, 1181 note, 1185, 1185a–b, 1191, and
1191a–c. Secs. 2520.104b–1 and 2520.107 also
issued under 26 U.S.C. 401 note, 111 Stat. 788.
Sec. 2520.101–5 also issued under sec. 501 of
Pub. L. 109–280, 120 Stat. 780, and sec. 105(a),
Pub. L. 110–458, 122 Stat. 5092.

Subpart A—General Reporting
and Disclosure Requirements
§ 2520.101–1 Duty of reporting and disclosure.
The procedures for implementing the
plan administrator’s duty of reporting
to the Secretary of Labor and disclosing information to participants and
beneficiaries are located in subparts D,
E and F of this part.
(Approved by the Office of Management and
Budget under control number 1210–0016)
[41 FR 16962, Apr. 23, 1976, as amended at 46
FR 62845, Dec. 29, 1981]

§ 2520.101–2 Filing by multiple employer welfare arrangements and
certain other related entities.
(a) Basis and scope. Section 101(g) of
the Employee Retirement Income Security Act (ERISA), as amended by the
Patient Protection and Affordable Care
Act, requires the Secretary of Labor
(the Secretary) to establish, by regulation, a requirement that multiple employer welfare arrangements (MEWAs)
providing benefits that consist of medical care (as described in paragraph
(b)(6) of this section), which are not
group health plans, to register with the
Secretary prior to operating in a State.
Section 101(g) also permits the Secretary to require, by regulation, such
MEWAs to report, not more frequently
than annually, in such form and manner as the Secretary may require, for
the purpose of determining the extent
to which the requirements of part 7 of
subtitle B of title I of ERISA (part 7)
are being carried out in connection
with such benefits. Section 734 of
ERISA provides that the Secretary
may promulgate such regulations as
may be necessary or appropriate to
carry out the provisions of part 7. This
section sets out requirements for reporting by MEWAs that provide benefits that consist of medical care and by
certain entities that claim not to be a
MEWA solely due to the exception in
section 3(40)(A)(i) of ERISA (referred to

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§ 2520.101–2

29 CFR Ch. XXV (7–1–19 Edition)

in this section as Entities Claiming Exception or ECEs). The reporting requirements apply regardless of whether
the MEWA or ECE is a group health
plan.
(b) Definitions. As used in this section, the following definitions apply:
(1) Administrator means—(i) The person specifically so designated by the
terms of the instrument under which
the MEWA or ECE is operated;
(ii) If the MEWA or ECE is a group
health plan and the administrator is
not so designated, the plan sponsor (as
defined in section 3(16)(B) of ERISA); or
(iii) In the case of a MEWA or ECE
for which an administrator is not designated and a plan sponsor cannot be
identified, jointly and severally, the
person or persons actually responsible
(whether or not so designated under
the terms of the instrument under
which the MEWA or ECE is operated)
for the control, disposition, or management of the cash or property received
by or contributed to the MEWA or
ECE, irrespective of whether such control, disposition, or management is exercised directly by such person or persons or indirectly through an agent,
custodian, or trustee designated by
such person or persons.
(2) Entity Claiming Exception (ECE)
means an entity that claims it is not a
MEWA on the basis that the entity is
established or maintained pursuant to
one or more agreements that the Secretary finds to be collective bargaining
agreements within the meaning of section 3(40)(A)(i) of ERISA and § 2510.3–40.
(3) Excepted benefits means excepted
benefits within the meaning of section
733(c) of ERISA and § 2590.701–2 of this
chapter.
(4) Group health plan means a group
health plan within the meaning of section 733(a) of ERISA and § 2590.701–2 of
this chapter.
(5) Health insurance issuer means a
health insurance issuer within the meaning of section 733(b)(2) of ERISA and
§ 2590.701–2 of this chapter.
(6) Medical care means medical care
within the meaning of section 733(a)(2)
of ERISA and § 2590.701–2 of this chapter.
(7) Multiple employer welfare arrangement (MEWA) means a multiple employer

welfare arrangement within the meaning
of section 3(40) of ERISA.
(8) Operating means any activity including but not limited to marketing,
soliciting, providing, or offering to provide benefits consisting of medical care.
(9) Origination means, with regard to
an ECE, the occurrence of any of the
following events (an ECE is considered
to have been originated only when an
event described below occurs)—
(i) The ECE begins operating with regard to the employees of two or more
employers (including one or more selfemployed individuals);
(ii) The ECE begins operating following a merger with another ECE (unless all of the ECEs that participate in
the merger previously were last originated at least three years prior to the
merger); or
(iii) The number of employees receiving coverage for medical care under the
ECE is at least 50 percent greater than
the number of such employees on the
last day of the previous calendar year
(unless the increase is due to a merger
with another ECE under which all
ECEs that participate in the merger
were last originated at least three
years prior to the merger).
(10) Reporting or to report means to
file the Form M–1 as required pursuant
to sections 101(g) of ERISA; § 2520.101–2;
or the instructions to the Form M–1.
(11) Special filing event means, with
regard to an ECE—
(i) The ECE begins knowingly operating in any additional State or States
that were not indicated on a previous
report filed pursuant to paragraph
(e)(1)(i) or (f)(2)(i) of this section; or
(ii) The ECE experiences a material
change as defined in the Form M–1 instructions.
(12) State means State within the
meaning of § 2590.701–2 of this chapter.
(c) Persons required to report—(1) General rule. Except as provided in paragraph (c)(2) of this section, the following persons are required to report
under this section:
(i) The administrator of a MEWA regardless of whether the entity is a
group health plan; and
(ii) The administrator of an ECE during the three-year period following an
event described in paragraph (b)(9) of
this section.

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Employee Benefits Security Admin., Labor
(2) Exceptions—(i) Nothing in this
paragraph (c) shall be construed to require reporting under this section by
the administrator of a MEWA or ECE
described under this paragraph (c)(2)(i).
(A) A MEWA or ECE licensed or authorized to operate as a health insurance issuer in every State in which it
offers or provides coverage for medical
care to employees;
(B) A MEWA or ECE that provides
coverage that consists solely of excepted benefits, which are not subject
to ERISA part 7. If the MEWA or ECE
provides coverage that consists of both
excepted benefits and other benefits for
medical care that are not excepted benefits, the administrator of the MEWA
or ECE is required to report under this
section;
(C) A MEWA or ECE that is a group
health plan not subject to ERISA, including a governmental plan, church
plan, or a plan maintained solely for
the purpose of complying with workmen’s compensation laws, within the
meaning of sections 4(b)(1), 4(b)(2), or
4(b)(3) of ERISA, respectively; or
(D) A MEWA or ECE that provides
coverage only through group health
plans that are not covered by ERISA,
including governmental plans, church
plans, or plans maintained solely for
the purpose of complying with workmen’s compensation laws within the
meaning of sections 4(b)(1), 4(b)(2), or
4(b)(3) of ERISA, respectively (or other
arrangements not covered by ERISA,
such as health insurance coverage offered to individuals other than in connection with a group health plan,
known as individual market coverage).
(ii) Nothing in this paragraph (c)
shall be construed to require reporting
under this section by the administrator
of an entity that would not constitute
a MEWA or ECE but for the following
circumstances under this paragraph
(c)(2)(ii).
(A) The entity provides coverage to
the employees of two or more trades or
businesses that share a common control interest of at least 25 percent at
any time during the plan year, applying principles similar to the principles
of section 414(c) of the Internal Revenue Code;
(B) The entity provides coverage to
the employees of two or more employ-

§ 2520.101–2

ers due to a change in control of businesses (such as a merger or acquisition)
that occurs for a purpose other than
avoiding Form M–1 filing and is temporary in nature. For purposes of this
paragraph, ‘‘temporary’’ means the
MEWA or ECE does not extend beyond
the end of the plan year following the
plan year in which the change in control occurs; or
(C) The entity provides coverage to
persons (excluding spouses and dependents) who are not employees or former
employees of the plan sponsor, such as
non-employee members of the board of
directors or independent contractors,
and the number of such persons who
are not employees or former employees
does not exceed one percent of the
total number of employees or former
employees covered under the arrangement, determined as of the last day of
the year to be reported or, determined
as of the 60th day following the date
the MEWA or ECE began operating in a
manner such that a filing is required
pursuant to paragraph (e)(1)(i), (2), or
(3) of this section.
(3) Examples. The rules of this paragraph (c) are illustrated by the following examples:
Example 1. (i) Facts. MEWA A begins operating by offering coverage to the employees
of two or more employers on August 1, 2013.
MEWA A is licensed or authorized to operate
as a health insurance issuer in every State in
which it offers coverage for medical care to
employees.
(ii) Conclusion. In this Example 1, the administrator of MEWA A is not required to report via Form M–1. MEWA A meets the exception to the filing requirement in paragraph (c)(2)(i)(A) of this section because it is
licensed or authorized to operate as a health
insurance issuer in every State in which it
offers coverage for medical care to employees.
Example 2. (i) Facts. Company B maintains
a group health plan that provides benefits
for medical care for its employees (and their
dependents). Company B establishes a joint
venture in which it has a 25 percent stock
ownership interest, determined by applying
the principles similar to the principles under
section 414(c) of the Internal Revenue Code,
and transfers some of its employees to the
joint venture. Company B continues to cover
these transferred employees under its group
health plan.
(ii) Conclusion. In this Example 2, the administrator is not required to file the Form
M–1 because Company B’s group health plan

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§ 2520.101–2

29 CFR Ch. XXV (7–1–19 Edition)

meets the exception to the filing requirement in paragraph (c)(2)(ii)(A) of this section. This is because Company B’s group
health plan would not constitute a MEWA
but for the fact that it provides coverage to
two or more trades or businesses that share
a common control interest of at least 25 percent.
Example 3. (i) Facts. Company C maintains
a group health plan that provides benefits
for medical care for its employees. The plan
year of Company C’s group health plan is the
fiscal year for Company C, which is October
1st—September 30th. Therefore, October 1,
2012—September 30, 2013 is the 2013 plan year.
Company C decides to sell a portion of its
business, Division Z, to Company D. Company C signs an agreement with Company D
under which Division Z will be transferred to
Company D, effective September 30, 2013. The
change in control of Division Z therefore occurs on September 30, 2013. Under the terms
of the agreement, Company C agrees to continue covering all of the employees that formerly worked for Division Z under its group
health plan until Company D has established
a new group health plan to cover these employees. Under the terms of the agreement,
it is anticipated that Company C will not be
required to cover the employees of Division
Z under its group health plan beyond the end
of the 2014 plan year, which is the plan year
following the plan year in which the change
in control of Division Z occurred.
(ii) Conclusion. In this Example 3, the administrator of Company C’s group health
plan is not required to report via the Form
M–1 on March 1, 2014 for fiscal year 2013 because it is subject to the exception to the filing requirement in paragraph (c)(2)(ii)(B) of
this section for an entity that would not constitute a MEWA but for the fact that it is
created by a change in control of businesses
that occurs for a purpose other than to avoid
filing the Form M–1 and is temporary in nature. Under the exception, ‘‘temporary’’
means the MEWA does not extend beyond
the end of the plan year following the plan
year in which the change in control occurs.
The administrator is not required to file the
2013 Form M–1 annual report because it is
anticipated that Company C will not be required to cover the employees of Division Z
under its group health plan beyond the end
of the 2014 plan year, which is the plan year
following the plan year in which the change
in control of businesses occurred.
Example 4. (i) Facts. Company E maintains
a group health plan that provides benefits
for medical care for its employees (and their
dependents) as well as certain independent
contractors who are self-employed individuals. The plan is therefore a MEWA. The administrator of Company E’s group health
plan uses calendar year data to report for
purposes of the Form M–1. The administrator
of Company E’s group health plan determines

that the number of independent contractors
covered under the group health plan as of the
last day of calendar year 2013 is less than one
percent of the total number of employees
and former employees covered under the
plan determined as of the last day of calendar year 2013.
(ii) Conclusion. In this Example 4, the administrator of Company E’s group health
plan is not required to report via the Form
M–1 for calendar year 2013 (a filing that is
otherwise due by March 1, 2014) because it is
subject to the exception to the filing requirement provided in paragraph (c)(2)(ii)(C) of
this section for entities that cover a very
small number of persons who are not employees or former employees of the plan
sponsor.

(d) Information to be reported—(1) Any
reporting required by this section shall
consist of a completed copy of the
Form M–1 Report for Multiple Employer Welfare Arrangements (MEWAs)
and Certain Entities Claiming Exception (ECEs) (Form M–1) and any additional statements required pursuant to
the instructions for the Form M–1.
(2) Rejected filings.—The Secretary
may reject any filing under this section if the Secretary determines that
the filing is incomplete, in accordance
with § 2560.502c–5 of this chapter.
(3) If the Secretary rejects a filing
under paragraph (d)(2) of this section,
and if a revised filing satisfactory to
the Secretary is not submitted within
45 days after the notice of rejection,
the Secretary may bring a civil action
for such relief as may be appropriate
(including penalties under section
502(c)(5) of ERISA and § 2560.502c–5 of
this chapter).
(e) Origination, registration, and other
non-annual reporting requirements and
timing—(1) General rule for ECEs—(i) Except as provided in paragraph (e)(1)(ii)
of this section, and subject to the limitations
established
by
paragraph
(c)(1)(ii) of this section, when an ECE
experiences an event described in paragraphs (b)(9) or (b)(11) of this section,
the administrator of the ECE shall file
Form M–1 by the 30th day following the
date of the event.
(ii) Exception. Paragraph (e)(1)(i) of
this section does not apply to ECEs
that experience an origination as described in paragraph (b)(9)(i) of this
section. Such entities are required,
subject to the limitations established
by paragraph (c)(1)(ii) of this section,

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Employee Benefits Security Admin., Labor
to file the Form M–1 30 days prior to
the date of the event.
(2) General rule for MEWAs—(i) In general. Except as provided in paragraph
(e)(2)(ii) of this section, the administrator of the MEWA is required to register with the Secretary by filing the
Form M–1 30 days prior to operating in
any State.
(ii) Exception. Paragraph (e)(2)(i) of
this section does not apply to MEWAs
that, prior to the effective date of this
section, were already in operation in a
State (or States). Such entities are required to submit an annual filing pursuant to annual reporting rules described in paragraph (f)(2)(i) of this section for that State (or those States).
(3) Special rule requiring MEWAs to
make additional filings. Subsequent to
registering with the Secretary pursuant to paragraph (e)(2)(i) of this section, the administrator of a MEWA
shall file the Form M–1:
(i) Within 30 days of knowingly operating in any additional State or States
that were not indicated on a previous
report filed pursuant to paragraph
(e)(2)(i) or (f)(2)(i) of this section;
(ii) Within 30 days of the MEWA operating with regard to the employees of
an additional employer (or employers,
including one or more self-employed
individuals) after a merger with another MEWA;
(iii) Within 30 days of the date the
number of employees receiving coverage for medical care under the
MEWA is at least 50 percent greater
than the number of such employees on
the last day of the previous calendar
year; or
(iv) Within 30 days of experiencing a
material change as defined in the Form
M–1 instructions.
(4) Anti-abuse rule. If a MEWA or ECE
neither offers nor provides benefits
consisting of medical care within a
State during the calendar year immediately following the year in which a
filing is made by the ECE pursuant to
paragraph (e)(1) of this section (due to
an event described in paragraph
(b)(9)(i) or (b)(11)(i) of this section) or a
filing is made by the MEWA pursuant
to paragraph (e)(2) or (3) of this section, with respect to operating in such
State, such filing will be considered to
have lapsed.

§ 2520.101–2

(5) Multiple filings not required in certain circumstances. If multiple filings
are required under this paragraph (e), a
single filing will satisfy this section so
long as the filing is timely for each required filing.
(6) Extensions. (i) An extension may
be granted for filing a report required
by paragraph (e)(1), (2), or (3) of this
section if the administrator complies
with the extension procedure prescribed in the instructions to the Form
M–1.
(ii) If the filing deadline set forth in
this paragraph (e) is a Saturday, Sunday, or federal holiday, the form must
be filed no later than the next business
day.
(f) Annual reporting requirements and
timing—(1) Period for which reporting is
required. A completed copy of the Form
M–1 is required to be filed for each calendar year during all or part of which
the MEWA is operating and for each of
the three calendar years following an
origination during all or part of which
the ECE is operating.
(2) Filing deadline—(i) General March 1
filing due date for annual filings. Except
as provided in paragraph (f)(2)(ii) of
this section, a completed copy of the
Form M–1 is required to be filed on or
before each March 1 that follows a period for which reporting is required (as
described in paragraph (f)(1) of this section).
(ii) Exception. Paragraph (f)(2)(i) of
this section does not apply to ECEs and
MEWAs if, between October 1 and December 31, the entity is required to
make a filing pursuant to paragraph
(e)(1), (2), or (3) of this section and
makes that filing timely.
(3) Extensions. (i) An extension may
be granted for filing a report required
by paragraph (f)(2)(i) of this section if
the administrator complies with the
extension procedure prescribed in the
instructions to the Form M–1.
(ii) If the filing deadline set forth in
this paragraph (f) is a Saturday, Sunday, or federal holiday, the form must
be filed no later than the next business
day.
(4) Examples. The rules of paragraphs
(e) and (f) of this section are illustrated
by the following examples:

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§ 2520.101–2

29 CFR Ch. XXV (7–1–19 Edition)

Example 1. (i) Facts. MEWA A began offering coverage for medical care to the employees of two or more employers on July 1, 2003
(and continues to offer such coverage).
MEWA A has satisfied all filing requirements
to date.
(ii) Conclusion. In this Example 1, the administrator of MEWA A must continue to
file a timely completed Form M–1 annual report each year, but the administrator is not
required to register with the Secretary because MEWA A meets the exception to the
registration
requirement
in
paragraph
(e)(2)(ii) of this section and has not experienced any event described in paragraph (e)(3)
that would require registering with the Secretary.
Example 2. (i) Facts. On August 25, 2013,
MEWA B is operating in State P and has
made all appropriate filings related to those
operations. On December 22, 2013 one of the
employers that participates in MEWA B is
awarded a new contract in State Q. The employer adds an office in State Q and the employees there are eligible to access its group
health plan.
(ii) Conclusion. In this Example 2, the administrator of MEWA B must report the addition of State Q by filing the Form M–1
within 30 days of knowing that it is operating in State Q.
Example 3. (i) Facts. As of July 1, 2013,
MEWA C is preparing to operate in States Y
and Z. MEWA C is not licensed or authorized
to operate as a health insurance issuer in
any State and does not meet any of the other
exceptions set forth in paragraph (c)(2) of
this section.
(ii) Conclusion. In this Example 3, the administrator of MEWA C is required to register with the Secretary by filing a completed Form M–1 30 days prior to operating
in States Y or Z. The administrator of
MEWA C must also report by filing the Form
M–1 annually by every March 1 thereafter.
Example 4. (i) Facts. As of July 28, 2013,
MEWA D is operating in States V and W.
MEWA D has satisfied the requirements of
(e)(2) and, if applicable, (e)(3) with respect to
those States. MEWA D is not licensed or authorized to operate as a health insurance
issuer in any State and does not meet any of
the other exceptions set forth in (c)(2) of this
section. On August 5, 2013 MEWA D knowingly begins operating in State X.
(ii) Conclusion. In this Example 4, the administrator of MEWA D is required to make
an additional registration filing with the
Secretary by September 4, 2013 (within 30
days of knowingly operating in State X). Additionally, the administrator of MEWA D
must continue to file the Form M–1 annually
by every March 1 thereafter.
Example 5. (i) Facts. ECE A began offering
coverage for medical care to the employees
of two or more employers on January 1, 2007
and ECE A has not been involved in any

mergers or experienced any other origination
as described in paragraph (b)(9) of this section.
(ii) Conclusion. In this Example 5, ECE A
was originated on January 1, 2007 and has
not been originated since then. Therefore,
the administrator of ECE A is not required
to file a 2012 Form M–1 because the last time
the ECE A was originated was January 1,
2007 which is more than three years prior.
Further, the ECE has satisfied its reporting
requirements by making three timely annual
filings after its origination.
Example 6. (i) Facts. ECE B wants to begin
offering coverage for medical care to the employees of two or more employers on July 1,
2013.
(ii) Conclusion. In this Example 6, the administrator of ECE B must file a completed
Form M–1 on or before June 1, 2013 (which is
30 days prior to the origination date). In addition, the administrator of ECE B must file
an updated copy of the Form M–1 by March
1, 2014 because the last date ECE B was originated was July 1, 2013 (which is less than
three years prior to the March 1, 2014 due
date). Furthermore, the administrator of
ECE B must file the Form M–1 by March 1,
2015 and again by March 1, 2016 (because July
1, 2013 is less than three years prior to March
1, 2015 and March 1, 2016, respectively). However, if ECE B is not involved in any mergers
and does not experience any other origination as described in paragraph (b)(9) of this
section, there would not be a new origination
date and no Form M–1 is required to be filed
after March 1, 2016.
Example 7. (i) Facts. ECE D, which currently operates in State A and is still within
the three-year window following its origination and the timely filing related thereto, is
making preparations to operate in State B
beginning on November 1, 2013.
(ii) Conclusion. In this Example 7, by operating in State B, ECE D experiences a special
event within the three-year window following its origination and must make a filing by December 2, 2013.
Example 8. (i) Facts. Same facts as Example
7. ECE D satisfied its special filing requirement but is unsure about its annual filing requirements.
(ii) Conclusion. ECE D is exempt from the
next annual filing due March 1, 2014 pursuant
to the filing deadline exception under
(f)(2)(ii) of this section. However, ECE D
must continue making annual filings for the
remainder of the three years following its
origination.
Example 9. (i) Facts. MEWA E begins distributing marketing materials on August 31,
2013.
(ii) Conclusion. In this Example 8, because
MEWA E began operating on August 31, 2013,
the administrator of MEWA E must register
with the Secretary by filing a completed
Form M–1 on or before August 1, 2013 (30 days

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Employee Benefits Security Admin., Labor
prior to operating in any State). In addition,
the administrator of MEWA E must file the
Form M–1 annually by every March 1 thereafter.
Example 10. (i) Facts. Same facts as Example
9, but MEWA E registers on or before August
1, 2013 by filing a Form M–1 indicating it will
begin operating in every State. However, in
the calendar year immediately following the
filing, MEWA E only offered or provided benefits consisting of medical care to participants in State Z.
(ii) Conclusion. In this Example 10, the registration for all States (other than State Z)
have lapsed under (e)(4) because MEWA E
only offered or provided benefits consisting
of medical care to participants in State Z in
the calendar year immediately following the
filing. If subsequently, MEWA E begins offering or providing benefits consisting of medical care to participants in any additional
State (or States), it must make a new registration filing pursuant to (e)(3) of this section.

(g) Electronic filing. A completed
Form M–1 is filed with the Secretary
by submitting it electronically as prescribed in the instructions to the Form
M–1.
(h) Penalties—(1) Civil penalties and
procedures. For information on civil
penalties under section 502(c)(5) of
ERISA for persons who fail to file the
information required under this section, see § 2560.502c–5 of this chapter.
For information relating to administrative hearings and appeals in connection with the assessment of civil penalties under section 502(c)(5) of ERISA,
see §§ 2570.90 through 2570.101 of this
chapter.
(2) Criminal penalties and procedures.
For information on criminal penalties
under section 519 of ERISA for persons
who knowingly make false statements
or false representation of fact with regards to the information required
under this section, see section 501(b) of
ERISA.
(3) Cease and desist and summary seizure orders. For information on the Secretary’s authority to issue a cease and
desist or summary seizure order under
section 521 of ERISA, see § 2560.521.

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[78 FR 13792, Mar. 1, 2013]

§ 2520.101–3 Notice of blackout periods
under individual account plans.
(a) In general. In accordance with section 101(i) of the Act, the administrator
of an individual account plan, within

§ 2520.101–3

the meaning of paragraph (d)(2) of this
section, shall provide notice of any
blackout period, within the meaning of
paragraph (d)(1) of this section, to all
participants and beneficiaries whose
rights under the plan will be temporarily suspended, limited, or restricted
by the blackout period (the ‘‘affected
participants and beneficiaries’’) and to
issuers of employer securities subject
to such blackout period in accordance
with this section.
(b) Notice to participants and beneficiaries—(1) Content. The notice required by paragraph (a) of this section
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) A description of the rights otherwise available to participants and
beneficiaries under the plan that will
be temporarily suspended, limited or
restricted by the blackout period (e.g.,
right to direct or diversify assets in individual accounts, right to obtain loans
from the plan, right to obtain distributions from the plan), including identification of any investments subject to
the blackout period;
(iii) The length of the blackout period by reference to:
(A) The expected beginning date and
ending date of the blackout period; or
(B) The calendar week during which
the blackout period is expected to
begin and end, provided that during
such weeks information as to whether
the blackout period has begun or ended
is readily available, without charge, to
affected participants and beneficiaries,
such as via a toll-free number or access
to a specific web site, and the notice
describes how to access the information;
(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 in their
accounts during the blackout period (a
notice that includes the advisory statement contained in paragraph 4. of the
model notice in paragraph (e)(2) of this
section will satisfy this requirement);

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§ 2520.101–3

29 CFR Ch. XXV (7–1–19 Edition)

(v) In any case in which the notice
required by paragraph (a) of this section is not furnished at least 30 days in
advance of the last date on which affected participants and beneficiaries
could exercise affected rights immediately before the commencement of
the blackout period, except for a notice
furnished
pursuant
to
paragraph
(b)(2)(ii)(C) of this section:
(A) A statement that Federal law
generally requires that notice be furnished to affected participants and
beneficiaries at least 30 days in advance of the last date on which participants and beneficiaries could exercise
the affected rights immediately before
the commencement of a blackout period (a notice that includes the statement contained in paragraph 5. of the
model notice in paragraph (e)(2) of this
section will satisfy this requirement),
and
(B) An explanation of the reasons
why at least 30 days advance notice
could not be furnished; and
(vi) The name, address and telephone
number of the plan administrator or
other contact responsible for answering
questions about the blackout period.
(2) Timing. (i) The notice described in
paragraph (a) of this section shall be
furnished to all affected participants
and beneficiaries at least 30 days, but
not more than 60 days, in advance of
the last date on which such participants and beneficiaries could exercise
the affected rights immediately before
the commencement of any blackout period.
(ii) The requirement to give at least
30 days advance notice contained in
paragraph (b)(2)(i) of this section shall
not apply in any case in which—
(A) A deferral of the blackout period
in order to comply with paragraph
(b)(2)(i) of this section would result in
a violation of the requirements of section 404(a)(1)(A) or (B) of the Act, and
a fiduciary of the plan reasonably so
determines in writing;
(B) The inability to provide the advance notice of a blackout period 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; or

(C) The blackout period applies only
to one or more participants or beneficiaries solely in connection with
their becoming, or ceasing to be, participants or beneficiaries of the plan as
a result of a merger, acquisition, divestiture, or similar transaction involving
the plan or plan sponsor.
(iii) In any case in which paragraph
(b)(2)(ii) of this section applies, the administrator shall furnish the notice described in paragraph (a) of this section
to all affected participants and beneficiaries as soon as reasonably possible
under the circumstances, unless such
notice in advance of the termination of
the blackout period is impracticable.
(iv) Determinations under paragraph
(b)(2)(ii)(A) and (B) of this section must
be dated and signed by the fiduciary.
(3) Form and manner of furnishing notice. The notice required by paragraph
(a) of this section shall be in writing
and furnished to affected participants
and beneficiaries in any manner consistent with the requirements of
§ 2520.104b–1 of this chapter, including
paragraph (c) of that section relating
to the use of electronic media.
(4) Changes in length of blackout period. If, following the furnishing of a
notice pursuant to this section, there
is a change in the length of the blackout period (specified in such notice
pursuant to paragraph (b)(1)(iii) of this
section), the administrator shall furnish all affected participants and beneficiaries an updated notice explaining
the reasons for the change and identifying all material changes in the information contained in the prior notice.
Such notice shall be furnished to all affected participants and beneficiaries as
soon as reasonably possible, unless
such notice in advance of the termination of the blackout period is impracticable.
(c) Notice to issuer of employer securities. (1) The notice required by paragraph (a) of this section shall be furnished to the issuer of any employer
securities held by the plan and subject
to the blackout period. Such notice
shall contain the information described
in paragraph (b)(1)(i), (ii), (iii) and (vi)
of this section and shall be furnished in
accordance with the time frames prescribed in paragraph (b)(2) of this section. In the event of a change in the

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Employee Benefits Security Admin., Labor
length of the blackout period specified
in such notice, the plan administrator
shall furnish an updated notice to the
issuer in accordance with the requirements of paragraph (b)(4) of this section.
(2) For purposes of this section, notice to the agent for service of legal
process for the issuer shall constitute
notice to the issuer, unless the issuer
has provided the plan administrator
with the name of another person for
service of notice, in which case the
plan administrator shall furnish notice
to such person. Such notice shall be in
writing, except that the notice may be
in electronic or other form to the extent the person to whom notice must
be furnished consents to receive the notice in such form.
(3) If the issuer designates the plan
administrator as the person for service
of notice pursuant to paragraph (c)(2)
of this section, the issuer shall be
deemed to have been furnished notice
on the same date as notice is furnished
to affected participants and beneficiaries pursuant to paragraph (b) of
this section.
(d) Definitions. For purposes of this
section—
(1) Blackout period—(i) 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 three consecutive business days.
(ii) Exclusions. The term ‘‘blackout
period’’ does not include a suspension,
limitation, or restriction—
(A) Which occurs by reason of the application of the securities laws (as defined in section 3(a)(47) of the Securities Exchange Act of 1934);
(B) Which is a regularly scheduled
suspension, limitation, or restriction
under the plan (or change thereto), provided that such suspension, limitation
or restriction (or change) has been disclosed to affected plan participants and

§ 2520.101–3

beneficiaries through the summary
plan description, a summary of material modifications, materials describing specific investment alternatives
under the plan and limits thereon or
any changes thereto, participation or
enrollment forms, or any other documents and instruments pursuant to
which the plan is established or operated that have been furnished to such
participants and beneficiaries;
(C) Which occurs by reason of a qualified domestic relations order or by reason of a pending determination (by the
plan administrator, by a court of competent
jurisdiction
or
otherwise)
whether a domestic relations order
filed (or reasonably anticipated to be
filed) with the plan is a qualified order
within
the
meaning
of
section
206(d)(3)(B)(i) of the Act; or
(D) Which occurs by reason of an act
or a failure to act on the part of an individual participant or by reason of an
action or claim by a party unrelated to
the plan involving the account of an individual participant.
(2) Individual account plan. The term
‘‘individual account plan’’ shall have
the meaning provided such term in section 3(34) of the Act, except that such
term shall not include a ‘‘one-participant retirement plan’’ within the
meaning of paragraph (d)(3) of this section.
(3) One-participant retirement plan.
The term ‘‘one-participant retirement
plan’’ means a one-participant retirement plan as defined in section
101(i)(8)(B) of the Act.
(4) Issuer. The term ‘‘issuer’’ means
an issuer as defined in section 3 of the
Securities Exchange Act of 1934 (15
U.S.C. 78c), the securities of which are
registered under section 12 of the Securities Exchange Act of 1934, or that is
required to file reports under section
15(d) of the Securities Exchange Act of
1934, or files or has filed a registration
statement that has not yet become effective under the Securities Act of 1933
(15 U.S.C. 77a et seq.), and that it has
not withdrawn.
(5) Calendar week. For purposes of
paragraph (b)(1)(iii)(B), the term ‘‘calendar week’’ means a seven day period
beginning on Sunday and ending on
Saturday.

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§ 2520.101–4

29 CFR Ch. XXV (7–1–19 Edition)

(e) Model notice—(1) General. The
model notice set forth in paragraph
(e)(2) of this section is intended to assist plan administrators in discharging
their notice obligations under this section. Use of the model notice is not
mandatory. However, a notice that
uses the statements provided in paragraphs 4. and 5.(A) of the model notice
will be deemed to satisfy the notice
content requirements of paragraph
(b)(1)(iv) and (b)(1)(v)(A), respectively,
of this section. With regard to all other
information required by paragraph
(b)(1) of this section, compliance with
the notice content requirements will
depend on the facts and circumstances
pertaining to the particular blackout
period and plan.
(2) Form and content of model notice.
Important Notice Concerning Your Rights

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Under The [Enter Name of Individual
Account Plan]
[Enter date of notice]
1. This notice is to inform you that the
[enter name of plan] will be [enter reasons
for blackout period, as appropriate: changing
investment options, changing recordkeepers,
etc.].
2. As a result of these changes, you temporarily will be unable to [enter as appropriate:
direct or diversify investments in your individual accounts (if only specific investments
are subject to the blackout, those investments should be specifically identified), obtain a loan from the plan, or obtain a distribution from the plan]. This period, during
which you will be unable to exercise these
rights otherwise available under the plan, is
called a ‘‘blackout period.’’ Whether or not
you are planning retirement in the near future, we encourage you to carefully consider
how this blackout period may affect your retirement planning, as well as your overall financial plan.
3. The blackout period for the plan [enter
the following as appropriate: is expected to
begin on [enter date] and end [enter date]/is
expected to begin during the week of [enter
date] and end during the week of [enter
date]. During these weeks, you can determine whether the blackout period has started or ended by [enter instructions for use
toll-free number or accessing web site].
4. [In the case of investments affected by the
blackout period, add the following: During
blackout period you will be unable to direct
or diversify the assets held in your plan account. For this reason, it is very important
that you review and consider the appropriateness of your current investments in

light of your inability to direct or diversify
those investments during the blackout period. For your long-term retirement security, you should give careful consideration to
the importance of a well-balanced and diversified investment portfolio, taking into account all your assets, income and investments.] [If the plan permits investments in
individual securities, add the following: You
should be aware that there is a risk to holding substantial portions of your assets in the
securities of any one company, as individual
securities tend to have wider price swings,
up and down, in short periods of time, than
investments in diversified funds. Stocks that
have wide price swings might have a large
loss during the blackout period, and you
would not be able to direct the sale of such
stocks from your account during the blackout period.]
5. [If timely notice cannot be provided (see
paragraph (b)(1)(v) of this section) enter: (A)
Federal law generally requires that you be
furnished notice of a blackout period at least
30 days in advance of the last date on which
you could exercise your affected rights immediately before the commencement of any
blackout period in order to provide you with
sufficient time to consider the effect of the
blackout period on your retirement and financial plans. (B) [Enter explanation of reasons for inability to furnish 30 days advance
notice.]]
6. If you have any questions concerning
this notice, you should contact [enter name,
address and telephone number of the plan administrator or other contact responsible for
answering questions about the blackout period].

(f) Effective date. This section shall be
effective and shall apply to any blackout period commencing on or after
January 26, 2003. For the period January 26, 2003 to February 25, 2003, plan
administrators shall furnish notice as
soon as reasonably possible.
[68 FR 3727, Jan. 24, 2003]

§ 2520.101–4

[Reserved]

§ 2520.101–5 Annual funding notice for
defined benefit pension plans.
(a) In general. (1) Except as provided
in paragraphs (a)(2) and (3) of this section, pursuant to section 101(f) of the
Act, the administrator of a defined
benefit plan to which title IV of the
Act applies shall furnish annually to
each person specified in paragraph (f)
of this section a funding notice that
conforms to the requirements of this
section.

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Employee Benefits Security Admin., Labor
(2) A plan administrator shall not be
required to furnish a funding notice—
(i) In the case of a multiemployer
plan, for a plan year if the due date for
such notice is on or after the earlier of:
(A) The date the plan complies with
the insolvency notice requirements of
section 4245(e) or 4281(d)(3) of the Act
and regulations thereunder; or
(B) The date the plan has distributed
assets in satisfaction of all nonforfeitable benefits under the plan pursuant
to section 4041A of the Act and the regulations thereunder.
(ii) In the case of a single-employer
plan, for a plan year if the due date for
the funding notice is on or after the
date:
(A) The Pension Benefit Guaranty
Corporation is appointed as trustee of
the plan pursuant to section 4042 of the
Act;
(B) The plan has distributed assets in
satisfaction of all benefit liabilities in
a distress termination pursuant to section 4041(c)(3)(B)(i) of the Act or of all
guaranteed benefits in a distress termination
pursuant
to
section
4041(c)(3)(B)(ii) of the Act; or
(C) The plan administrator filed a
standard termination notice with the
Pension Benefit Guaranty Corporation
pursuant to 29 CFR 4041.25, provided
that the proposed termination date is
on or before the due date of the funding
notice and a final distribution of assets
in satisfaction of all benefit liabilities
proceeds in accordance with section
4041(b) of the Act.
(3) In the case of a merger or consolidation of two or more plans—
(i) The plan administrator of a nonsuccessor plan shall not be required to
furnish a funding notice for the plan
year in which the merger or consolidation occurred; and
(ii) The funding notice of the successor plan, for the plan year in which
the merger or consolidation occurred,
must, in addition to the requirements
of paragraph (b) of this section, contain
a general explanation, including the effective date, of the merger or consolidation and an identification of each
plan (e.g., name and plan number) involved in the merger or consolidation.
(b) Content of notice. A funding notice
shall include the following information:

§ 2520.101–5

(1) Identifying information. The name
of the plan, the name, address, and
phone number of the plan administrator and the plan’s principal administrative officer (if different than the
plan administrator), each plan sponsor’s name and employer identification
number, and the plan number.
(2) Funding percentage—(i) Single-employer plans. For single-employer plans,
a statement as to whether the plan’s
funding target attainment percentage
(as defined in section 303(d)(2) of the
Act) for the notice year, and for each of
the two preceding plan years, is at
least 100 percent (and, if not, the actual
percentages).
(ii) Multiemployer plans. For multiemployer plans, a statement as to whether the plan’s funded percentage (as defined in section 305(i) of the Act) for
the notice year, and for each of the two
preceding plan years, is at least 100
percent (and, if not, the actual percentages).
(3) Assets and liabilities—(i) Single-employer
plans.
For
single-employer
plans—
(A) A statement of the total assets
(separately stating the prefunding balance and the funding standard carryover balance) and liabilities of the
plan, determined in the same manner
as under section 303 of the Act, as of
the valuation date of the notice year
and for each of the two preceding plan
years, as reported in the annual report
filed under section 104 of the Act for
each such preceding plan year, and
(B) A statement of the value of the
plan’s assets and liabilities determined
as of the last day of the notice year.
For purposes of this statement, the
value of the plan’s assets is the fair
market value of plan assets. Plan liabilities are equal to the present value
of benefits accrued through the last
day of the notice year determined in
the same manner as liabilities are calculated under section 303 of the Act
(including actuarial assumptions and
methods), but using the interest rate
under section 4006(a)(3)(E)(iv) of the
Act in effect for the last month of the
notice year.
(ii) Multiemployer plans. For multiemployer plans—
(A) A statement of the value of the
plan’s assets (determined in the same

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§ 2520.101–5

29 CFR Ch. XXV (7–1–19 Edition)

manner as under section 304(c)(2) of the
Act) and liabilities (determined in the
same manner as under section 305(i)(8)
of the Act, using reasonable actuarial
assumptions as required under section
304(c)(3) of the Act) as of the valuation
date of the notice year and each of the
two preceding plan years, and
(B) A statement of the fair market
value of plan assets as of the last day
of the notice year, and as of the last
day of each of the two preceding plan
years as reported in the annual report
filed under section 104(a) of the Act for
each such preceding plan year.
(iii) Contributions receivable. For purposes of determining the fair market
value of plan assets as of the last day
of the notice year under paragraphs
(b)(3)(i)(B) and (b)(3)(ii)(B) of this section, the plan administrator may, but
is not required to, include contributions made after the notice year and
before the notice is furnished to recipients, but only to the extent such contributions are treated for funding purposes as having been made on account
of the notice year under section
303(g)(4) of the Act, in the case of a single-employer plan, or under section
304(c)(8) of the Act, in the case of a
multiemployer plan.
(4) Demographic information. A statement of the number of participants and
beneficiaries who, as of the valuation
date of the notice year, are: Retired or
separated from service and receiving
benefits; retired or separated from
service and entitled to future benefits
(but currently not receiving benefits);
or active participants under the plan.
The statement shall indicate the number of participants and beneficiaries in
each category and the sum of all such
participants and beneficiaries. The
terms ‘‘active’’ and ‘‘retired or separated’’ shall have the same meaning
given to those terms in instructions to
the annual report filed under section
104(a) of the Act.
(5) Funding policy. A statement setting forth—
(i) The funding policy of the plan;
(ii) The asset allocation of investments under the plan (expressed as percentages of total assets) as of the end
of the notice year; and
(iii) A general description of any investment policy of the plan as it re-

lates to the funding policy in paragraph (b)(5)(i) of this section and the
asset allocation of investments under
paragraph (b)(5)(ii) of this section.
(6) Endangered, critical, or critical and
declining status. In the case of a multiemployer plan, a statement whether
the plan was in endangered, critical, or
critical and declining status under section 305 of the Act for the notice year
and, if so—
(i) A statement describing how a person may obtain a copy of the plan’s
funding improvement plan or rehabilitation plan, as appropriate, adopted
under section 305 of the Act and the actuarial and financial data that demonstrate any action taken by the plan
toward fiscal improvement;
(ii) A summary of the plan’s funding
improvement plan or rehabilitation
plan, including any update or modification of such funding improvement or
rehabilitation plan adopted under section 305 of the Act during the notice
year; and
(iii) In the case of a multiemployer
plan in critical and declining status:
(A) The projected date of insolvency;
(B) A clear statement that such insolvency may result in benefit reductions; and
(C) A statement describing whether
the plan sponsor has taken legally permitted actions to prevent insolvency.
(7) Events having a material effect on liabilities or assets. Subject to paragraph
(g) of this section, 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,
an explanation of the amendment,
scheduled benefit increase or reduction, or event, and a projection to the
end of such plan year of the effect of
the amendment, scheduled benefit increase or reduction, or event on plan liabilities.
(8) Rules on termination or insolvency—
(i) Single-employer plans. In the case of
a single-employer plan, a summary of
the rules governing termination of single-employer plans under subtitle C of
title IV of the Act.
(ii) Multiemployer plans. In the case of
a multiemployer plan, a summary of

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Employee Benefits Security Admin., Labor
the rules governing insolvency, including the limitations on benefit payments.
(9) PBGC guarantees. 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.
(10) Annual report information. A
statement that a person entitled to notice under paragraph (f) of this section
may obtain a copy of the annual report
of the plan filed under section 104(a) of
the Act upon request, through the
Internet Web site of the Department of
Labor, or through any Intranet Web
site maintained by the applicable plan
sponsor (or plan administrator on behalf of the plan sponsor).
(11) Information disclosed to PBGC. In
the case of a single-employer plan, if
applicable, a statement that the contributing sponsor of the plan or a member of the contributing sponsor’s controlled group was required to provide
information under section 4010 of the
Act for the information year ending in
the notice year (see 29 CFR 4010.5).
(12) Additional information. Any additional information that the plan administrator elects to include, provided
that such information is necessary or
helpful to understanding the mandatory information in the notice, or is
otherwise permitted by law.
(c) Style and format of notice. Funding
notices shall be written in a manner
that is consistent with the style and
format requirements of § 2520.102–2 of
this chapter.
(d) When to furnish notice. (1) Except
as provided in paragraph (d)(2) of this
section, a funding notice shall be provided not later than 120 days after the
end of the notice year.
(2) In the case of a small plan, a funding notice shall be provided not later
than the earlier of the date on which
the annual report is filed under section
104(a) of the Act or the latest date the
annual report must be filed under that
section (including extensions). For this
purpose, a single-employer plan is a
small plan if it meets the exception in
section 303(g)(2)(B) of the Act, and a
multiemployer plan is a small plan if it

§ 2520.101–5

had 100 or fewer participants on each
day during the plan year preceding the
notice year.
(e) Manner of furnishing notice. (1)
[Reserved.]
(2) A funding notice must be furnished to the Pension Benefit Guaranty Corporation in a manner consistent with the requirements of part
4000 of title IV of the Act. The date
that the notice is furnished to the Pension Benefit Guaranty Corporation is
determined consistent with that part.
(f) Persons entitled to notice. Persons
entitled to a funding notice under this
section are:
(1) Each participant covered under
the plan on the last day of the notice
year;
(2) Each beneficiary receiving benefits under the plan on the last day of
the notice year;
(3) Each alternate payee under the
plan on the last day of the notice year;
(4) Each labor organization representing participants under the plan
on the last day of the notice year;
(5) In the case of a multiemployer
plan, each employer that, as of the last
day of the notice year, is a party to the
collective bargaining agreement(s) pursuant to which the plan is maintained
or who otherwise may be subject to
withdrawal liability pursuant to section 4203 of the Act; and
(6) The Pension Benefit Guaranty
Corporation.
(g) Special rules and definitions for material effect disclosures. (1) The term
‘‘current plan year’’ means the plan
year after the notice year. Thus, for example, if the notice year is January 1,
2017 through December 31, 2017, then
the current plan year would be January 1, 2018 through December 31, 2018.
(2) An event described in paragraph
(b)(7) of this section is recognized as
‘‘taking effect’’ in the current plan
year if the effect of the event is taken
into account for the first time for funding under section 430 or 431 of the Internal Revenue Code, as applicable, in
such year.
(3) An event described in paragraph
(b)(7) of this section has a ‘‘material effect’’ if it results, or is projected to result, in an increase or decrease of five
percent or more in the value of assets
or liabilities from the valuation date of

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§ 2520.101–5

29 CFR Ch. XXV (7–1–19 Edition)

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the notice year. For this measurement,
calculate assets and liabilities in the
same manner as under paragraph (b)(2)
of this section.
(4) An event described in paragraph
(b)(7) of this section has a ‘‘material effect’’ if, in the judgment of the plan’s
enrolled actuary, the effect of the
event is considered material for purposes of the plan’s funding status under
section 430 or 431, as applicable, of the
Internal Revenue Code, without regard
to paragraph (g)(3) of this section.
(5) An event described in paragraph
(b)(7) of this section is ‘‘known’’ only if
it is known by the plan administrator
prior to 120 days before the due date of
the notice. Thus, if an event otherwise
described in paragraph (b)(7) first becomes known to a plan administrator
120 days or less before the due date of
a notice, the plan administrator is not
required to explain, or project the effect of, the event in that notice.
(6) The term ‘‘other known event’’ includes, but is not limited to, an extension of coverage under the existing
terms of the plan to a new group of employees; a plan merger, consolidation,
or spinoff pursuant to regulations
under section 414(l) of the Internal Revenue Code; or, a shutdown of any facility, plant, store, or such other similar
corporate event that creates immediate eligibility for benefits that would
not otherwise be immediately payable
for participants separating from service. The term does not include market
fluctuations.
(7) With respect to events described
in paragraph (g)(4) of this section, the
plan administrator may, instead of projecting the effect on plan liabilities to
the end of the current plan year, include an explanation why the event is
considered material by the enrolled actuary.
(8) Example. The following example illustrates the special rules and definitions of paragraph (g) of this section:
Example. Plan Y is a single-employer calendar year plan. Company X, the sponsor of
Plan Y, adopts an amendment on June 1,
2017, offering a subsidized early retirement
benefit to participants age 50 or older who
retire on or after September 1, 2017 and before March 1, 2018. The amendment increases
the liabilities of Plan Y by an amount greater than 5% of the value of Plan Y’s liabilities
on January 1, 2017. Company X does not

make an election under Code section 412(d)(2)
to accelerate recognition of the event for
funding. The amendment is taken into account for the first time under section 430 of
the Code as of the January 1, 2018 valuation
date. Therefore, the amendment is recognized as taking effect under the final rule in
2018. Since the amendment adopted on June
1, 2017, is known more than 120 days prior to
the April 30, 2018 due date of the 2017 funding
notice, the amendment must be disclosed in
the 2017 funding notice under paragraph
(b)(7) of the final regulations as a material
effect event taking effect in 2018 (i.e., the
current plan year).

(h) Model notices. (1) The appendices
to this section contain a model notice
for single-employer plans and a model
notice for multiemployer plans. These
models are intended to assist plan administrators in discharging their notice obligations under this section. Use
of a model notice is not mandatory.
However, subject to paragraph (h)(2) of
this section, use of a model notice will
be deemed to satisfy the requirements
of paragraphs (b)(1) through (b)(11) and
paragraph (c) of this section.
(2) To the extent a plan administrator elects to include in a model notice information described in paragraph (b)(12) of this section, such additional information must be consistent
with the style and format requirements
in paragraph (c) of this section.
(i) Notice year. For purposes of this
section, the term ‘‘notice year’’ means
the plan year to which the notice relates. For example, for a calendar year
plan that must furnish its 2010 funding
notice no later than the 120th day of
2011, the ‘‘notice year’’ is the 2010 plan
year.
(j) Alternative method of compliance for
furnishing notice to PBGC for certain single-employer plans. Notwithstanding
any other provision of this section, the
plan administrator of a single-employer plan is not required to furnish a
notice to the Pension Benefit Guaranty
Corporation annually if, based on the
data described in paragraph (b)(3)(i)(A)
of this section for the notice year, plan
liabilities do not exceed total plan assets by more than $50 million, provided
that the plan administrator furnishes
the latest available funding notice to
the Pension Benefit Guaranty Corporation within 30 days of a written request.

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Employee Benefits Security Admin., Labor

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(k) Alternative method of compliance
for multiemployer plans terminated by
mass withdrawal. (1) Notwithstanding
any other provision of this section, for
plan years beginning after the date
specified in section 4041A(b)(2) of the
Act, an alternative method of compliance is available in the case of a multiemployer plan that terminates as a result of the withdrawal of every employer from the plan or the cessation of
the obligation of all employers to contribute under the plan, as described in
section 4041A(a)(2) of the Act. Under
this alternative method, the plan administrator shall furnish annually to
each person described in paragraph
(f)(1) through (3) of this section a notice that complies with paragraphs (c),
(d), (e), and (k)(2) of this section.
(2) The notice includes:
(i) A statement of the fair market
value of the plan’s assets as of the last
day of the notice year, and as of the
last day of each of the two preceding
plan years as reported in the annual report filed under section 104(a) of the
Act for each such preceding plan year;
(ii) A statement of the amount of
benefit payments made during the notice year and each of the two preceding
plan years;
(iii) If a notice has not already been
furnished pursuant to 29 CFR 4281.32, a
statement that benefits may be reduced pursuant to section 4281(c) of the
Act and a summary of the rules governing such reductions;
(iv) A summary of the rules governing insolvency, including the limitations on benefit payments, pursuant
to paragraph (b)(8)(ii) of this section;
(v) The information described in
paragraphs (b)(1), (b)(9), and (b)(10) of
this section; and

§ 2520.101–5

(vi) Any additional information that
the plan administrator elects to include, subject to the requirements of
paragraph (b)(12) of this section.
(l) Alternative method of compliance for
Internal Revenue Code section 412(e)(3)
plans. (1) Notwithstanding any other
provision of this section, an alternative
method of compliance is available in
the case of an insurance contract plan
described in section 412(e)(3) of the Internal Revenue Code of 1986. Under this
alternative method, the plan administrator shall furnish annually to each
person described in paragraph (f) of
this section a notice that complies
with paragraphs (c), (d), (e), and (l)(2)
of this section.
(2) The notice includes:
(i) An explanation that the plan is
funded exclusively by an insurance
contract or contracts, that such contract or contracts provide for the benefit payments to participants and beneficiaries, that such benefit payments
are guaranteed by a licensed insurance
company or companies, and the name
of the insurance company or companies;
(ii) A statement whether, as of the
last day of the notice year, there were
any delinquent premiums and, if so,
the amount and date of the delinquency and the effect on the plan and
on participants and beneficiaries in the
event of a policy lapse;
(iii) The information described in
paragraph (b)(1), (b)(9), and (b)(10) of
this section; and
(iv) Any additional information that
the plan administrator elects to include, provided that such information
meets the standard in paragraph (b)(12)
of this section.
(m) CSEC plans. [Reserved]

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§ 2520.101–5

29 CFR Ch. XXV (7–1–19 Edition)

404

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APPENDIX A TO § 2520.101–5—SINGLE-EMPLOYER PLAN MODEL ANNUAL FUNDING
NOTICE

§ 2520.101–5

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Employee Benefits Security Admin., Labor

§ 2520.101–5

29 CFR Ch. XXV (7–1–19 Edition)

3. Plan Liabilities
4. At-Risk Liabilities
5. Funding Target
Attainment Percentage
(2d)/(3)

(insert amount]
[insert amount]
[insert percentage]

[insert amount]
[insert amount]
[insert percentage]

[insert amount]
(insert amount]
[insert percentage]

{Instructions: Report Valuation Date entries in accordance with section 303(g)(2) of ERISA. Report Total Plan Assets in
accordance with section 303(g)(3) of ERISA. Report credit balances (i.e., funding standard carryover balance and prefunding
balance) in accordance with section 303(j) of ERISA. Report Net Plan Assets, Plan Liabilities (i.e., funding target), and Funding
Target Attainment Percentage in accordance with section 303(d)(2) of ERISA. The amount reported as "Plan Liabilities" should
be the funding target determined without regard to at-risk assumptions, even if the plan is in at-risk status. At-Risk Liabilities
are determined under section 303(i) of ERISA (taking into account section 303(i)(S) of ERISA). Report At-Risk Liabilities for
any year covered by this chart in which the plan was in "at-risk" status within the meaning of section 303(i) of ERISA, only if
At-Risk Liabilities are greater than Plan Liabilities; otherwise delete the entire row designated as number 4. Round off all
amounts in this chart to the nearest dollar.}

Plan Assets and Credit Balances
The chart above shows certain "credit balances" called the Funding Standard Carryover Balance
and Prefunding Balance. A plan might have a credit balance, for example, if in a prior year an
employer contributed money to the plan above the minimum level required by law. Generally,
an employer may credit the excess money toward the minimum level of contributions required
by law that it must make in future years. Plans must subtract these credit balances from Total
Plan Assets to calculate their Funding Target Attainment Percentage.
{Instructions: Include the preceding discussion, entitled Plan Assets and Credit Balances, only where such balances exist.}

Plan Liabilities
Plan Liabilities in line 3 of the chart above is an estimate of the amount of assets the Plan needs
on the Valuation Date to pay for promised benefits under the Plan.
At-Risk Liabilities
The law considers a plan to be in "at risk" status if its funding target attainment percentage for
the prior plan year was below a legal threshold. The sponsor of an at-risk plan must make
certain assumptions and contribute more money to that plan. For example, plans in" at-risk"
status must assume that all workers eligible to retire in the next 10 years will do so as soon as
they can, and that they will take their distribution in whatever form would create the highest
cost to the plan, without regard to whether those workers actually do so. The additional
contributions that result from "at-risk" status may then remove a plan from this status. The
Plan was in "at-risk" status in [enter year or years covered by the chart above]. The At-Risk
Liabilities row in the chart above shows the increased liabilities resulting from" at-risk" status.
{Instructions: Include the preceding discussion, entitled At-Risk Liabilities, only in the case of a plan required to report
At-Risk Liabilities. Delete the entire row designated as number 4 in the chart above if the At-Risk Liabilities
discussion is not included in the notice.}

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Year-End Assets and Liabilities

§ 2520.101–5

407

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Employee Benefits Security Admin., Labor

§ 2520.101–5

29 CFR Ch. XXV (7–1–19 Edition)

Asset Allocations
Percentage
1. Cash (interest bearing and non-interest bearing)
2. U.S. Government securities
3. Corporate debt instruments (other than employer securities):
Preferred
All other
4. Corporate stocks (other than employer securities):
Preferred
Common
5. Partnership/ joint venture interests
6. Real estate (other than employer real property)
7. Loans (other than to participants)
8. Participant loans
9. Value of interest in common/ collective trusts
10. Value of interest in pooled separate accounts
11. Value of interest in master trust investment accounts
12. Value of interest in 103-12 investment entities
13. Value of interest in registered investment companies (e.g., mutual funds)
14. Value of funds held in insurance co. general account (unallocated contracts)
15. Employer-related investments:
Employer Securities
Employer real property
16. Buildings and other property used in plan operation
17. Other

For information about the Plan's investment in any of the following types of investments common/ collective trusts, pooled separate accounts, master trust investment accounts, or 10312 investment entities - contact [insert the name, telephone number, email address or mailing address
of the plan administrator or designated representative].
{Instructions: Percentages must totallOO%. If a plan holds an interest in one or more of the direct filing entities (DFEs) noted
above, i.e., MTIAs, CCTs, PSAs, or 103-12IEs and the administrator does not break out the DFE's investments among the other
asset classes, immediately following the asset allocation clu!rt include the paragraph above informing recipients how to obtain
more information regarding the plan's DFE investments (e.g., the plan's ScheduleD and/or the DFE's Schedule H). If a plan
does not hold an interest in a DFE or the plan administrator breaks out the investments of all DFEs among the other asset
classes, do not include the above paragraph. If the administrator knows the actual asset allocation of an MTIA, the MTIA entry
(line 11) should not be competed and the investments of the MTIA should be reflected in the relevant asset classes.}

Alternative 2
Asset Allocations
Stocks
Investment grade debt instruments
High-yield debt instruments
Real estate
Other

Percentage:

{Instructions: Percentages must totallOO%. Follow the instructions for the latest ScheduleR to Form 5500 to allocate
investments to one of the above asset classes.

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Events Having a Material Effect on Assets or Liabilities

§ 2520.101–5

409

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Employee Benefits Security Admin., Labor

§ 2520.101–5

29 CFR Ch. XXV (7–1–19 Edition)

Second, if the plan is not fully-funded, the employer may apply for a distress termination. To
do so, however, the employer must be in financial distress and prove to a bankruptcy court or
to the PBGC that the employer cannot remain in business unless the plan is terminated. If the
application is granted, the PBGC will take over the plan as trustee and pay plan benefits, up to
the legal limits, using plan assets and PBGC guarantee funds.
Under certain circumstances, the PBGC may take action on its own to end a pension plan. Most
terminations initiated by the PBGC occur when the PBGC determines that plan termination is
needed to protect the interests of plan participants or of the PBGC insurance program. The
PBGC can do so if, for example, a plan does not have enough money to pay benefits currently
due.
Benefit Payments Guaranteed by the PBGC
When the PBGC takes over a plan, it pays pension benefits through its insurance program.
Only benefits that you have earned a right to receive and that cannot be forfeited (called vested
benefits) are guaranteed. Most participants and beneficiaries receive all of the pension benefits
they would have received under their plan, but some people may lose certain benefits that are
not guaranteed.
The amount of benefits that PBGC guarantees is determined as of the plan termination date.
However, if a plan terminates during a plan sponsor's bankruptcy, then the amount guaranteed
is determined as of the date the sponsor entered bankruptcy.
The PBGC maximum benefit guarantee is set by law and is updated each calendar year. For a
plan with a termination date or sponsor bankruptcy date, as applicable in [insert current calendar
year], the maximum guarantee is [insert amount from PBGC web site, www.pbgc.gov, applicable for
the current calendar year] per month, or [insert amount from PBGC web site, www.pbgc.gov, applicable
for the current calendar year] per year, for a benefit paid to a 65-year-old retiree with no survivor
benefit. If a plan terminates during a plan sponsor's bankruptcy, the maximum guarantee is
fixed as of the calendar year in which the sponsor entered bankruptcy. The maximum
guarantee is lower for an individual who begins receiving benefits from PBGC before age 65
reflecting the fact that younger retirees are expected to receive more monthly pension checks
over their lifetimes. [if the plan does not provide for commencement of benefits before age 65, you may
omit this sentence.] Similarly, the maximum guarantee is higher for an individual who starts
receiving benefits from PBGC after age 65. The maximum guarantee by age can be found on
PBGC's website, www.pbgc.gov. The guaranteed amount is also reduced if a benefit will be
provided to a survivor of the plan participant.
The PBGC guarantees "basic benefits" earned before a plan is terminated, which include
[Include the following guarantees that apply to benefits available under the plan.]:
pension benefits at normal retirement age;
most early retirement benefits;
annuity benefits for survivors of plan participants; and
disability benefits for a disability that occurred before the date the plan terminated or the date
the sponsor entered bankruptcy, as applicable.

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•
•
•
•

§ 2520.101–5

411

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Employee Benefits Security Admin., Labor

§ 2520.101–5

29 CFR Ch. XXV (7–1–19 Edition)

412

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APPENDIX B TO § 2520.101–5—MULTIEMPLOYER PLAN MODEL ANNUAL FUNDING NOTICE

§ 2520.101–5

413

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Employee Benefits Security Admin., Labor

§ 2520.101–5

29 CFR Ch. XXV (7–1–19 Edition)

specified period of time. The plan sponsor of a plan in critical and declining status may apply
for approval to amend the plan to reduce current and future payment obligations to
participants and beneficiaries.
{Instructions: Select and complete the appropriate option below.}

{Option one}
The Plan was not in endangered, critical, or critical and declining status in the Plan Year.
{Option two}
The Plan was in [insert "endangered" or "critical"] status in the Plan Year ending [insert last day
of Plan Year] because [insert summary description of why plan was in this status based on statutory
factors]. In an effort to improve the Plan's funding situation, the trustees adopted [insert
summary of the plan's funding improvement or rehabilitation plan, including when adopted and expected
duration, and a description of any modification or update to the plan adopted during the plan year to
which the notice relates]. You may get a copy of the Plan's [insert "funding improvement plan" or
"rehabilitation plan"], any update to such plan and the actuarial and financial data that
demonstrate any action taken by the Plan toward fiscal improvement. You may get this
information by contacting the plan administrator. [If applicable, insert: "Or you may obtain this
information at [insert Intranet address of plan sponsor (or plan administrator on behalf of the plan
sponsor)].]
{Option three}
The Plan was in critical and declining status in the Plan Year ending [insert last day of Plan Year]
because [insert summary description of why plan was in this status based on statutory factors]. The
Plan is projected to be insolvent in the [insert plan year] Plan Year. Such insolvency may result
in benefit reductions. In an effort to improve the Plan's funding situation, the trustees adopted
a rehabilitation plan on [insert date]. The rehabilitation plan [Insert a summary of the plan's
rehabilitation plan, including expected duration and a description of any modification or update to the
plan adopted during the plan year to which the notice relates]. [Insert the following if applicable: The
plan sponsor has taken the following legally permitted actions to prevent insolvency: [Insert
explanation of actions]." You may get a copy of the Plan's rehabilitation plan, any update to such
plan and the actuarial and financial data that demonstrate any action taken by the Plan toward
fiscal improvement. You may get this information by contacting the plan administrator. [If
applicable, insert: "Or you may obtain this information at [insert Intranet address of plan sponsor (or
plan administrator on behalf of the plan sponsor)].]
If the Plan is in endangered, critical, or critical and declining status for the plan year ending

[insert the last day of the plan year following the Plan Year], separate notification of that status has or
will be provided.
Participant Information

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The total number of participants and beneficiaries covered by the Plan on the valuation date
was [insert number]. Of this number, [insert number] were current employees, [insert number]
were retired and receiving benefits, and [insert number] were retired or no longer working for
the employer and have a right to future benefits.

§ 2520.101–5

415

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Employee Benefits Security Admin., Labor

§ 2520.101–5

29 CFR Ch. XXV (7–1–19 Edition)

{Instructions: Percentages must totallOO%. If a plan holds an interest in one or more of the direct filing entities (DFEs) noted
above, i.e., CCTs, PSAs, or 103-12IEs and the administrator does not break out the DFE's investments among the other asset
classes, immediately following the asset allocation chart include the paragraph abave informing recipients how to obtain more
information regarding the plan's DFE investments (e.g., the plan's ScheduleD and/or the DFE's Schedule H). If a plan does not
hold an interest in a DFE or the administrator breaks out the investments of all DFEs among the other asset classes, do not
include the abave paragraph.

Alternative 2
Asset Allocations
Stocks
Investment grade debt instruments
High-yield debt instruments
Real estate
Other

Percentage:

{Instructions: Percentages must totallOO%. Follow the instructions in the latest ScheduleR to Form 5500 to allocate
investments to one of the above asset classes.

Events Having a Material Effect on Assets or Liabilities
By law this notice must contain a written explanation of new events that have a material effect
on plan liabilities or assets. This is because such events can significantly impact the funding
condition of a plan. For the plan year beginning on [insert the first day of the current plan year (i.e.,
the year after the notice year)] and ending on [insert the last day of the current plan year], the Plan
expects the following events to have such an effect: [Insert explanation 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 current plan year, as well as a projection to the
end of the current plan of the effect of the amendment, scheduled increase or reduction, or event on plan
liabilities].
{Instructions: Include the preceding discussion, entitled Events having a Material Effect on Assets or Liabilities, only if and to
the extent applicable.}

Right to Request a Copy of the Annual Report

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Pension plans must file annual reports with the US Department of Labor. The report is called
the "Form 5500." These reports contain financial and other information. You may obtain an
electronic copy of your Plan's annual report by going to www.efast.dol.gov and using the search
tool. Annual reports also are available from the US Department of Labor, Employee Benefits
Security Administration's Public Disclosure Room at 200 Constitution Avenue, NW, Room N1513, Washington, DC 20210, or by calling 202.693.8673. Or you may obtain a copy of the Plan's
annual report by making a written request to the plan administrator. [If the plan's annual report
is available on an Intranet website maintained by the plan sponsor (or plan administrator on behalf of the
plan sponsor), modify the preceding sentence to include a statement that the annual report also may be
obtained through that website and include the website address.] Annual reports do not contain
personal information, such as the amount of your accrued benefit. You may contact your plan

§ 2520.101–5

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Employee Benefits Security Admin., Labor

§ 2520.101–6

29 CFR Ch. XXV (7–1–19 Edition)

[80 FR 5645, Feb. 2, 2015]

(a) In general. For purposes of compliance with the requirements of section
101(k) of the Employee Retirement Income Security Act of 1974, as amended
(the Act), 29 U.S.C. 1001, et seq., the administrator of a multiemployer pension plan shall, in accordance with the
requirements of this section, furnish
copies of reports and applications described in paragraph (c) of this section
to plan participants, beneficiaries, employee representatives and contributing employers, described in paragraph (e) of this section.
(b) Obligation to furnish. (1) Except as
provided in paragraph (d) of this section, the administrator of a multiemployer pension plan shall, not later
than 30 days after receipt of a written
request for a report(s) or application(s)
described in paragraph (c) of this section from a plan participant, beneficiary, employee representative or
contributing employer described in
paragraph (e) of this section, furnish
the requested document or documents
to the requester.
(2) The plan administrator shall furnish reports and applications pursuant

to paragraph (b)(1) of this section in a
manner consistent with the requirements of 29 CFR 2520.104b–1, including
paragraph (c) of that section relating
to the use of electronic media.
(3) The plan administrator may impose a reasonable charge to cover the
costs of furnishing documents pursuant
to this section, but in no event may
such charge exceed—
(i) The lesser of: (A) The actual cost
to the plan for the least expensive
means of acceptable reproduction of
the document(s) or (B) 25 cents per
page; plus
(ii) The cost of mailing or delivery of
the document.
(c) Documents to be furnished. For purposes of paragraph (a) of this section,
and subject to paragraph (d) of this section, a plan participant, beneficiary,
employee representative or contributing employer described in paragraph
(e) of this section, shall be entitled to
request and receive a copy of any:
(1) Periodic actuarial report. For this
purpose the term ‘‘periodic actuarial
report’’ means any—
(i) Actuarial report prepared by an
actuary of the plan and received by the
plan at regularly scheduled, recurring
intervals; and
(ii) Study, test (including a sensitivity test), document, analysis or

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ER02FE15.030

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§ 2520.101–6 Multiemployer
pension
plan information made available on
request.

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Employee Benefits Security Admin., Labor
other information (whether or not
called a ‘‘report’’) received by the plan
from an actuary of the plan that depicts alternative funding scenarios
based on a range of alternative actuarial assumptions, whether or not such
information is received by the plan at
regularly scheduled, recurring intervals.
(2) Quarterly, semi-annual, or annual
financial report prepared for the plan
by any plan investment manager or advisor (without regard to whether such
advisor is a fiduciary within the meaning of section 3(21) of the Act) or other
fiduciary; and
(3) Application filed with the Secretary of the Treasury requesting an
extension under section 304 of the Act
or section 431(d) of the Internal Revenue Code of 1986 and the determination of such Secretary pursuant to
such application.
(d) Limitations and exceptions. For
purposes of this section, reports and
applications (and related determinations) required to be disclosed under
this section shall not include:
(1) Any report or application that
was furnished to the requester within
the 12-month period immediately preceding the date on which the request is
received by the plan;
(2) Any report or application that, as
of the date on which the request is received by the plan, has been in the
plan’s possession for 6 years or more;
(3) Any report described in paragraph
(c)(1) and (c)(2) of this section that, as
of the date on which the request is received by the plan, has not been in the
plan’s possession for at least 30 days;
except that, if the plan administrator
elects not to furnish any such document, the administrator shall furnish a
notice, not later than 30 days after the
date on which request is received by
the plan, informing the requester of
the existence of the document and the
earliest date on which the document
can be furnished by the plan.
(4) Any information or data which
served as the basis for any report or application described in paragraph (c) of
this section, although nothing herein
shall limit any other right that a person may have to review or obtain such
information under the Act; or

§ 2520.101–6

(5)(i) Any information within a report or application that the plan administrator reasonably determines to
be either:
(A) individually identifiable information with respect to any plan participant, beneficiary, employee, fiduciary,
or contributing employer, except that
such limitation shall not apply to an
investment manager, adviser, or other
person (other than an employee of the
plan) preparing a financial report described in paragraph (c)(2) of this section; or
(B) proprietary information regarding the plan, any contributing employer, or entity providing services to
the plan.
(ii) For purposes of paragraph
(d)(5)(i)(B) of this section, the term
‘‘proprietary information’’ means trade
secrets and other non-public information (e.g., processes, procedures, formulas,
methodologies,
techniques,
strategies) that, if disclosed by the
plan, may cause, or increase a reasonable risk of, financial harm to the plan,
a contributing employer, or entity providing services to the plan.
(iii) The plan administrator may
treat information relating to a contributing employer or entity providing
services to the plan as other than proprietary if the contributing employer
or service provider has not identified
such information as proprietary.
(iv) A plan administrator shall inform the requester if the plan administrator withholds any information described in paragraph (d)(5)(i) of this
section from a report or application requested under paragraph (b) of this section.
(e) Persons entitled to request documents. For purposes of this section, a
plan participant, beneficiary, employee
representative or contributing employer entitled to request and receive
reports and applications includes:
(1) Any participant within the meaning of section 3(7) of the Act;
(2) Any beneficiary receiving benefits
under the plan;
(3) Any labor organization representing participants under the plan;
(4) Any employer that is a party to
the collective bargaining agreement(s)
pursuant to which the plan is maintained or who otherwise may be subject

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§ 2520.102–1

29 CFR Ch. XXV (7–1–19 Edition)

to withdrawal liability pursuant to section 4203 of the Act.
[75 FR 9341, Mar. 2, 2010]

Subpart B—Contents of Plan Descriptions and Summary Plan
Descriptions

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§ 2520.102–1

[Reserved]

§ 2520.102–2 Style and format of summary plan description.
(a) Method of presentation. The summary plan description shall be written
in a manner calculated to be understood by the average plan participant
and shall be sufficiently comprehensive
to apprise the plan’s participants and
beneficiaries of their rights and obligations under the plan. In fulfilling these
requirements, the plan administrator
shall exercise considered judgment and
discretion by taking into account such
factors as the level of comprehension
and education of typical participants
in the plan and the complexity of the
terms of the plan. Consideration of
these factors will usually require the
limitation or elimination of technical
jargon and of long, complex sentences,
the use of clarifying examples and illustrations, the use of clear cross references and a table of contents.
(b) General format. The format of the
summary plan description must not
have the effect to misleading, misinforming or failing to inform participants and beneficiaries. Any description of exception, limitations, reductions, and other restrictions of plan
benefits shall not be minimized, rendered obscure or otherwise made to appear unimportant. Such exceptions,
limitations, reductions, or restrictions
of plan benefits shall be described or
summarized in a manner not less
prominent than the style, captions,
printing type, and prominence used to
describe or summarize plan benefits.
The advantages and disadvantages of
the plan shall be presented without either exaggerating the benefits or minimizing the limitations. The description
or summary of restrictive plan provisions need not be disclosed in the summary plan description in close conjunction with the description or summary
of benefits, provided that adjacent to
the benefit description the page on

which the restrictions are described is
noted.
(c) Foreign languages. In the case of
either—
(1) A plan that covers fewer than 100
participants at the beginning of a plan
year, and in which 25 percent or more
of all plan participants are literate
only in the same non-English language,
or
(2) A plan which covers 100 or more
participants at the beginning of the
plan year, and in which the lesser of (i)
500 or more participants, or (ii) 10% or
more of all plan participants are literate only in the same non-English language, so that a summary plan description in English would fail to inform
these participants adequately of their
rights and obligations under the plan,
the plan administrator for such plan
shall provide these participants with
an English-language summary plan description which prominently displays a
notice, in the non-English language
common to these participants, offering
them assistance. The assistance provided need not involve written materials, but shall be given in the nonEnglish language common to these participants and shall be calculated to
provide them with a reasonable opportunity to become informed as to their
rights and obligations under the plan.
The notice offering assistance contained in the summary plan description
shall clearly set forth in the nonEnglish language common to such participants offering them assistance. The
assistance provided need not involve
written materials, but shall be given in
the non-English language common to
these participants and shall be calculated to provide them with a reasonable opportunity to become informed
as to their rights and obligations under
the plan. The notice offering assistance
contained in the summary plan description shall clearly set forth in the
non-English language common to such
participants the procedures they must
follow in order to obtain such assistance.
Example. Employer A maintains a pension
plan which covers 1000 participants. At the
beginning of a plan year five hundred of Employer A’s covered employees are literate
only in Spanish, 101 are literate only in Vietnamese, and the remaining 399 are literate in

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Employee Benefits Security Admin., Labor
English. Each of the 1000 employees receives
a summary plan description in English, containing an assistance notice in both Spanish
and Vietnamese stating the following:
‘‘This booklet contains a summary in
English of your plan rights and benefits
under Employer A Pension Plan. If you have
difficulty understanding any part of this
booklet, contact Mr. John Doe, the plan administrator, at his office in Room 123, 456
Main St., Anywhere City, State 20001. Office
hours are from 8:30 A.M. to 5:00 P.M. Monday
through Friday. You may also call the plan
administrator’s office at (202) 555–2345 for assistance.’’

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[42 FR 37180, July 19, 1977]

§ 2520.102–3 Contents of summary plan
description.
Section 102 of the Act specifies information that must be included in the
summary plan description. The summary plan description must accurately
reflect the contents of the plans as of
the date not earlier than 120 days prior
to the date such summary plan description is disclosed. The following information shall be included in the summary plan description of both employee welfare benefit plans and employee pension benefit plans, except as
stated otherwise in paragraphs (j)
through (n):
(a) The name of the plan, and, if different, the name by which the plan is
commonly known by its participants
and beneficiaries;
(b) The name and address of—
(1) In the case of a single employer
plan, the employer whose employees
are covered by the plan,
(2) In the case of a plan maintained
by an employee organization for its
members, the employee organization
that maintains the plan,
(3) In the case of a collectively-bargained plan established or maintained
by one or more employers and one or
more employee organizations, the association, committee, joint board of
trustees, parent or most significantly
employer of a group of employers all of
which contribute to the same plan, or
other similar representative of the parties who established or maintain the
plan, as well as
(i) A statement that a complete list
of the employers and employee organizations sponsoring the plan may be obtained by participants and beneficiaries upon written request to the

§ 2520.102–3

plan administrator, and is available for
examination by participants and beneficiaries, as required by §§ 2520.104b–1
and 2520.104b–30; or
(ii) A statement that participants
and beneficiaries may receive from the
plan administrator, upon written request, information as to whether a particular employer or employee organization is a sponsor of the plan and, if the
employer or employee organization is a
plan sponsor, the sponsor’s address.
(4) In the case of a plan established or
maintained by two or more employers,
the association, committee, joint board
of trustees, parent or most significant
employer of a group of employers all of
which contribute to the same plan, or
other similar representative of the parties who established or maintain the
plan, as well as
(i) A statement that a complete list
of the employers sponsoring the plan
may be obtained by participants and
beneficiaries upon written request to
the plan administrator, and is available for examination by participants
and beneficiaries, as required by
§§ 2520.104b–1 and 2520.104b–30, or,
(ii) A statement that participants
and beneficiaries may receive from the
plan administrator, upon written request, information as to whether a particular employer is a sponsor of the
plan and, if the employer is a plan
sponsor, the sponsor’s address.
(c) The employer identification number (EIN) assigned by the Internal Revenue Service to the plan sponsor and
the plan number assigned by the plan
sponsor. (For further detailed explanation, see the instructions to the plan
description Form EBS–1 and ‘‘Identification Numbers Under ERISA’’ (Publ.
1004), published jointly by DOL, IRS,
and PBGC);
(d) The type of pension or welfare
plan, e.g. pension plans—defined benefit, defined contribution, 401(k), cash
balance, money purchase, profit sharing, ERISA section 404(c) plan, etc.,
and for welfare plans—group health
plans, disability, pre-paid legal services, etc.
(e) The type of administration of the
plan, e.g., contract administration, insurer administration, etc.;
(f) The name, business address and
business telephone number of the plan

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§ 2520.102–3

29 CFR Ch. XXV (7–1–19 Edition)

administrator as that term is defined
by section 3(16) of the Act;
(g) The name of the person designated as agent for service of legal
process, and the address at which process may be served on such person, and
in addition, a statement that service of
legal process may be made upon a plan
trustee or the plan administrator;
(h) The name, title and address of the
principal place of business of each
trustee of the plan;
(i) If a plan is maintained pursuant
to one or more collective bargaining
agreements, a statement that the plan
is so maintained, and that a copy of
any such agreement may be obtained
by participants and beneficiaries upon
written request to the plan administrator, and is available for examination
by participants and beneficiaries, as required by §§ 2520.104b–1 and 2520.104b–30.
For the purpose of this paragraph, a
plan is maintained pursuant to a collective bargaining agreement if such
agreement controls any duties, rights
or benefits under the plan, even though
such agreement has been superseded in
part for other purposes;
(j) The plan’s requirements respecting eligibility for participation and for
benefits. The summary plan description shall describe the plan’s provisions
relating to eligibility to participate in
the plan and the information identified
in paragraphs (j)(1), (2) and (3) of this
section, as appropriate.
(1) For employee pension benefit
plans, it shall also include a statement
describing the plan’s normal retirement age, as that term is defined in
section 3(24) of the Act, and a statement describing any other conditions
which must be met before a participant
will be eligible to receive benefits.
Such plan benefits shall be described or
summarized. In addition, the summary
plan description shall include a description of the procedures governing
qualified domestic relations order
(QDRO) determinations or a statement
indicating that participants and beneficiaries can obtain, without charge, a
copy of such procedures from the plan
administrator.
(2) For employee welfare benefit
plans, it shall also include a statement
of the conditions pertaining to eligibility to receive benefits, and a de-

scription or summary of the benefits.
In the case of a welfare plan providing
extensive schedules of benefits (a group
health plan, for example), only a general description of such benefits is required if reference is made to detailed
schedules of benefits which are available without cost to any participant or
beneficiary who so requests. In addition, the summary plan description
shall include a description of the procedures governing qualified medical child
support order (QMCSO) determinations
or a statement indicating that participants and beneficiaries can obtain,
without charge, a copy of such procedures from the plan administrator.
(3) For employee welfare benefit
plans that are group health plans, as
defined in section 733(a)(1) of the Act,
the summary plan description shall include a description of: any cost-sharing
provisions,
including
premiums,
deductibles, coinsurance, and copayment amounts for which the participant or beneficiary will be responsible;
any annual or lifetime caps or other
limits on benefits under the plan; the
extent to which preventive services are
covered under the plan; whether, and
under what circumstances, existing
and new drugs are covered under the
plan; whether, and under what circumstances, coverage is provided for
medical tests, devices and procedures;
provisions governing the use of network providers, the composition of the
provider network, and whether, and
under what circumstances, coverage is
provided for out-of-network services;
any conditions or limits on the selection of primary care providers or providers of speciality medical care; any
conditions or limits applicable to obtaining emergency medical care; and
any
provisions
requiring
preauthorizations or utilization review
as a condition to obtaining a benefit or
service under the plan. In the case of
plans with provider networks, the listing of providers may be furnished as a
separate document that accompanies
the plan’s SPD, provided that the summary plan description contains a general description of the provider network and provided further that the
SPD contains a statement that provider lists are furnished automatically,

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Employee Benefits Security Admin., Labor
without charge, as a separate document.
(k) In the case of an employee pension benefit plan, a statement describing any joint and survivor benefits provided under the plan, including any requirement that an election be made as
a condition to select or reject the joint
and survivor annuity;
(l) For both pension and welfare benefit plans, a statement clearly identifying circumstances which may result
in disqualification, ineligibility, or denial, loss, forfeiture, suspension, offset,
reduction, or recovery (e.g., by exercise
of
subrogation
or
reimbursement
rights) of any benefits that a participant or beneficiary might otherwise
reasonably expect the plan to provide
on the basis of the description of benefits required by paragraphs (j) and (k)
of this section. In addition to other required information, plans must include
a summary of any plan provisions governing the authority of the plan sponsors or others to terminate the plan or
amend or eliminate benefits under the
plan and the circumstances, if any,
under which the plan may be terminated or benefits may be amended or
eliminated; a summary of any plan provisions governing the benefits, rights
and obligations of participants and
beneficiaries under the plan on termination of the plan or amendment or
elimination of benefits under the plan,
including, in the case of an employee
pension benefit plan, a summary of any
provisions relating to the accrual and
the vesting of pension benefits under
the plan upon termination; and a summary of any plan provisions governing
the allocation and disposition of assets
of the plan upon termination. Plans
also shall include a summary of any
provisions that may result in the imposition of a fee or charge on a participant or beneficiary, or on an individual
account thereof, the payment of which
is a condition to the receipt of benefits
under the plan. The foregoing summaries shall be disclosed in accordance
with the requirements under 29 CFR
2520.102–2(b).
(m) For an employee pension benefit
plan the following information:
(1) If the benefits of the plan are not
insured under title IV of the Act, a

§ 2520.102–3

statement of this fact, and reason for
the lack of insurance; and
(2) If the benefits of the plan are insured under title IV of the Act, a statement of this fact, a summary of the
pension benefit guaranty provisions of
title IV, and a statement indicating
that further information on the provisions of title IV can be obtained from
the plan administrator or the Pension
Benefit Guaranty Corporation. The address of the PBGC shall be provided.
(3) A summary plan description for a
single-employer plan will be deemed to
comply with paragraph (m)(2) of this
section if it includes the following
statement:
Your pension benefits under this plan are
insured by the Pension Benefit Guaranty
Corporation (PBGC), a federal insurance
agency. If the plan terminates (ends) without
enough money to pay all benefits, the PBGC
will step in to pay pension benefits. Most
people receive all of the pension benefits
they would have received under their plan,
but some people may lose certain benefits.
The PBGC guarantee generally covers: (1)
Normal and early retirement benefits; (2)
disability benefits if you become disabled before the plan terminates; and (3) certain benefits for your survivors.
The PBGC guarantee generally does not
cover: (1) Benefits greater than the maximum guaranteed amount set by law for the
year in which the plan terminates; (2) some
or all of benefit increases and new benefits
based on plan provisions that have been in
place for fewer than 5 years at the time the
plan terminates; (3) benefits that are not
vested because you have not worked long
enough for the company; (4) benefits for
which you have not met all of the requirements at the time the plan terminates; (5)
certain early retirement payments (such as
supplemental benefits that stop when you
become eligible for Social Security) that result in an early retirement monthly benefit
greater than your monthly benefit at the
plan’s normal retirement age; and (6) nonpension benefits, such as health insurance,
life insurance, certain death benefits, vacation pay, and severance pay.
Even if certain of your benefits are not
guaranteed, you still may receive some of
those benefits from the PBGC depending on
how much money your plan has and on how
much the PBGC collects from employers.
For more information about the PBGC and
the benefits it guarantees, ask your plan administrator or contact the PBGC’s Technical
Assistance Division, 1200 K Street N.W.,
Suite 930, Washington, D.C. 20005–4026 or call
202–326–4000 (not a toll-free number). TTY/
TDD users may call the federal relay service

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§ 2520.102–3

29 CFR Ch. XXV (7–1–19 Edition)

toll-free at 1–800–877–8339 and ask to be connected to 202–326–4000. Additional information about the PBGC’s pension insurance
program is available through the PBGC’s
website
on
the
Internet
at
http://
www.pbgc.gov.

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(4) A summary plan description for a
multiemployer plan will be deemed to
comply with paragraph (m)(2) of this
section if it includes the following
statement:
Your pension benefits under this multiemployer plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal
insurance agency. A multiemployer plan is a
collectively bargained pension arrangement
involving two or more unrelated employers,
usually in a common industry.
Under the multiemployer plan program,
the PBGC provides financial assistance
through loans to plans that are insolvent. A
multiemployer plan is considered insolvent
if the plan is unable to pay benefits (at least
equal to the PBGC’s guaranteed benefit
limit) when due.
The maximum benefit that the PBGC guarantees is set by law. Under the multiemployer program, the PBGC guarantee equals
a participant’s years of service multiplied by
(1) 100% of the first $5 of the monthly benefit
accrual rate and (2) 75% of the next $15. The
PBGC’s maximum guarantee limit is $16.25
per month times a participant’s years of
service. For example, the maximum annual
guarantee for a retiree with 30 years of service would be $5,850.
The PBGC guarantee generally covers: (1)
Normal and early retirement benefits; (2)
disability benefits if you become disabled before the plan becomes insolvent; and (3) certain benefits for your survivors.
The PBGC guarantee generally does not
cover: (1) Benefits greater than the maximum guaranteed amount set by law; (2) benefit increases and new benefits based on plan
provisions that have been in place for fewer
than 5 years at the earlier of: (i) The date
the plan terminates or (ii) the time the plan
becomes insolvent; (3) benefits that are not
vested because you have not worked long
enough; (4) benefits for which you have not
met all of the requirements at the time the
plan becomes insolvent; and (5) non-pension
benefits, such as health insurance, life insurance, certain death benefits, vacation pay,
and severance pay.
For more information about the PBGC and
the benefits it guarantees, ask your plan administrator or contact the PBGC’s Technical
Assistance Division, 1200 K Street, N.W.,
Suite 930, Washington, D.C. 20005–4026 or call
202–326–4000 (not a toll-free number). TTY/
TDD users may call the federal relay service
toll-free at 1–800–877–8339 and ask to be connected to 202–326–4000. Additional informa-

tion about the PBGC’s pension insurance
program is available through the PBGC’s
website
on
the
Internet
at
http://
www.pbgc.gov.

(n) In the case of an employee pension benefit plan, a description and explanation of the plan provisions for determining years of service for eligibility to participate, vesting, and
breaks in service, and years of participation for benefit accrual. The description shall state the service required to
accrue full benefits and the manner in
which accrual of benefits is prorated
for employees failing to complete full
service for a year.
(o) In the case of a group health plan,
within the meaning of section 607(1) of
the Act, subject to the continuation
coverage provisions of Part 6 of Title I
of ERISA, a description of the rights
and obligations of participants and
beneficiaries with respect to continuation coverage, including, among other
things, information concerning qualifying events and qualified beneficiaries, premiums, notice and election requirements and procedures, and
duration of coverage.
(p) The sources of contributions to
the plan—for example, employer, employee organization, employees—and
the method by which the amount of
contribution is calculated. Defined
benefit pension plans may state without further explanation that the contribution is actuarially determined.
(q) The identity of any funding medium used for the accumulation of assets through which benefits are provided. The summary plan description
shall identify any insurance company,
trust fund, or any other institution, organization, or entity which maintains
a fund on behalf of the plan or through
which the plan is funded or benefits are
provided. If a health insurance issuer,
within the meaning of section 733(b)(2)
of the Act, is responsible, in whole or
in part, for the financing or administration of a group health plan, the
summary plan description shall indicate the name and address of the
issuer, whether and to what extent
benefits under the plan are guaranteed
under a contract or policy of insurance
issued by the issuer, and the nature of
any administrative services (e.g., payment of claims) provided by the issuer.

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Employee Benefits Security Admin., Labor
(r) The date of the end of the year for
purposes of maintaining the plan’s fiscal records;
(s) The procedures governing claims
for benefits (including procedures for
obtaining preauthorizations, approvals,
or utilization review decisions in the
case of group health plan services or
benefits, and procedures for filing
claim forms, providing notifications of
benefit determinations, and reviewing
denied claims in the case of any plan),
applicable time limits, and remedies
available under the plan for the redress
of claims which are denied in whole or
in part (including procedures required
under section 503 of Title I of the Act).
The plan’s claims procedures may be
furnished as a separate document that
accompanies the plan’s SPD, provided
that the document satisfies the style
and format requirements of 29 CFR
2520.102–2 and, provided further that
the SPD contains a statement that the
plan’s claims procedures are furnished
automatically, without charge, as a
separate document.
(t)(1) The statement of ERISA rights
described in section 104(c) of the Act,
containing the items of information
applicable to the plan included in the
model statement of paragraph (t)(2) of
this section. Items which are not applicable to the plan are not required to be
included. The statement may contain
explanatory and descriptive provisions
in addition to those prescribed in paragraph (t)(2) of this section. However,
the style and format of the statement
shall not have the effect of misleading,
misinforming or failing to inform participants and beneficiaries of a plan.
All such information shall be written
in a manner calculated to be understood by the average plan participant,
taking into account factors such as the
level of comprehension and education
of typical participants in the plan and
the complexity of the items required
under this subparagraph to be included
in the statement. Inaccurate, incomprehensible or misleading explanatory
material will fail to meet the requirements of this section. The statement of
ERISA rights (the model statement or
a statement prepared by the plan),
must appear as one consolidated statement. If a plan finds it desirable to
make additional mention of certain

§ 2520.102–3

rights elsewhere in the summary plan
description, it may do so. The summary plan description may state that
the statement of ERISA rights is required by Federal law and regulation.
(2) A summary plan description will
be deemed to comply with the requirements of paragraph (t)(1) of this section if it includes the following statement; items of information which are
not applicable to a particular plan
should be deleted:
As a participant in (name of plan) you are
entitled to certain rights and protections
under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides
that all plan participants shall be entitled
to:
RECEIVE INFORMATION ABOUT YOUR PLAN AND
BENEFITS
Examine, without charge, at the plan administrator’s office and at other specified locations, such as worksites and union halls,
all documents governing the plan, including
insurance contracts and collective bargaining agreements, and a copy of the latest
annual report (Form 5500 Series) filed by the
plan with the U.S. Department of Labor and
available at the Public Disclosure Room of
the Pension and Welfare Benefit Administration.
Obtain, upon written request to the plan
administrator, copies of documents governing the operation of the plan, including
insurance contracts and collective bargaining agreements, and copies of the latest
annual report (Form 5500 Series) and updated
summary plan description. The administrator may make a reasonable charge for the
copies.
Receive a summary of the plan’s annual financial report. The plan administrator is required by law to furnish each participant
with a copy of this summary annual report.
Obtain a statement telling you whether
you have a right to receive a pension at normal retirement age (age * * *) and if so,
what your benefits would be at normal retirement age if you stop working under the
plan now. If you do not have a right to a pension, the statement will tell you how many
more years you have to work to get a right
to a pension. This statement must be requested in writing and is not required to be
given more than once every twelve (12)
months. The plan must provide the statement free of charge.
CONTINUE GROUP HEALTH PLAN COVERAGE
Continue health care coverage for yourself,
spouse or dependents if there is a loss of coverage under the plan as a result of a qualifying event. You or your dependents may

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§ 2520.102–3

29 CFR Ch. XXV (7–1–19 Edition)

have to pay for such coverage. Review this
summary plan description and the documents governing the plan on the rules governing your COBRA continuation coverage
rights.
Reduction or elimination of exclusionary
periods of coverage for preexisting conditions under your group health plan, if you
have creditable coverage from another plan.
You should be provided a certificate of creditable coverage, free of charge, from your
group health plan or health insurance issuer
when you lose coverage under the plan, when
you become entitled to elect COBRA continuation coverage, when your COBRA continuation coverage ceases, if you request it
before losing coverage, or if you request it up
to 24 months after losing coverage. Without
evidence of creditable coverage, you may be
subject to a preexisting condition exclusion
for 12 months (18 months for late enrollees)
after your enrollment date in your coverage.
PRUDENT ACTIONS BY PLAN FIDUCIARIES
In addition to creating rights for plan participants ERISA imposes duties upon the
people who are responsible for the operation
of the employee benefit plan. The people who
operate your plan, called ‘‘fiduciaries’’ of the
plan, have a duty to do so prudently and in
the interest of you and other plan participants and beneficiaries. No one, including
your employer, your union, or any other person, may fire you or otherwise discriminate
against you in any way to prevent you from
obtaining a (pension, welfare) benefit or exercising your rights under ERISA.

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ENFORCE YOUR RIGHTS
If your claim for a (pension, welfare) benefit is denied or ignored, in whole or in part,
you have a right to know why this was done,
to obtain copies of documents relating to the
decision without charge, and to appeal any
denial, all within certain time schedules.
Under ERISA, there are steps you can take
to enforce the above rights. For instance, if
you request a copy of plan documents or the
latest annual report from the plan and do
not receive them within 30 days, you may
file suit in a Federal court. In such a case,
the court may require the plan administrator to provide the materials and pay you
up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the
administrator. If you have a claim for benefits which is denied or ignored, in whole or in
part, you may file suit in a state or Federal
court. In addition, if you disagree with the
plan’s decision or lack thereof concerning
the qualified status of a domestic relations
order or a medical child support order, you
may file suit in Federal court. If it should
happen that plan fiduciaries misuse the
plan’s money, or if you are discriminated

against for asserting your rights, you may
seek assistance from the U.S. Department of
Labor, or you may file suit in a Federal
court. The court will decide who should pay
court costs and legal fees. If you are successful the court may order the person you have
sued to pay these costs and fees. If you lose,
the court may order you to pay these costs
and fees, for example, if it finds your claim
is frivolous.
ASSISTANCE WITH YOUR QUESTIONS
If you have any questions about your plan,
you should contact the plan administrator.
If you have any questions about this statement or about your rights under ERISA, or
if you need assistance in obtaining documents from the plan administrator, you
should contact the nearest office of the Employee Benefits Security Administration,
U.S. Department of Labor, listed in your
telephone directory or the Division of Technical Assistance and Inquiries, Employee
Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue
N.W., Washington, D.C. 20210. You may also
obtain certain publications about your
rights and responsibilities under ERISA by
calling the publications hotline of the Employee Benefits Security Administration.

(u)(1) For a group health plan, as defined in section 733(a)(1) of the Act,
that provides maternity or newborn infant coverage, a statement describing
any requirements under federal or
state law applicable to the plan, and
any health insurance coverage offered
under the plan, relating to hospital
length of stay in connection with childbirth for the mother or newborn child.
If federal law applies in some areas in
which the plan operates and state law
applies in other areas, the statement
should describe the different areas and
the federal or state law requirements
applicable in each.
(2) In the case of a group health plan
subject to section 711 of the Act, the
summary plan description will be
deemed to have complied with paragraph (u)(1) of this section relating to
the required description of federal law
requirements if it includes the following statement in the summary plan
description:
Group health plans and health insurance
issuers generally may not, under Federal
law, restrict benefits for any hospital length
of stay in connection with childbirth for the
mother or newborn child to less than 48
hours following a vaginal delivery, or less
than 96 hours following a cesarean section.

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Employee Benefits Security Admin., Labor
However, Federal law generally does not prohibit the mother’s or newborn’s attending
provider, after consulting with the mother,
from discharging the mother or her newborn
earlier than 48 hours (or 96 hours as applicable). In any case, plans and issuers may not,
under Federal law, require that a provider
obtain authorization from the plan or the insurance issuer for prescribing a length of
stay not in excess of 48 hours (or 96 hours).

plan covers are too numerous to be
listed adequately on the first page of
the text of the summary plan description, they may be listed elsewhere in
the text so long as the first page of the
text contains a reference to the page or
pages in the text which contain this information.
[67 FR 775, Jan. 7, 2002]

(Approved by the Office of Management and
Budget under control number 1210–0039)

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[42 FR 37180, July 19, 1977, as amended at 62
FR 16984, Apr. 8, 1997; 62 FR 31695, June 10,
1997; 62 FR 36205, July 7, 1997; 63 FR 48375,
Sept. 9, 1998; 65 FR 70241, Nov. 21, 2000; 66 FR
34994, July 2, 2001; 66 FR 36368, July 11, 2001]

§ 2520.102–4 Option for different summary plan descriptions.
In some cases an employee benefit
plan may provide different benefits for
various classes of participants and
beneficiaries. For example, a plan
amendment altering benefits may
apply to only those participants who
are employees of an employer when the
amendment is adopted and to employees who later become participants, but
not to participants who no longer are
employees when the amendment is
adopted. (See § 2520.104b–4). Similarly, a
plan may provide for different benefits
for participants employed at different
plants of the employer, or for different
classes of participants in the same
plant. In such cases the plan administrator may fulfill the requirement to
furnish a summary plan description to
participants covered under the plan
and beneficiaries receiving benefits
under the plan by furnishing to each
member of each class of participants
and beneficiaries a copy of a summary
plan description appropriate to that
class. Each summary plan description
so prepared shall follow the style and
format prescribed in § 2520.102–2, and
shall contain all information which is
required to be contained in the summary plan description under § 2520.102–
3. It may omit information which is
not applicable to the class of participants or beneficiaries to which it is
furnished. It should also clearly identify on the first page of the text the
class of participants and beneficiaries
for which it has been prepared and the
plan’s coverage of other classes. If the
classes which the employee benefit

§ 2520.103–1

Subpart C—Annual Report
Requirements
SOURCE: 43 FR 10140, Mar. 10, 1978, unless
otherwise noted.

§ 2520.103–1
port.

Contents of the annual re-

(a) In general. The administrator of a
plan required to file an annual report
in accordance with section 104(a)(1) of
the Act shall include with the annual
report the information prescribed in
paragraph (a)(1) of this section or in
the simplified report, limited exemption or alternative method of compliance described in paragraph (a)(2) of
this section.
(1) The annual report shall contain
the information prescribed in section
103 of the Act.
(2) Under the authority of subsections 104(a)(2), 104(a)(3) and 110 of
the Act, and section 1103(b) of the Pension Protection Act of 2006, a simplified
report, limited exemption or alternative method of compliance is prescribed for employee welfare and pension benefit plans, as applicable. A plan
filing a simplified report or electing
the limited exemption or alternative
method of compliance shall file an annual report containing the information
prescribed in paragraph (b) or paragraph (c) of this section, as applicable,
and shall furnish a summary annual report as prescribed in § 2520.104b–10.
(b) Contents of the annual report for
plans with 100 or more participants electing the limited exemption or alternative
method of compliance. Except as provided in paragraph (d) and paragraph
(f) of this section and in §§ 2520.103–2
and 2520.104–44, the annual report of an
employee benefit plan covering 100 or
more participants at the beginning of
the plan year which elects the limited
exemption or alternative method of

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§ 2520.103–1

29 CFR Ch. XXV (7–1–19 Edition)

compliance described in paragraph
(a)(2) of this section shall include:
(1) A Form 5500 ‘‘Annual Return/Report of Employee Benefit Plan’’ and
any statements or schedules required
to be attached to the form, completed
in accordance with the instructions for
the form, including Schedule A (Insurance Information), Schedule SB (Single-Employer Defined Benefit Plan Actuarial Information), Schedule MB
(Multiemployer Defined Benefit Plan
and Certain Money Purchase Plan Actuarial Information), Schedule C (Service Provider Information), Schedule D
(DFE/Participating Plan Information),
Schedule G (Financial Transaction
Schedules), Schedule H (Financial Information), Schedule R (Retirement
Plan Information), and other financial
schedules described in Sec. 2520.103–10.
See the instructions for this form.
(2) Separate financial statements (in
addition to the information required by
paragraph (b)(1) of this section), if such
financial statements are prepared in
order for the independent qualified
public accountant to form the opinion
required by section 103(a)(3)(A) of the
Act and § 2520.103–1(b)(5). These statements shall include the following:
(i) A statement of assets and liabilities at current value presented in comparative form for the beginning and
end of the year. The statement of plan
assets and liabilities shall include the
assets and liabilities required to be reported on the Form 5500; however, the
assets and liabilities may be aggregated into categories in a manner
other than that used on Form 5500.
(ii) Separate or combined statements
of plan income and expenses and of
changes in net assets which include the
categories of income, expense, and
changes in assets required to be reported on the Form 5500; however the
income, expense, and changes in net assets may be aggregated into categories
in a manner other than that used on
Form 5500.
(3) Notes to the financial statements
described in paragraph (b)(1) or (2) of
this section which contain a description of the accounting principles and
practices reflected in the financial
statements
and,
if
applicable,
variances from generally accepted accounting principles; 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 policy
from the prior year, 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; an
explanation of the differences, if any,
between the information contained in
the separate financial statements and
the assets, liabilities, income, expenses
and changes in the net assets as required to be reported on the Form 5500,
and any other matters necessary to
fully and fairly present the financial
condition of the plan.
(4) In the case of a plan, some or all
of the assets of which are held in a
pooled separate account maintained by
an insurance company, or a common or
collective trust maintained by a bank
or similar institution, a copy of the annual statement of assets and liabilities
of such account or trust for the fiscal
year of the account or trust which ends
with or within the plan year for which
the annual report is made as required
to be furnished to the administrator by
such account or trust under § 2520.103–
5(c). Although the statement of assets
and liabilities referred to in § 2520.103–
5(c) shall be considered part of the
plan’s annual report, such statement of
assets and liabilities need not be filed
with the plan’s annual report. See
§§ 2520.103–3 and 2520.103–4 for reporting
requirements for plans some or all of
the assets of which are held in a pooled
separate account maintained by an insurance company, or a common or collective trust maintained by a bank or
similar institution.
(5) A report of an independent qualified public accountant.
(i) Technical requirements. The accountant’s report—
(A) Shall be dated;
(B) Shall be signed manually;
(C) Shall indicate the city and state
where issued; and

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Employee Benefits Security Admin., Labor
(D) Shall identify without detailed
enumeration the financial statements
and schedules covered by the report.
(ii) Representations as to the audit. The
accountant’s report—
(A) Shall state whether the audit was
made in accordance with generally accepted auditing standards; and
(B) Shall designate any auditing procedures deemed necessary by the accountant under the circumstances of
the particular case which have been
omitted, and the reasons for their
omission. Authority for the omission of
certain procedures which independent
accountants might ordinarily employ
in the course of an audit made for the
purpose of expressing the opinions required by paragraph (b)(5)(iii) of this
section is contained in §§ 2520.103–8 and
2520.103–12.
(iii) Opinion to be expressed. The accountant’s report shall state clearly:
(A) The opinion of the accountant in
respect of the financial statements and
schedules covered by the report and the
accounting principles and practices reflected therein; and
(B) The opinion of the accountant as
to the consistency of the application of
the accounting principles with the application of such principles in the preceding year or as to any changes in
such principles which have a material
effect on the financial statements.
(iv) Exceptions. Any matters to which
the accountant takes exception shall
be clearly identified, the exception
thereto specifically and clearly stated,
and, to the extent practicable, the effect of the matters to which the accountant takes exception on the related financial statements given. The
matters to which the accountant takes
exception shall be further identified as
(A) those that are the result of DOL
regulations, and (B) all others.
(c) Contents of the annual report for
plans with fewer than 100 participants.
(1) Except as provided in paragraph
(c)(2), paragraph (d) and paragraph (f)
of this section, and in §§ 2520.104–43,
2520.104a–6, and 2520.104–44, the annual
report of an employee benefit plan that
covers fewer than 100 participants at
the beginning of the plan year shall include a Form 5500 ‘‘Annual Return/Report of Employee Benefit Plan’’ and
any statements or schedules required

§ 2520.103–1

to be attached to the form, completed
in accordance with the instructions for
the form, including Schedule A (Insurance Information), Schedule SB (Single
Employer Defined Benefit Plan Actuarial Information), Schedule MB (Multiemployer Defined Benefit Plan and
Certain Money Purchase Plan Actuarial Information), Schedule D (DFE/
Participating
Plan
Information),
Schedule I (Financial Information—
Small Plan), and Schedule R (Retirement Plan Information). See the instructions for this form.
(2)(i) The annual report of an employee benefit plan that covers fewer
than 100 participants at the beginning
of the plan year and that meets the
conditions in paragraph (c)(2)(ii) of this
section with respect to a plan year
may, as an alternative to the requirements of paragraph (c)(1) of this section, meet its annual reporting requirements by filing the Form 5500–SF
‘‘Short Form Annual Return/Report of
Small Employee Benefit Plan’’ and any
statements or schedules required to be
attached to the form, including Schedule SB (Single Employer Defined Benefit Plan Actuarial Information) and
Schedule MB (Multiemployer Defined
Benefit Plan and Certain Money Purchase Plan Actuarial Information),
completed in accordance with the instructions for the form. See the instructions for this form.
(ii) A plan meets the conditions in
this paragraph (c)(2)(ii) with respect to
the year if the plan:
(A) Does not hold any employer securities at any time during the year;
(B) Satisfies the audit waiver conditions
in
§§ 2520.104–46(b)(1)(i)(A)(1),
(b)(1)(i)(B) and (b)(1)(i)(C);
(C) Had at all times during the plan
year 100 percent of the plan’s assets
held for investment purposes invested
in assets that have a readily determinable fair market value. For purposes of this section, the following
shall be treated as assets that have a
readily determinable fair market
value: Shares issued by an investment
company registered under the Investment Company Act of 1940; investment
and annuity contracts issued by any insurance company, qualified to do business under the laws of a State, that
provides valuation information at least

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§ 2520.103–2

29 CFR Ch. XXV (7–1–19 Edition)

annually to the plan administrator;
bank investment contracts issued by a
bank or similar financial institution,
as defined in § 2550.408b–4(c) of this
chapter, that provides valuation information at least annually to the plan
administrator; securities (except employer securities) traded on a public
exchange; government securities issued
by the United States or by a State;
cash or cash equivalents held by a bank
or similar financial institution, as defined in § 2550.408b–4(c) of this chapter,
by an insurance company, qualified to
do business under the law of a State,
by an organization registered as a
broker-dealer under the Securities Exchange Act of 1934, or by any other organization authorized to act as a trustee for individual retirement accounts
under section 408 of the Internal Revenue Code; and any loan meeting the
requirements of section 408(b)(1) of the
Act and the regulations issued thereunder;
(D) Is not a multiemployer plan; and
(E) Is not a plan subject to the Form
M–1 requirements under § 2520.101–2
(Filing by Multiple Employer Welfare
Arrangements and Certain Other Related Entities).
(d) Special rule. If a plan has between
80 and 120 participants (inclusive) as of
the beginning of the plan year, the plan
administrator may elect to file the
same category of annual report (i.e.,
the annual report for plans with 100 or
more participants under paragraph (b)
of this section or the annual report for
plans with fewer than 100 participants
under paragraph (c) of this section)
that was filed for the previous plan
year.
(e) Plans which participate in a master
trust. The plan administrator of a plan
which participates in a master trust
shall file an annual report on Form
5500 in accordance with the instructions for the form relating to master
trusts and master trust investment accounts. For purposes of annual reporting, a master trust is a trust for which
a regulated financial institution serves
as trustee or custodian (regardless of
whether such institution exercises discretionary authority or control respecting the management of assets
held in the trust) and in which assets
of more than one plan sponsored by a

single employer or by a group of employers under common control are
held. For purpose of this paragraph, a
regulated financial institution is a
bank, trust company, or similar financial institution regulated, supervised,
and subject to periodic examination by
a State or Federal agency. Common
control is determined on the basis of
all relevant facts and circumstances
(whether or not such employers are incorporated).
(f) Plans subject to the Form M–1 filing
requirements under § 2520.101–2. The annual report of an employee welfare
benefit plan that is subject to the
Form
M–1
requirements
under
§ 2520.101–2 (Filing by Multiple Employer Welfare Arrangements and Certain Other Related Entities) during the
plan year shall also include any statements or information required by the
instructions to the Form 5500 relating
to compliance with the Form M–1 filing requirements under § 2520.101–2.
(g) Electronic filing. See § 2520.104a–2
and the instructions for the Form 5500
‘‘Annual Return/Report of Employee
Benefit Plan’’ for electronic filing requirements. The plan administrator
must maintain an original copy, with
all required signatures, as part of the
plan’s records.
[43 FR 10140, Mar. 10, 1978, as amended at 45
FR 51446, Aug. 1, 1980; 46 FR 61079, Dec. 15,
1981; 51 FR 41288, Nov. 13, 1986; 54 FR 8627,
Mar. 1, 1989; 65 FR 21080, Apr. 19, 2000; 71 FR
41368, July 21, 2006; 72 FR 64727, Nov. 16, 2007;
78 FR 13796, Mar. 1, 2013]

§ 2520.103–2 Contents of the annual report for a group insurance arrangement.
(a) General. (1) A trust or other entity
described in § 2520.104–43(b) that files an
annual report for purposes of § 2520.104–
43 shall include in such report the
items set forth in paragraph (b) of this
section.
(2) [Reserved]
(b) Contents. (1) A Form 5500 ‘‘Annual
Return/Report of Employee Benefit
Plan’’ and any statements or schedules
required to be attached to the form,
completed in accordance with the instructions for the form, including
Schedule A (Insurance Information),
Schedule C (Service Provider Information), Schedule D (DFE/Participating

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Employee Benefits Security Admin., Labor
Plan Information), Schedule G (Financial Transaction Schedules), Schedule
H (Financial Information), and the
other financial schedules described in
§ 2520.103–10. See the instructions for
this form.
(2) Separate financial statements (in
addition to the information required by
paragraph (b)(1) of this section), if such
financial statements are prepared in
order for the independent qualified
public accountant to form the opinion
required by section 103(a)(3)(A) of the
Act and § 2520.103–2(b)(5). These financial statements shall include the following:
(i) A statement of all trust assets and
liabilities at current value presented in
comparative form for the beginning
and end of the year. The statement of
trust assets and liabilities shall include
the assets and liabilities required to be
reported on the Form 5500; however,
the assets and liabilities may be aggregated into categories in a manner
other than that used on Form 5500.
(ii) Separate or combined statements
of all trust income and expenses and
changes in net assets which includes
the categories of income, expense, and
changes in assets required to be reported on the Form 5500; however, the
income, expense, and changes in assets
may be aggregated into categories in a
manner other than that used on Form
5500.
(3) Notes to the financial statements
described in paragraph (b)(1) or (2) of
this section which contain a description of the accounting principles and
practices reflected in the financial
statements
and,
if
applicable,
variances from generally accepted accounting principles; a description of
the group insurance arrangement including any significant changes in the
group insurance arrangement 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; an explanation of the differences, if any, between the information contained in the separate financial
statements and the assets, liabilities,

§ 2520.103–2

income, expenses and changes in net
assets as required to be reported on the
Form 5500; and any other matters necessary to fully and fairly present the financial condition of the plan.
(4) In the case of a group insurance
arrangement some or all of the assets
of which are held in a pooled separate
account maintained by an insurance
carrier, or in a common or collective
trust maintained by a bank, trust company or similar institution, a copy of
the annual statement of assets and liabilities of such account or trust for
the fiscal year of the account or trust
which ends with or within the plan
year for which the annual report is
made as required to be furnished by
such account or trust under § 2520.103–
5(c). Although the statement of assets
and liabilities referred to in § 2520.103–
5(c) shall be considered part of the
group insurance arrangement’s annual
report, such statement of assets and liabilities need not be filed with its annual report. See §§ 2520.103–3 and
2520.103–4 for reporting requirements
for plans some or all of the assets of
which are held in a pooled separate account maintained by an insurance company, or a common or collective trust
maintained by a bank or similar institution, and see § 2520.104–43(b)(2) for
when the terms ‘‘group insurance arrangement’’ or ‘‘trust or other entity’’
shall be, respectively, used in place of
the terms ‘‘plan’’ and ‘‘plan administrator.’’
(5) A report of an independent qualified public accountant.
(i) Technical requirements. The accountant’s report—
(A) Shall be dated;
(B) Shall be signed manually;
(C) Shall indicate the city and State
where issued; and
(D) Shall identify without detailed
enumeration the financial statements
and schedules covered by the report.
(ii) Representations as to the audit. The
accountant’s report—
(A) Shall state whether the audit was
made in accordance with generally accepted auditing standards; and
(B) Shall designate any auditing procedures deemed necessary by the accountant under the circumstances of
the particular case, which have been
omitted, and the reasons for their

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§ 2520.103–3

29 CFR Ch. XXV (7–1–19 Edition)

omission. Authority for the omission of
certain procedures which independent
accountants might ordinarily employ
in the course of an audit made for the
purpose of expressing the opinions required by paragraph (b)(5)(iii) of this
section is contained in § 2520.103–8.
(iii) Opinion to be expressed. The accountant’s report shall state clearly:
(A) The opinion of the accountant in
respect of the financial statements and
schedules covered by the report and the
accounting principles and practices reflected therein; and
(B) The opinion of the accountant as
to the consistency of the application of
the accounting principles with the application of such priniciples in the preceding year, or as to any changes in
such principles which have a material
effect on the financial statements.
(iv) Exceptions. Any matters to which
the accountant takes exception shall
be clearly identified, the exception
thereto specifically and clearly stated,
and, to the extent practicable, the effect of the matters to which the accountant takes exception on the related financial statements given. The
matters to which the accountant takes
exception shall be further identified as
to (A) those that are the result of DOL
regulations and (B) all others.
(c) Electronic filing. See § 2520.104a–2
and the instructions for the Form 5500
‘‘Annual Return/Report of Employee
Benefit Plan’’ for electronic filing requirements. The trust or other entity
described in § 2520.104–43(b) filing under
this section must maintain an original
copy, with all required signatures, as
part of its records.

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[43 FR 10140, Mar. 10, 1978, as amended at 54
FR 8627, Mar. 1, 1989; 65 FR 21080, Apr. 19,
2000; 71 FR 41368, July 21, 2006]

§ 2520.103–3 Exemption from certain
annual reporting requirements for
assets held in a common or collective trust.
(a) General. Under the authority of
sections
103(b)(3)(G),
103(b)(4),
104(a)(2)(B), 104(a)(3), 110 and 505 of the
Act, a plan whose assets are held in
whole or in part in a common or collective trust maintained by a bank, trust
company, or similar institution which
meets the requirements of paragraph
(b) of this section shall include as part

of the annual report required to be
filed under § 2520.104a–5 or § 2520.104a–6
the information described in paragraph
(c) of this section. Such plan is not required to include in its annual report
information concerning the individual
transactions of the common or collective trust. This exemption has no application to assets not held in such
trusts.
(b) Application. This provision applies
only to a plan some or all of the assets
of which are held in a common or collective trust maintained by a bank,
trust company, or similar institution
regulated and supervised and subject to
periodic examination by a State or
Federal agency. For purposes of this
section,
(1) A common or collective trust is a
trust which consists of the assets of
two or more participating entities and
is maintained for the collective investment and reinvestment of assets contributed thereto, and
(2) Plans maintained by a single employer or by the members of a controlled group of corporations, as defined in section 1563(a) of the Internal
Revenue Code of 1954, shall be deemed
to be a single participating entity.
(c) Contents. (1) A plan which meets
the requirements of paragraph (b) of
this section, and which invests in a
common or collective trust that files a
Form 5500 report in accordance with
§ 2520.103–9, shall include in its annual
report: information required by the instructions to Schedule H (Financial Information) or Schedule I (Financial Information—Small Plan) about the current value of and net investment gain
or loss relating to the units of participation in the common or collective
trust held by the plan; identifying information about the common or collective trust including its name, employer
identification number, and any other
information required by the instructions to the Schedule D (DFE/Participating Plan Information); and such
other information as is required in the
separate statements and schedules of
the annual report about the value of
the plan’s units of participation in the
common or collective trust and transactions involving the acquisition and

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Employee Benefits Security Admin., Labor
disposition by the plan of units of participation in the common or collective
trust.
(2) A plan which meets the requirements of paragraph (b) of this section,
and which invests in a common or collective trust that does not file a Form
5500
report
in
accordance
with
§ 2520.103–9, shall include in its annual
report: information required by the instructions to Schedule H (Financial Information) or Schedule I (Financial Information—Small Plan) about the current value of the plan’s allocable portion of the underlying assets and liabilities of the common or collective trust
and the net investment gain or loss relating to the units of participation in
the common or collective trust held by
the plan; identifying information about
the common or collective trust including its name, employer identification
number, and any other information required by the instructions to the
Schedule D (DFE/Participating Plan
Information); and such other information as is required in the separate
statements and schedules of the annual
report about the value of the plan’s
units of participation in the common
or collective trust and transactions involving the acquisition and disposition
by the plan of units of participation in
the common or collective trust.

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[43 FR 10140, Mar. 10, 1978, as amended at 65
FR 21081, Apr. 19, 2000]

§ 2520.103–4 Exemption from certain
annual reporting requirements for
assets held in an insurance company pooled separate account.
(a) General. Under the authority of
sections
103(b)(3)(G),
103(b)(4),
104(a)(2)(B), 104(a)(3), 110 and 505 of the
Act, a plan whose assets are held in
whole or in part in a pooled separate
account of an insurance carrier which
meets the requirements of paragraph
(b) of this section shall include as part
of the annual report required to be
filed under § 2520.104a–5 or § 2520.104a–6
the information described in paragraph
(c) of this section. Such plan is not required to include in its annual report
information concerning the individual
transactions of the pooled separate account. This exemption has no application to assets not held in such a pooled
separate account.

§ 2520.103–4

(b) Application. This provision applies
only to a plan some or all of the assets
of which are held in a pooled separate
account of an insurance carrier regulated and supervised and subject to
periodic examination by a State agency. For purposes of this section, (1) a
pooled separate account is an account
which consists of the assets of two or
more participating entities and is
maintained for the collective investment and reinvestment of assets contributed thereto, and (2) plans maintained by a single employer or by members of a controlled group of corporations, as defined in section 1563(a) of
the Internal Revenue Code of 1954, shall
be deemed to be a single participating
entity.
(c) Contents. (1) A plan which meets
the requirements of paragraph (b) of
this section, and which invests in a
pooled separate account that files a
Form 5500 report in accordance with
§ 2520.103–9, shall include in its annual
report: information required by the instructions to Schedule H (Financial Information) or Schedule I (Financial Information—Small Plan) about the current value of, and net investment gain
or loss relating to, the units of participation in the pooled separate account
held by the plan; identifying information about the pooled separate account
including its name, employer identification number, and any other information required by the instructions to
the Schedule D (DFE/Participating
Plan Information); and such other information as is required in the separate
statements and schedules of the annual
report about the value of the plan’s
units of participation in the pooled separate accounts and transactions involving the acquisition and disposition
by the plan of units of participation in
the pooled separate account.
(2) A plan which meets the requirements of paragraph (b) of this section,
and which invests in a pooled separate
account that does not file a Form 5500
report in accordance with § 2520.103–9,
shall include in its annual report: information required by the instructions
to Schedule H (Financial Information)
or Schedule I (Financial Information—
Small Plan) about the current value of
the plan’s allocable portion of the underlying assets and liabilities of the

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§ 2520.103–5

29 CFR Ch. XXV (7–1–19 Edition)

pooled separate account and the net investment gain or loss relating to the
units of participation in the pooled separate account held by the plan; identifying information about the pooled separate account including its name, employer identification number, and any
other information required by the instructions to the Schedule D (DFE/Participating Plan Information); and such
other information as is required in the
separate statements and schedules of
the annual report about the value of
the plan’s units of participation in the
pooled separate account and transactions involving the acquisition and
disposition by the plan of units of participation in the pooled separate account.

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[43 FR 10140, Mar. 10, 1978, as amended at 65
FR 21081, Apr. 19, 2000]

§ 2520.103–5 Transmittal and certification of information to plan administrator for annual reporting
purposes.
(a) General. In accordance with section 103(a)(2) of the Act, an insurance
carrier or other organization which
provides benefits under the plan or
holds plan assets, a bank or similar institution which holds plan assets, or a
plan sponsor shall transmit and
certifty such information as needed by
the administrator to file the annual report under section 104(a)(1) of the Act
and § 2520.104a–5 or § 2520.104a–6:
(1) Within 9 months after the close of
the plan year which begins in 1975 or
September 30, 1976, whichever is later,
and
(2) Within 120 days after the close of
any plan year which begins after December 31, 1975.
(b) Application. This requirement applies with respect to—
(1) An insurance carrier or other organization which:
(i) Provides from its general asset account funds for the payment of benefits
under a plan, or
(ii) Holds assets of a plan in a separate account;
(2) A bank, trust company, or similar
institution which holds assets of a plan
in a common or collective trust, separate trust, or custodial account; and
(3) A plan sponsor as defined in section 3(16)(B) of the Act.

(c) Contents. The information required to be provided to the administrator shall include—
(1) In the case of an insurance carrier
or other organization which:
(i) Provides funds from its general
asset account for the payment of benefits under a plan, upon request of the
plan administrator, such information
as is contained within the ordinary
business records of the insurance carrier or other organization and is needed
by the plan administrator to comply
with the requirements of section
104(a)(1) of the Act and § 2520.104a–5 or
§ 2520.104a–6;
(ii) Holds assets of a plan in a pooled
separate account and files a Form 5500
report pursuant to § 2520.103–9 for the
participating plan’s plan year—
(A) A copy of the annual statement
of assets and liabilities of the separate
account for the fiscal year of such account ending with or within the plan
year for which the participating plan’s
annual report is made,
(B) A statement of the value of the
plan’s units of participation in the separate account,
(C) The Employer Identification
Number (EIN) of the separate account,
entity number required for purposes of
completing the Form 5500 and any
other identifying number assigned by
the insurance carrier to the separate
account,
(D) A statement that a filing pursuant to § 2520.103–9(c) will be made for
the separate account (for its fiscal year
ending with or within the participating
plan’s plan year) on or before the filing
due date for such account in accordance with the Form 5500 instructions,
and
(E) Upon request of the plan administrator, any other information that can
be obtained from the ordinary business
records of the insurance carrier and
that is needed by the plan administrator to comply with the requirements of section 104(a)(1) of the Act
and § 2520.104a–5 or § 2520.104a–6;
(iii) Holds assets of a plan in a pooled
separate account and does not file a
Form 5500 report pursuant to § 2520.103–
9 for the participating plan’s plan
year—
(A) A copy of the annual statement
of assets and liabilities of the separate

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kpayne on VMOFRWIN702 with $$_JOB

Employee Benefits Security Admin., Labor
account for the fiscal year of such account that ends with or within the plan
year for which the participating plan’s
annual report is made,
(B) A statement of the value of the
plan’s units of participation in the separate account,
(C) The EIN of the separate account
and any other identifying number assigned by the insurance carrier to the
separate account,
(D) A statement that a filing pursuant to § 2520.103–9(c) will not be made
for the separate account for its fiscal
year ending with or within the participating plan’s plan year, and
(E) Upon request of the plan administrator, any other information that can
be obtained from the ordinary business
records of the insurance carrier and
that is needed by the plan administrator to comply with the requirements of section 104(a)(1) of the Act
and § 2520.104a–5 or § 2520.104a–6.
(iv) Holds assets of a plan in a separate account which is not exempted
from certain reporting requirements
under § 2520.103–4, a listing of all transactions of the separate account and,
upon request of the plan administrator,
such information as is contained within the ordinary business records of the
insurance carrier and is needed by the
plan administrator to comply with the
requirements of section 104(a)(1) of the
Act and § 2520.104a–5 or § 2520.104a–6.
(2) In the case of a bank, trust company, or similar institution holding assets of a plan—
(i) In a common or collective trust
that files a Form 5500 report pursuant
to § 2520.103–9 for the participating
plan’s plan year—
(A) A copy of the annual statement
of assets and liabilities of the common
or collective trust for the fiscal year of
such trust ending with or within the
plan year for which the participating
plan’s annual report is made,
(B) A statement of the value of the
plan’s units of participation in the
common or collective trust,
(C) The EIN of the common or collective trust, entity number assigned for
purposes of completing the Form 5500
and any other identifying number assigned by the bank, trust company, or
similar institution,

§ 2520.103–5

(D) A statement that a filing pursuant to § 2520.103–9(c) will be made for
the common or collective trust (for its
fiscal year ending with or within the
participating plan’s plan year) on or
before the filing due date for such trust
in accordance with the Form 5500 instructions, and
(E) Upon request of the plan administrator, any other information that can
be obtained from the ordinary business
records of the bank, trust company or
similar institution and that is needed
by the plan administrator to comply
with the requirements of section
104(a)(1) of the Act and § 2520.104a–5 or
§ 2520.104a–6.
(ii) In a common or collective trust
that does not file a Form 5500 report
pursuant to § 2520.103–9 for the participating plan’s plan year—
(A) A copy of the annual statement
of assets and liabilities of the common
or collective trust for the fiscal year of
such account that ends with or within
the plan year for which the participating plan’s annual report is made,
(B) A statement of the value of the
plan’s units of participation in the
common or collective trust,
(C) The EIN of the common or collective trust and any other identifying
number assigned by the bank, trust
company or similar institution,
(D) A statement that a filing pursuant to § 2520.103–9(c) will not be made
for the common or collective trust for
its fiscal year ending with or within
the participating plan’s plan year, and
(E) Upon request of the plan administrator, any other information that can
be obtained from the ordinary business
records of the bank, trust company or
similar institution and that is needed
by the plan administrator to comply
with the requirements of section
104(a)(1) of the Act and § 2520.104a–5 or
§ 2520.104a–6.
(iii) In a trust which is not exempted
from certain reporting requirements
under § 2520.103–3, a listing of all transactions of the separate trust and, upon
request of the plan administrator, such
information as is contained within the
ordinary business records of the bank,
trust company, or similar institution

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§ 2520.103–6

29 CFR Ch. XXV (7–1–19 Edition)

and is needed by the plan administrator to comply with the requirements of section 104(a)(1) of the Act
and § 2520.104a–5.
(iv) In a custodial account, upon request of the plan administrator, such
information as is contained within the
ordinary business records of the bank,
trust company, or similar institution
and is needed by the plan administrator to comply with the requirements of section 104(a)(1) of the Act
and § 2520.104a–5 or § 2520.104a–6.
(3) In the case of a plan sponsor, a
listing of all transactions directly or
indirectly involving plan assets engaged in by the plan sponsor and such
information as is needed by the plan
administrator to comply with the requirements of section 104(a)(1) of the
Act and § 2520.104a–5 or § 2520.104a–6.
(d) Certification. (1) An insurance carrier or other organization, a bank,
trust company, or similar institution,
or plan sponsor, as described in paragraph (b) of this section, shall certify
to the accuracy and completeness of
the information described in paragraph
(c) of this section by a written declaration which is signed by a person authorized to represent the insurance
carrier, bank, or plan sponsor. Such
certification will serve as a written assurance of the truth of the facts stated
therein.
(2) Example of Certification. The XYZ
Bank (Insurance Carrier) hereby certifies that the foregoing statement furnished pursuant to 29 CFR 2520.103–5(c)
is complete and accurate.
[43 FR 10140, Mar. 10, 1978, as amended at 65
FR 21082, Apr. 19, 2000]

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§ 2520.103–6 Definition of reportable
transaction for Annual Return/Report.
(a) General. For purposes of preparing
the schedule of reportable transactions
described in § 2520.103–10(b)(6), and subject to the exceptions provided in
§§ 2520.103–3, 2520.103–4 and 2520.103–12,
with respect to individual transactions
by a common or collective trust,
pooled separate account, or a 103–12 investment entity, a reportable transaction includes any transaction or series of transactions described in paragraph (c) of this section.

(b) Definitions. (1)(i) Except as provided in paragraphs (c)(2) and (d)(1)(vi)
of this section (relating to assets acquired or disposed of during the plan
year), ‘‘current value’’ shall mean the
current value, as defined in section
3(26) of the Act, of plan assets as of the
beginning of the plan year, or the end
of the previous plan year.
(ii) Except as provided in paragraphs
(c)(2) and (d)(1)(vi) of this section (relating to assets acquired or disposed of
during the plan year), with respect to
schedules of reportable transactions for
the initial plan year of a plan, ‘‘current
value’’ shall mean the current value, as
defined in section 3(26) of the Act, of
plan assets at the end of a plan’s initial
plan year.
(2)(i) A ‘‘transaction with respect to
securities’’ is any purchase, sale, or exchange of securities. A transaction
with respect to securities for purposes
of this section occurs on either the
trade date or settlement date of a purchase, sale, or exchange of securities;
either the trade date or settlement
date must be used consistently during
the plan year for the purposes of this
section. For the purposes of this section, except as provided in paragraph
(b)(2)(ii) of this section, ‘‘securities’’
includes a unit of participation in a
common or collective trust or a pooled
separate account.
(ii) Solely for purposes of paragraph
(c)(1)(iv) of this section, the term ‘‘securities’’, as it applies to any transaction involving a bank or insurance
company regulated by a Federal or
State agency, an investment company
registered under the Investment Company Act of 1940, or a broker-dealer
registered under the Securities Exchange Act of 1934, shall not include:
(A) Debt obligations of the United
States or any United States agency
with a maturity of not more than one
year;
(B) Debt obligations of the United
States or any United States agency
with a maturity of more than one year
if purchased or sold under a repurchase
agreement having a term of less than
91 days;
(C) Interests issued by a company
registered under the Investment Company Act of 1940;

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Employee Benefits Security Admin., Labor
(D) Bank certificates of deposit with
a maturity of not more than one year;
(E) Commercial paper with a maturity of not more than nine months if it
is ranked in the highest rating category for commercial paper by at least
two nationally recognized statistical
rating services and is issued by a company required to file reports under section 13 of the Securities Exchange Act
of 1934;
(F) Participations in a bank common
or collective trust;
(G) Participations in an insurance
company pooled separate account;
(3)(i) Except as provided by paragraph (b)(3)(ii) of this section, a transaction is ‘‘with or in conjunction with
a person’’ for purposes of this section if
that person benefits from, executes, facilitates, participates, promotes, or solicits a transaction or part of a transaction involving plan assets.
(ii) Solely for the purposes of paragraph (c)(1)(iv) of this section, a transaction shall not be considered ‘‘with or
in conjunction with a person’’ if:
(A) That person is a broker-dealer
registered under the Securities Exchange Act of 1934;
(B) The transaction involves the purchase or sale of securities listed on a
national securities exchange registered
under section 6 of the Securities Exchange Act of 1934 or quoted on
NASDAQ; and
(C) The broker-dealer does not purchase or sell securities involved in the
transaction for its own account or the
account of an affiliated person.
(c) Application. (1) Except as provided
in paragraph (c)(4) of this section, this
provision applies to—
(i) A transaction within the plan
year, with respect to any plan asset,
involving an amount in excess of 3 percent of the current value of plan assets;
(ii) Any series of transactions (other
than transactions with respect to securities) within the plan year with or in
conjunction with the same person
which, when aggregated, regardless of
the category of asset and the gain or
loss on any transaction, involves an
amount in excess of 3 percent of the
current value of plan assets;
(iii) Any transaction within the plan
year involving securities of the same
issue if within the plan year any series

§ 2520.103–6

of transactions with respect to such securities, when aggregated, involves an
amount in excess of 3 percent of the
current value of plan assets; and
(iv) Any transaction within the plan
year with respect to securities with or
in conjunction with a person if any
prior or subsequent single transaction
within the plan year with such person
with respect to securities exceeds 3 percent of the current value of plan assets.
(2) For purposes of determining
whether any 3 percent transactions
occur, the ‘‘current value’’ of an asset
acquired or disposed of during the plan
year is the current value, as defined in
section 3(26) of the Act, at the time of
acquisition or disposition of such asset.
(3) Plans whose assets are held in
whole or in part in a common or collective trust or a pooled separate account,
as provided in §§ 2520.103–3 and 2520.103–
4, and which satisfy the requirements
of those sections, are not required to
prepare schedules of reportable transactions with respect to the individual
transactions of the common or collective trust or pooled separate account.
(4) For plan years beginning on or
after January 1, 1988, 5 percent shall be
substituted for 3 percent in paragraphs
(c)(1) and (2) of this section for purposes of determining whether a transaction or series of transactions constitutes a reportable transaction under
this section.
(d) Contents. (1) The schedule of
transactions shall include the following information as to each transaction or series of transactions:
(i) The name of each party, except
that in the case of a transaction or series of transactions involving a purchase or sale of a security on the market, the schedule need not include the
person from whom it was purchased or
to whom it was sold. A purchase or sale
on the market is a purchase or sale of
a security through a registered brokerdealer acting as a broker under the Securities Exchange Act of 1934;
(ii) A brief description of each asset;
(iii) The purchase or selling price in
the case of a purchase or sale, the rental in the case of a lease, and the
amount of principal, interest rate, payment schedule (e.g., fully amortized,
partly amortized with balloon) and maturity date in the case of a loan;

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§ 2520.103–6

29 CFR Ch. XXV (7–1–19 Edition)

(iv) Expenses incurred, including, but
not limited to, any fees or commissions;
(v) The cost of any asset;
(vi) The current value of any asset
acquired or disposed of at the time of
acquisition or disposition; and
(vii) The net gain or loss.
(2) The schedule of transactions with
respect to a series of transactions described in paragraph (c)(1)(iii) may include the following information for
each issue in lieu of the information
prescribed
in
paragraphs
(d)(1)(i)
through (vii):
(i) The total number of purchases of
such securities made by the plan within the plan year;
(ii) The total number of sales of such
securities made by the plan within the
plan year;
(iii) The total dollar value of such
purchases;
(iv) The total dollar value of such
sales;
(v) The net gain or loss as a result of
these transactions.
(e) Examples. These examples are effective for reporting for plan years beginning on or after January 1, 1988.
(1) At the beginning of the plan year,
XYZ plan has 10 percent of the current
value of its plan assets invested in ABC
common stock. Halfway through the
plan year, XYZ purchases ABC common stock in a single transaction in an
amount equal to 6 percent of the current value of plan assets. At about this
time, XYZ plan also purchases a commercial development property in an
amount equal to 8 percent of the current value of plan assets. Under paragraph (c)(1)(i) of this section, the 6 percent stock transaction is a reportable
transaction for the plan year because it
exceeds 5 percent of the current value
of plan assets. The 8 percent land
transaction is also reportable under
paragraph (c)(1)(i) of this section because it exceeds 5 percent of the current value of plan assets.
(2) During the plan year, AAA plan
purchases a commercial lot from ZZZ
corporation at a cost equal to 2 percent
of the current value of the plan assets.
Two months later, AAA plan loans ZZZ
corporation an amount of money equal
to 3.5 percent of the current value of
plan assets. Under the provisions of

paragraph (c)(1)(ii) of this section, the
plan has engaged in a reportable series
of transactions with or in conjunction
with the same person, ZZZ corporation,
which when aggregated involves 5.5
percent of plan assets.
(3) During the plan year NMN plan
sells to OPO corporation a commercial
property that represents 3.5 percent of
the current value of plan assets. OPO
simultaneously executes a note and
mortgage on the purchased property to
NMN which represents 3 percent of the
current value of plan assets. Under the
provisions of paragraph (c)(1)(ii) of this
section, NMN has engaged in a reportable series of transactions with or in
conjunction with the same person, OPO
corporation, consisting of a simultaneous sale of property and a loan,
which, when aggregated, involves 6.5
percent of the current value of plan assets.
(4) At the beginning of the plan year,
ABC plan has 10 percent of the current
value of plan assets invested equally in
a combination of XYZ Corporation
common stock and XYZ preferred
stock. One month into the plan year,
ABC sells some of its XYZ common
stock in an amount equal to 2 percent
of the current value of plan assets.
(i) Six weeks later the plan sells XYZ
preferred stock in an amount equal to
4 percent of the current value of plan
assets. A reportable series of transactions has not occurred because only
transactions involving securities of the
same issue are to be aggregated under
paragraph (c)(1)(iii) of this section.
(ii) Two weeks later when the ABC
plan purchases XYZ common stock in
an amount equal to 3.5 percent of the
current value of plan assets, a reportable series of transactions under paragraph (c)(1)(iii) of this section has occurred. The sale of XYZ common stock
worth 2 percent of plan assets and the
purchase of XYZ common stock worth
3.5 percent of plan assets aggregate to
exceed 5 percent of the total value of
plan assets.
(5) At the beginning of the plan year,
Plan X purchases through broker-dealer Y common stock of Able Industries
in an amount equal to 6 percent of plan
assets. The common stock of Able Industries is not listed on any national
securities exchange or quoted on

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Employee Benefits Security Admin., Labor
NASDAQ. This purchase is a reportable
transaction under paragraph (c)(1)(i) of
this section. Three months later, Plan
X purchases short term debt obligations of Charley Company through
broker-dealer Y in the amount of 0.2
percent of plan assets. This purchase is
also a reportable transaction under the
provisions of paragraph (c)(1)(iv) of this
section.
(6) At the beginning of the plan year,
Plan X purchases from Bank B certificates of deposit having a 180 day maturity in an amount equal to 6 percent of
plan assets. Bank B is a national bank
regulated by the Comptroller of the
Currency. This purchase is a reportable
transaction under paragraph (c)(1)(i) of
this section. Three months later, Plan
X purchases through Bank B 91-day
Treasury bills in the amount of 0.2 percent of plan assets. This purchase is
not a reportable transaction under
paragraph (c)(1)(iv) of this section because the purchase of the Treasury
bills as well as the purchase of the certificates of deposit are not considered
to involve a security under the definition of ‘‘securities’’ in paragraph
(b)(2)(ii) of this section.
(7) At the beginning of the plan year,
Plan X purchases through broker-dealer Y common stock of Able Industries,
a New York Stock Exchange listed security, in an amount equal to 6 percent
of plan assets. This purchase is a reportable transaction under paragraph
(c)(1)(i) of this section. Three months
later, Plan X purchases through
broker-dealer Y, acting as agent, common stock of Baker Corporation, also a
New York Stock Exchange listed security, in an amount equal to 0.2 percent
of plan assets. This latter purchase is
not a reportable transaction under
paragraph (c)(1)(iv) of this section because it is not a transaction ‘‘with or
in conjunction with a person’’ pursuant
to paragraph (b)(3)(ii) of this section.
(f) Special rule for certain participantdirected transactions. Participant or
beneficiary directed transactions under
an individual account plan shall not be
taken into account under paragraph
(c)(1) of this section for purposes of preparing the schedule of reportable transactions described in this section. For
purposes of this section only, a transaction will be considered directed by a

§ 2520.103–9

participant or beneficiary if it has been
authorized by such participant or beneficiary.
[43 FR 10140, Mar. 10, 1978; 43 FR 14009, Apr.
4, 1978, as amended at 54 FR 8628, Mar. 1, 1989;
61 FR 33849, July 1, 1996; 65 FR 21082, Apr. 19,
2000]

§ 2520.103–8 Limitation on scope of accountant’s examination.
(a) General. Under the authority of
section 103(a)(3)(C) of the Act, the examination and report of an independent qualified public accountant
need not extend to any statement or
information prepared and certified by a
bank or similar institution or insurance carrier. A plan, trust or other entity which meets the requirements of
paragraph (b) of this section is not required to have covered by the accountant’s examination or report any of the
information described in paragraph (c)
of this section.
(b) Application. This section applies
to any plan, trust or other entity some
or all of the assets of which are held by
a bank or similar institution or insurance carrier which is regulated and supervised and subject to periodic examination by a State or Federal agency.
(c) Excluded information. Any statements or information certified to by a
bank or similar institution or insurance carrier described in paragraph (b)
of this section, provided that the statements or information regarding assets
so held are prepared and certified to by
the bank or insurance carrier in accordance with § 2520.103–5.
§ 2520.103–9 Direct filing for bank or
insurance carrier trusts and accounts.
(a) General. Under the authority of
sections 103(b)(4), 104(a)(3), 110 and 505
of the Act, an employee benefit plan,
some or all of the assets of which are
held in a common or collective trust or
a pooled separate account described in
section 103(b)(3)(G) of the Act and
§§ 2520.103–3 and 2520.103–4, is relieved
from including in its annual report information about the current value of
the plan’s allocable portion of assets
and liabilities of the common or collective trust or pooled separate account
and information concerning the individual transactions of the common or

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§ 2520.103–10

29 CFR Ch. XXV (7–1–19 Edition)

collective trust or pooled separate account, provided that the plan meets
the requirements of paragraph (b) of
this section, and, provided further,
that the bank or insurance carrier
which holds the plan’s assets meets the
requirements of paragraph (c) of this
section.
(b) Application. A plan whose assets
are held in a common or collective
trust or a pooled separate account described in section 103(b)(3)(G) of the
Act and §§ 2520.103–3 and 2520.103–4, provided the plan administrator, on or before the end of the plan year, provides
the bank or insurance carrier which
maintains the common or collective
trust or pooled separate account with
the plan number, and name and Employer Identification Number of the
plan sponsor as will be reported on the
plan’s annual report.
(c) Separate filing by common or collective trusts and pooled separate accounts.
The bank or insurance carrier which
maintains the common or collective
trust or pooled separate account in
which assets of the plan are held shall
file, in accordance with the instructions for the form, a completed Form
5500 ‘‘Annual Return/Report of Employee Benefit Plan’’ and any statements or schedules required to be attached to the form for the common or
collective trust or pooled separate account, including Schedule D (DFE/Participating
Plan
Information)
and
Schedule H (Financial Information).
See the instructions for this form. The
information reported shall be for the
fiscal year of such trust or account
ending with or within the plan year for
which the annual report of the plan is
made.
(d) Electronic filing. See § 2520.104a–2
and the instructions for the Form 5500
‘‘Annual Return/Report of Employee
Benefit Plan’’ for electronic filing requirements. The bank or insurance
company which maintains the common
or collective trust or pooled separate
account must maintain an original
copy, with all required signatures, as
part of its records.
[65 FR 21082, Apr. 19, 2000, as amended at 71
FR 41368, July 21, 2006]

§ 2520.103–10 Annual report financial
schedules.
(a) General. The administrator of a
plan filing an annual report pursuant
to § 2520.103–1(a)(2) or the report for a
group insurance arrangement pursuant
to § 2520.103–2 shall, as provided in the
instructions to the Form 5500 ‘‘Annual
Return/Report of Employee Benefit
Plan,’’ include as part of the annual report the separate financial schedules
described in paragraph (b) of this section.
(b) Schedules—(1) Assets held for investment. (i) A schedule of all assets
held for investment purposes at the end
of the plan year (see § 2520.103–11) with
assets aggregated and identified by:
(A) Identity of issue, borrower, lessor
or similar party to the transaction (including a notation as to whether such
party is known to be a party in interest);
(B) Description of investment including maturity date, rate of interest, collateral, par, or maturity value;
(C) Cost; and
(D) Current value, and, in the case of
a loan, the payment schedule.
(ii) Except as provided in the Form
5500 and the instructions thereto, in
the case of assets or investment interests of two or more plans maintained
in one trust, all entries on the schedule
of assets held for investment purposes
that relate to the trust shall be completed by including the plan’s allocable
portion of the trust.
(2) Assets acquired and disposed within
the plan year. (i) A schedule of all assets acquired and disposed of within
the plan year (see § 2520.103–11) with assets aggregated and identified by:
(A) Identity of issue, borrower, issuer
or similar party;
(B) Descriptions of investment including maturity date, rate of interest,
collateral, par, or maturity value;
(C) Cost of acquisitions; and
(D) Proceeds of dispositions.
(ii) Except as provided in the Form
5500 and the instructions thereto, in
the case of assets or investment interests of two or more plans maintained
in one trust, all entries on the schedule
of assets held for investment purposes
that relate to the trust shall be completed by including the plan’s allocable
portion of the trust.

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Employee Benefits Security Admin., Labor
(3) Party in interest transactions. A
schedule of each transaction involving
a person known to be a party in interest except do not include:
(i) A transaction to which a statutory exemption under part 4 of title I
applies;
(ii) A transaction to which an administrative exemption under section
408(a) of the Act applies; or
(iii) A transaction to which the exemptions of section 4975(c) or 4975(d) of
the Internal Revenue Code (Title 26 of
the United States Code) applies.
(4) Obligations in default. A schedule
of all loans or fixed income obligations
which were in default as of the end of
the plan year or were classified during
the year as uncollectible.
(5) Leases in default. A schedule of all
leases which were in default or were
classified
during
the
year
as
uncollectible.
(6) Reportable transactions. A schedule
of all reportable transactions as defined in § 2520.103–6.
(c) Format requirements for certain
schedules. See the instructions to the
Form 5500 ‘‘Annual Return/Report of
Employee Benefit Plan’’ as to the format requirement for the schedules referred to in paragraphs (b)(1), (b)(2) or
(b)(6) of this section.

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[65 FR 21083, Apr. 19, 2000]

§ 2520.103–11 Assets held for investment purposes.
(a) General. For purposes of preparing
the schedule of assets held for investment purposes described in § 2520.103–
10(b)(1) and (2), assets held for investment purposes include those assets described in paragraph (b) of this section.
(b) Definitions. (1) Assets held for investment purposes shall include:
(i) Any investment asset held by the
plan on the last day of the plan year;
and
(ii) Any investment asset which was
purchased at any time during the plan
year and was sold at any time before
the last day of the plan year, except as
provided by paragraphs (b)(2) and (b)(3)
of this section.
(2) Assets held for investment purposes shall not include any investment
which was not held by the plan on the
last day of the plan year for which the
annual report is filed if that invest-

§ 2520.103–11

ment falls within any of the following
categories:
(i) Debt obligations of the United
States or any agency of the United
States;
(ii) Interests issued by a company
registered under the Investment Company Act of 1940;
(iii) Bank certificates of deposit with
a maturity of not more than one year;
(iv) Commerical paper with a maturity of not more than nine months if it
is ranked in the highest rating category by at least two nationally recognized statistical rating services and is
issued by a company required to file reports with the Securities and Exchange
Commission under section 13 of the Securities Exchange Act of 1934;
(v) Participations in a bank common
or collective trust;
(vi) Participations in an insurance
company pooled separate account;
(vii) Securities purchased from a person registered as a broker-dealer under
the Securities Exchange Act of 1934 and
listed on a national securities exchange
registered under section 6 of the Securities Exchange Act of 1934 or quoted
on NASDAQ;
(3) Assets held for investment purposes shall not include any investment
which was not held by the plan on the
last day of the plan year for which the
annual report is filed if that investment is reported on the annual report
of that same plan in any of the following:
(i) The schedule of each transaction
involving a person known to be a party
in
interest
required
by
section
103(b)(3)(D) of the Act and § 2520.103–
10(b)(3);
(ii) The schedule of loans or fixed income obligations in default required by
section 103(b)(3)(E) of the Act and
§ 2520.103–10(b)(4);
(iii) The schedule of leases in default
or classified as uncollectible required
by section 103(b)(3)(F) of the Act and
§ 2520.103–10(b)(5); or
(iv) The schedule of reportable transactions required by section 103(b)(3)(H)
of the Act and § 2520.103–10(b)(6).
(c) Examples. (1) On February 1, 1977,
plan N purchases an interest in registered investment company F (fund
F). Fund F is not a party in interest
with respect to plan N. On November 1,

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§ 2520.103–12

29 CFR Ch. XXV (7–1–19 Edition)

1977, plan N sells this interest in fund F
and purchases 1,000 shares of stock S,
which the plan holds for the rest of the
plan year. Plan N must include in its
schedule of assets held for investment
purposes the 1,000 shares of stock S
under paragraph (b)(1) of this section,
but need not include the interest in
fund F because of paragraph (b)(2)(ii) of
this section.
(2) On February 1, 1977, plan N purchases a parcel of real estate from Mr.
M, who is not a party in interest with
respect to plan N. On November 1, 1977,
plan N sells the parcel of real estate for
cash to Mr. X, who is not a party in interest with respect to plan N. Plan N
uses the cash from this transaction to
purchase a 1-year certificate of deposit
in bank B, which it holds until maturity in 1978. Plan N must include in its
schedule of assets held for investment
purposes the 1-year certificate of deposit in bank B under paragraph
(b)(1)(i) of this section, and must also
include the parcel of real estate under
paragraph (b)(1)(ii) of this section.
(d) Special rule for certain participantdirected transactions. Cost information
may be omitted from the schedule of
assets held for investment purposes for
assets described in paragraphs (b)(1)(i)
and (b)(1)(ii) of this section only with
respect to participant or beneficiary
directed transactions under an individual account plan. For purposes of
this section only, a transaction will be
considered directed by a participant or
beneficiary if it has been authorized by
such participant or beneficiary.

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[43 FR 10140, Mar. 10, 1978, as amended at 65
FR 21083, Apr. 19, 2000]

§ 2520.103–12 Limited exemption and
alternative method of compliance
for annual reporting of investments
in certain entities.
(a) This section prescribes an exemption from and alternative method of
compliance with the annual reporting
requirements of part 1 of title I of
ERISA for employee benefit plans
whose assets are invested in certain entities described in paragraph (c). A plan
utilizing this method of reporting shall
include as part of its annual report the
current value of its investment or
units of participation in the entity in
the manner prescribed by the Return/

Report Form and the instructions
thereto. The plan is not required to include in its annual report any information regarding the underlying assets or
individual transactions of the entity,
provided the information described in
paragraph (b) regarding the entity is
reported directly to the Department on
behalf of the plan administrator on or
before the filing due date for the entity
in accordance with the instructions to
the Form 5500 Annual Return/Report.
The information described in paragraph (b), however, shall be considered
as part of the annual report for purposes of the requirements of section
104(a)(1) of the Act and §§ 2520.104a–5
and 2520.104a–6.
(b) The following information must
be filed regarding the entity described
in paragraph (c) of this section:
(1) A Form 5500 ‘‘Annual Return/Report of Employee Benefit Plan’’ and
any statements or schedules required
to be attached to the form for such entity, completed in accordance with the
instructions for the form, including
Schedule A (Insurance Information),
Schedule C (Service Provider Information), Schedule D (DFE/Participating
Plan Information), Schedule G (Financial Transaction Schedules), Schedule
H (Financial Information), and the
schedules described in § 2520.103–10(b)(1)
and (b)(2). See the instructions for this
form. The information reported shall
be for the fiscal year of such entity
ending with or within the plan year for
which the annual report of the plan is
made.
(2) A report of an independent qualified public accountant regarding the financial statements and schedules described in paragraph (b)(1) of this section which meets the requirements of
§ 2520.103–1(b)(5).
(c) This method of reporting is available to any employee benefit plan
which has invested in an entity the assets of which are deemed to include
plan assets under § 2510.3–101, provided
the entity holds the assets of two or
more plans which are not members of a
‘‘related group’’ of employee benefit
plans as that term is defined in paragraph (e) of this section. The method of
reporting is not available for investments in an insurance company pooled

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Employee Benefits Security Admin., Labor
separate account or a common or collective trust maintained by a bank,
trust company, or similar institution.
(d) The examination and report of an
independent qualified public accountant required by § 2520.103–1 for a plan
utilizing the method of reporting described in this section need not extend
to any information concerning an entity which is reported directly to the Department under paragraph (b) of this
section.
(e) A ‘‘related group’’ of employee
benefit plans consists of every group of
two or more employee benefit plans—
(1) Each of which receives 10 percent
or more of its aggregate contributions
from the same employer or from members of the same controlled group of
corporations (as determined under section 1563(a) of the Internal Revenue
Code, without regard to section
1563(a)(4) thereof); or
(2) Each of which is either maintained by, or maintained pursuant to a
collective bargaining agreement negotiated by, the same employee organization or affiliated employee organizations. For purposes of this paragraph,
an ‘‘affiliate’’ of an employee organization means any person controlling,
controlled by, or under common control with such organization, and includes any organization chartered by
the same parent body, or governed by
the same constitution and bylaws, or
having the relation of parent and subordinate.
(f) Electronic filing. See § 2520.104a–2
and the instructions for the Form 5500
‘‘Annual Return/Report of Employee
Benefit Plan’’ for electronic filing requirements. The entity described in
paragraph (c) of this section must
maintain an original copy, with all required signatures, as part of its
records.

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[51 FR 41287, Nov. 13, 1986, as amended at 65
FR 21083, Apr. 19, 2000; 71 FR 41368, July 21,
2006]

§ 2520.103–13 Special terminal report
for abandoned plans.
(a) General. The terminal report required to be filed by the qualified termination administrator pursuant to
§ 2578.1(d)(2)(viii) of this chapter shall
consist of the items set forth in paragraph (b) of this section. Such report

§ 2520.103–13

shall be filed in accordance with the
method of filing set forth in paragraph
(c) of this section and at the time set
forth in paragraph (d) of this section.
(b) Contents. The terminal report described in paragraph (a) of this section
shall contain:
(1) Identification information concerning the qualified termination administrator and the plan being terminated.
(2) The total assets of the plan as of
the date the plan was deemed terminated under § 2578.1(c) of this chapter,
prior to any reduction for termination
expenses and distributions to participants and beneficiaries.
(3) The total termination expenses
paid by the plan and a separate schedule identifying each service provider
and amount received, itemized by expense.
(4) The total distributions made pursuant to § 2578.1(d)(2)(vii) of this chapter and a statement regarding whether
any such distributions were transfers
under § 2578.1(d)(2)(vii)(B) of this chapter.
(5) The identification, fair market
value and method of valuation of any
assets with respect to which there is no
readily ascertainable fair market
value.
(c) Method of filing. The terminal report described in paragraph (a) shall be
filed:
(1) On the most recent Form 5500
available as of the date the qualified
termination administrator satisfies the
requirements in § 2578.1(d)(2)(i) through
§ 2578.1(d)(2)(vii) of this chapter; and
(2) In accordance with the Form’s instructions pertaining to terminal reports of qualified termination administrators.
(d) When to file. The qualified termination administrator shall file the terminal report described in paragraph (a)
within two months after the end of the
month in which the qualified termination administrator satisfies the requirements in § 2578.1(d)(2)(i) through
§ 2578.1(d)(2)(vii) of this chapter.
(e) Limitation. (1) Except as provided
in this section, no report shall be required to be filed by the qualified termination administrator under part 1 of

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§ 2520.104–1

29 CFR Ch. XXV (7–1–19 Edition)

title I of ERISA for a plan being terminated pursuant to § 2578.1 of this chapter.
(2) Filing of a report under this section by the qualified termination administrator shall not relieve any other
person from any obligation under part
1 of title I of ERISA.
[71 FR 20853, Apr. 21, 2006]

Subpart D—Provisions Applicable
to Both Reporting and Disclosure Requirements
(The information collection requirements
contained in subpart D were approved by the
Office of Management and Budget under control number 1210–0016)

§ 2520.104–1 General.
The administrator of an employee
benefit plan covered by part 1 of title I
of the Act must file reports and additional information with the Secretary
of Labor, and disclose reports, statements, and documents to plan participants and to beneficiaries receiving
benefits from the plan. The regulations
contained in this subpart are applicable to both the reporting and disclosure
requirements of part 1 of title I of the
Act. Regulations concerning only a
plan administrator’s duty of reporting
to the Secretary of Labor are set forth
in subpart E of this part, and those applicable only to the duty of disclosure
to participants and beneficiaries are
set forth in subpart F of this part.
[41 FR 16962, Apr. 23, 1976]

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§§ 2520.104–2—2520.104–3

[Reserved]

§ 2520.104–4 Alternative
method
of
compliance for certain successor
pension plans.
(a) General. Under the authority of
section 110 of the Act, this section sets
forth an alternative method of compliance for certain successor pension
plans in which some participants and
beneficiaries not only have their rights
set out in the plan, but also retain eligibility for certain benefits under the
terms of a former plan which has been
merged into the successor. This section
is applicable only to plan mergers
which occur after the issuance by the
successor plan of the initial summary

plan description under the Act. Under
the alternative method, the plan administrator of the successor plan is not
required to describe relevant provisions of merged plans in summary plan
descriptions of the successor plan furnished after the merger to that class of
participants and beneficiaries still affected by the terms of the merged
plans.
(b) Scope and application. This alternative method of compliance is available only if:
(1) The plan administrator of the successor plan furnishes to the participants covered under the predecessor
plan and beneficiaries receiving pension benefits under the merged plan
within 90 days after the effective date
of the merger:
(i) A copy of the most recent summary plan description of the successor
plan;
(ii) A copy of any summaries of material modifications to the successor plan
not incorporated in the most recent
summary plan description; and
(iii) A separate statement containing
a brief description of the merger, a description of the provisions of, and benefits provided by, the merged and successor plans which are applicable to
the participants and beneficiaries of
the merged plan; and a notice that copies of the merged and successor plan
documents, as well as the plan merger
documents (including the portions of
any corporate merger documents which
describe or control the plan merger),
are available for inspection and that
copies may be obtained upon written
request for a duplication charge (pursuant to § 2520.104b–30); and
(2) After the merger, the plan administrator, in all subsequent summary
plan descriptions furnished pursuant to
§ 2520.104b–2(a)—
(i) Clearly and conspicuously identifies the class of participants and beneficiaries affected by the provisions of
the merged plan, and
(ii) States that the documents described in paragraph (b)(1) of this section are available for inspection and
that copies may be obtained upon written request for a duplication charge
(pursuant to § 2520.104b–30).
[42 FR 37182, July 19, 1977, as amended at 67
FR 776, Jan. 7, 2002]

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Employee Benefits Security Admin., Labor

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§§ 2520.104–5—2520.104–6

[Reserved]

§ 2520.104–20 Limited exemption for
certain small welfare plans.
(a) Scope. Under the authority of section 104(a)(3) of the Act, the administrator of any employee welfare benefit
plan which covers fewer than 100 participants at the beginning of the plan
year and which meets the requirements
of paragraph (b) of this section is exempted from certain reporting and disclosure provisions of the Act. Specifically, the administrator of such plan is
not required to file with the Secretary
an annual or terminal report. In addition, the administrator of a plan exempted under this section—
(1) Is not required to furnish participants covered under the plan and beneficiaries receiving benefits under the
plan with statements of the plan’s assets and liabilities and receipts and disbursements and a summary of the annual report required by section 104(b)(3)
of the Act;
(2) Is not required to furnish upon
written request of any participant or
beneficiary a copy of the annual report
and any terminal report, as required by
section 104(b)(4) of the Act;
(3) Is not required to make copies of
the annual report available for examination by any participant or beneficiary in the principal office of the administrator and such other places as
may be necessary, as required by section 104(b)(2) of the Act.
(b) Application. This exemption applies only to welfare benefit plans—
(1) Which have fewer than 100 participants at the beginning of the plan year;
(2)(i) For which benefits are paid as
needed solely from the general assets
of the employer or employee organization maintaining the plan, or
(ii) The benefits of which are provided exclusively through insurance
contracts or policies issued by an insurance company or similar organization which is qualified to do business in
any State or through a qualified health
maintenance organization as defined in
section 1310(d) of the Public Health
Service Act, as amended, 42 U.S.C.
300e–9(d), the premiums for which are
paid directly by the employer or employee organization from its general
assets or partly from its general assets

§ 2520.104–20

and partly from contributions by its
employees or members, Provided, That
contributions by participants are forwarded by the employer or employee
organization within three months of
receipt, or
(iii) Both;
(3) For which, in the case of an insured plan—
(i) Refunds, to which contributing
participants are entitled, are returned
to them within three months of receipt
by the employer or employee organization, and
(ii) Contributing participants are informed upon entry into the plan of the
provisions of the plan concerning the
allocation of refunds; and
(4) Which are not subject to the Form
M–1 requirements under § 2520.101–2
(Filing by Multiple Employer Welfare
Arrangements and Certain Other Related Entities).
(c) Limitations. This exemption does
not exempt the administrator of an
employee benefit plan from any other
requirement of title I of the Act, including the provisions which require
that plan administrators furnish copies
of the summary plan description to
participants and beneficiaries (section
104(b)(1)) and furnish certain documents to the Secretary of Labor upon
request (section 104(a)(6)), and which
authorize the Secretary of Labor to
collect information and data from employee benefit plans for research and
analysis (section 513).
(d) Examples. (1) A welfare plan has 75
participants at the beginning of the
plan year and 105 participants at the
end of the plan year. Plan benefits are
fully insured and premiums are paid directly to the insurance company by the
employer pursuant to an insurance
contract purchased with premium payments derived half from the general assets of the employer and half from employee contributions (which the employer forwards within three months of
receipt). Refunds to the plan are paid
to participating employees within
three months of receipt as provided in
the plan and as described to each participant upon entering the plan. The
plan appoints the employer as its plan
administrator. The employer, as plan
administrator, provides summary plan

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§ 2520.104–21

29 CFR Ch. XXV (7–1–19 Edition)

descriptions to participants and beneficiaries. He also makes copies of certain plan documents available at the
plan’s principal office and such other
places as necessary to give participants
reasonable access to them. The exemption provided by § 2520.104–20 applies
even though the plan has more than 100
participants by the end of the plan
year, because it had fewer than 100 participants at the beginning of the plan
year and otherwise satisfied the conditions of the exemption.
(2) A welfare plan is established and
maintained in the same way as the
plan described in example (1), except
that a trade association which sponsors
the plan is the holder of the insurance
contract. Since the plan still sends the
premium payments directly to the insurance company, the exemption applies, as in example (1).

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[43 FR 10148, Mar. 10, 1978, as amended at 46
FR 5884, Jan. 21, 1981; 67 FR 776, Jan. 7, 2002;
78 FR 13796, Mar. 1, 2013]

§ 2520.104–21 Limited exemption for
certain group insurance arrangements.
(a) Scope. Under the authority of section 104(a)(3) of the Act, the administrator of any employee welfare benefit
plan which covers fewer than 100 participants at the beginning of the plan
year and which meets the requirements
of paragraph (b) of this section is exempted from certain reporting and disclosure provisions of the Act. Specifically, the administrator of such plan is
not required to file with the Secretary
a terminal report or furnish upon written request of any participant or beneficiary a copy of any terminal report as
required by section 104(b)(4) of the Act.
(b) Application. This exemption applies only to welfare plans, each of
which has fewer than 100 participants
at the beginning of the plan year and
which are part of a group insurance arrangement if such arrangement:
(1) Provides benefits to the employees of two or more unaffiliated employers, but not in connection with a multiemployer plan as defined in section
3(37) of the Act and any regulations
prescribed under the Act concerning
section 3(37);
(2) Fully insures one or more welfare
plans of each participating employer

through insurance contracts purchased
solely by the employers or purchased
partly by the employers and partly by
their participating employees, with all
benefit payments made by the insurance company: Provided, That—
(i) Contributions by participating
employees are forwarded by the employers within three months of receipt,
(ii) Refunds, to which contributing
participants are entitled, are returned
to them within three months of receipt, and
(iii) Contributing participants are informed upon entry into the plan of the
provisions of the plan concerning the
allocation of refunds; and
(3) Uses a trust (or other entity such
as a trade association) as the holder of
the insurance contracts and uses a
trust as the conduit for payment of
premiums to the insurance company.
(c) Limitations. This exemption does
not exempt the administrator of an
employee benefit plan from any other
requirement of title I of the Act, including the provisions which require
that plan administrators furnish copies
of the summary plan description to
participants and beneficiaries (section
104(b)(1)), file an annual report with the
Secretary of Labor (section 104(a)(1))
and furnish certain documents to the
Secretary of Labor upon request (section 104(a)(6)), and authorize the Secretary of Labor to collect information
and data from employee benefit plans
for research and analysis (section 513).
(d) Examples. (1) A welfare plan has 25
participants at the beginning of the
plan year. It is part of a group insurance arrangement of a trade association which provides benefits to employees of two or more unaffiliated employers, but not in connection with a multiemployer plan as defined in the Act.
Plan benefits are fully insured pursuant to insurance contracts purchased
with premium payments derived half
from employee contributions (which
the employer forwards within three
months of receipt) and half from the
general assets of each participating
employer. Refunds to the plan are paid
to participating employees within
three months of receipt as provided in
the plan and as described to each participant upon entering the plan. The
trade association holds the insurance

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Employee Benefits Security Admin., Labor
contracts. A trust acts as a conduit for
payments, receiving premium payments from participating employers
and paying the insurance company.
The plan appoints the trade association
as its plan administrator. The association, as plan administrator, provides
summary plan descriptions to participants and beneficiaries, enlisting the
help of participating employers in carrying out this distribution. The plan
administrator also makes copies of certain plan documents available to the
plan’s principal office and such other
places as necessary to give participants
reasonable access to them. The plan
administrator files with the Secretary
an annual report covering activities of
the plan, as required by the Act and
such regulations as the Secretary may
issue. The exemption provided by this
section applies because the conditions
of paragraph (b) have been satisfied.
(2) Assume the same facts as paragraph (d)(1) of this section except that
the premium payments for the insurance company are paid from the trust
to an independent insurance brokerage
firm acting as the agent of the insurance company. The trade association is
the holder of the insurance contract.
The plan appoints an officer of the participating employer as the plan administrator. The officer, as plan administrator, performs the same reporting
and disclosure functions as the administrator in paragraph (d)(1) of this section, enlisting the help of the association in providing summary plan descriptions and necessary information.
The exemption provided by this section
applies.
(3) The facts are the same as paragraph (d)(1) of this section except the
welfare plan has 125 participants at the
beginning of the plan year. The exemption provided by this section does not
apply because the plan had 100 or more
participants at the beginning of the
plan year. See, however, § 2520.104–43.
(4) The facts are the same as paragraph (d)(2) of this section except the
welfare plan has 125 participants. The
exemption provided by this section
does not apply because the plan had 100
or more participants at the beginning
of the plan year. See, however,
§ 2520.104–43.

§ 2520.104–22

(e) Applicability date. For purposes of
paragraph (b)(3) of this section, the arrangement may continue to use an entity (such as a trade association) as the
conduit for the payment of insurance
premiums to the insurance company
for reporting years of the arrangement
beginning before January 1, 2001.
[43 FR 10149, Mar. 10, 1978, as amended at 65
FR 21084, Apr. 19, 2000; 67 FR 776, Jan. 7, 2002]

§ 2520.104–22 Exemption from reporting and disclosure requirements for
apprenticeship and training plans.
(a) An employee welfare benefit plan
that provides exclusively apprenticeship training benefits or other training
benefits or that provides exclusively
apprenticeship and training benefits
shall not be required to meet any requirement of part 1 of the Act, provided that the administrator of such
plan:
(1) Has filed with the Secretary the
notice described in paragraph (b) of
this section;
(2) Takes steps reasonably designed
to ensure that the information required to be contained in such notice is
disclosed to employees of employers
contributing to the plan who may be
eligible to enroll in any course of study
sponsored or established by the plan;
and
(3) Makes such notice available to
such employees upon request.
(b) The notice referred to in paragraph (a) of this section shall contain
accurate information concerning:
(1) The name of the plan;
(2) The Employer Identification
Number (EIN) of the plan sponsor;
(3) The name of the plan administrator;
(4) The name and location of an office
or person from whom an interested individual can obtain:
(i) A description of any existing or
anticipated future course of study
sponsored or established by the plan,
including any prerequisites for enrolling in such course; and
(ii) A description of the procedure by
which to enroll in such course.
(c) Filing address. The notice referred
to in paragraph (a) of this section shall
be filed with the Secretary of Labor by
mailing it to: Apprenticeship and
Training Plan Exemption, Employee

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§ 2520.104–23

29 CFR Ch. XXV (7–1–19 Edition)

Benefits
Security
Administration,
Room N–1513, U.S. Department of
Labor, 200 Constitution Avenue NW.,
Washington, DC 20210, or by delivering
it during normal working hours to the
Employee Benefits Security Administration, Room N–1513, U.S. Department
of Labor, 200 Constitution Avenue NW.,
Washington, DC.
[45 FR 15529, Mar. 11, 1980, as amended at 45
FR 27933, Apr. 25, 1980; 54 FR 8629, Mar. 1,
1989; 68 FR 16400, Apr. 3, 2003]
EFFECTIVE DATE NOTE: At 84 FR 27955, June
17, 2019, § 2520.104–22 was amended by revising
paragraph (c), effective Aug. 16, 2019. For the
convenience of the user, the revised text is
set forth as follows:
§ 2520.104–22 Exemption from reporting and
disclosure requirements for apprenticeship and training plans.

*

*

*

*

*

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(c) The notice referred to in paragraph (a)
of this section shall be filed with the Secretary electronically in accordance with the
instructions published by the Department.

§ 2520.104–23 Alternative method of
compliance for pension plans for
certain selected employees.
(a) Purpose and scope. (1) This section
contains an alternative method of compliance with the reporting and disclosure requirements of part 1 of title I of
the Employee Retirement Income Security Act of 1974 for unfunded or insured pension plans maintained by an
employer for a select group of management or highly compensated employees, pursuant to the authority of the
Secretary of Labor under section 110 of
the Act (88 Stat. 851).
(2) Under section 110 of the Act, the
Secretary is authorized to prescribe an
alternative method for satisfying any
requirement of part 1 of title I of the
Act with respect to any pension plans,
or class of pension plans, subject to
such requirement.
(b) Filing obligation. Under the authority of section 110 of the Act, an alternative form of compliance with the
reporting and disclosure requirements
of part 1 of the Act is provided for certain pension plans for a select group of
management or highly compensated
employees. The administrator of a pension plan described in paragraph (d)
shall be deemed to satisfy the report-

ing and disclosure provisions of part 1
of title I of the Act by—
(1) Filing a statement with the Secretary of Labor that includes the name
and address of the employer, the employer identification number (EIN) assigned by the Internal Revenue Service, a declaration that the employer
maintains a plan or plans primarily for
the purpose of providing deferred compensation for a select group of management or highly compensated employees, and a statement of the number of
such plans and the number of employees in each, and
(2) Providing plan documents, if any,
to the Secretary upon request as required by section 104(a)(6) of the Act.
Only one statement need be filed for
each employer maintaining one or
more of the plans described in paragraph (d) of this section. For plans in
existence on May 4, 1975, the statement
shall be filed on or before August 31,
1975. For a plan to which part 1 of title
I of the Act becomes applicable after
May 4, 1975, the statement shall be
filed within 120 days after the plan becomes subject to part 1.
(c) Filing address. Statements may be
filed with the Secretary of Labor by
mailing them addressed to: Top Hat
Plan Exemption, Employee Benefits
Security Administration, Room N–1513,
U.S. Department of Labor, 200 Constitution Avenue NW., Washington, DC
20210, or by delivering it during normal
working hours to the Employee Benefits Security Administration, Room N–
1513, U.S. Department of Labor, 200
Constitution Avenue NW., Washington,
DC.
(d) Application. The alternative form
of compliance described in paragraph
(b) of this section is available only to
employee pension benefit plans—
(1) Which are maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly
compensated employees, and
(2) For which benefits (i) are paid as
needed solely from the general assets
of the employer, (ii) are provided exclusively through insurance contracts or
policies, the premiums for which are
paid directly by the employer from its
general assets, issued by an insurance
company or similar organization which

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Employee Benefits Security Admin., Labor
is qualified to do business in any State,
or (iii) both.
[40 FR 34533, Aug. 15, 1975, as amended at 54
FR 8629, Mar. 1, 1989; 67 FR 776, Jan. 7, 2002;
68 FR 16400, Apr. 3, 2003]
EFFECTIVE DATE NOTE: At 84 FR 27955, June
17, 2019, § 2520.104–23 was amended by revising
paragraph (c), effective Aug. 16, 2019. For the
convenience of the user, the revised text is
set forth as follows:
§ 2520.104–23 Alternative method of compliance for pension plans for certain selected employees.

*

*

*

*

*

(c) Electronic filing of statement. Statements
referred to in paragraph (b) of this section
shall be filed with the Secretary electronically in accordance with the instructions
published by the Department.

*

*

*

*

*

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§ 2520.104–24 Exemption for welfare
plans for certain selected employees.
(a) Purpose and scope. (1) This section,
under the authority of section 104(a)(3)
of the Employee Retirement Income
Security Act of 1974, exempts unfunded
or insured welfare plans maintained by
an employer for the purpose of providing benefits for a select group of
management or highly compensated
employees from the reporting and disclosure provisions of part 1 of title I of
the Act, except for the requirement to
provide plan documents to the Secretary of Labor upon request under section 104(a)(1) of the Act.
(2) Under section 104(a)(3) of the Act,
the Secretary is authorized to exempt
by regulation any welfare benefit plan
from all or part of the reporting and
disclosure requirements of title I of the
Act.
(b) Exemption. Under the authority of
section 104(a)(3) of the Act, each employee welfare benefit plan described in
paragraph (c) of this section is exempted from the reporting and disclosure
provisions of part 1 of title I of the Act,
except for providing plan documents to
the Secretary of Labor upon request as
required by section 104(a)(6).
(c) Application. This exemption is
available only to employee welfare
benefit plans:

§ 2520.104–26

(1) Which are maintained by an employer primarily for the purpose of providing benefits for a select group of
management or highly compensated
employees, and
(2) For which benefits (i) are paid as
needed solely from the general assets
of the employer, (ii) are provided exclusively through insurance contracts or
policies, the premiums for which are
paid directly by the employer from its
general assets, issued by an insurance
company or similar organization which
is qualified to do business in any State,
or (iii) both.
[40 FR 34533, Aug. 15, 1975, as amended at 67
FR 776, Jan. 7, 2002]

§ 2520.104–25 Exemption from reporting and disclosure for day care centers.
Under the authority of section
104(a)(3) of the Act, day care centers
are exempted from the reporting and
disclosure provisions of part 1 of title I
of the Act, except for providing plan
documents to the Secretary upon request as required under section
104(a)(6) of the Act.
[40 FR 34533, Aug. 15, 1975, as amended at 67
FR 776, Jan. 7, 2002]

§ 2520.104–26 Limited exemption for
certain unfunded dues financed
welfare plans maintained by employee organizations.
(a) Scope. Under the authority of section 104(a)(3) of the Act, a welfare benefit plan that meets the requirements
of paragraph (b) of this section is exempted from the provisions of the Act
that require filing with the Secretary
an annual report and furnishing a summary annual report to participants and
beneficiaries. Such plans may use a
simplified method of reporting and disclosure to comply with the requirement to furnish a summary plan description to participants and beneficiaries, as follows:
(1) In lieu of filing an annual report
with the Secretary or distributing a
summary annual report, a filing is
made of Report Form LM–2 or LM–3,
pursuant to the Labor-Management
Reporting
and
Disclosure
Act
(LMRDA) and regulations thereunder,
and

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§ 2520.104–27

29 CFR Ch. XXV (7–1–19 Edition)

(2) In lieu of a summary plan description, the employee organization constitution or by-laws may be furnished
in accordance with § 2520.104b–2 to participants and beneficiaries together
with any supplement to such document
necessary to meet the requirements of
§§ 2520.102–2 and 2520.102–3.
(b) Application. This exemption is
available only to welfare benefit plans
maintained by an employee organization, as that term is defined in section
3(4) of the Act, paid for out of the employee organization’s general assets,
which are derived wholly or partly
from membership dues, and which
cover employee organization members
and their beneficiaries.
(c) Limitations. This exemption does
not exempt the administrator from any
other requirement of part 1 of title I of
the Act.

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[42 FR 37184, July 19, 1977, as amended at 67
FR 776, Jan. 7, 2002]

§ 2520.104–27 Alternative method of
compliance for certain unfunded
dues financed pension plans maintained by employee organizations.
(a) Scope. Under the authority of section 110 of the Act, a pension benefit
plan that meets the requirements of
paragraph (b) of this section is exempted from the provisions of the Act that
require filing with the Secretary an annual report and furnishing a summary
annual report to participants and beneficiaries receiving benefits. Such plans
may use a simplified method of reporting and disclosure to comply with the
requirement to furnish a summary plan
description to participants and beneficiaries receiving benefits, as follows:
(1) In lieu of filing an annual report
with the Secretary or distributing a
summary annual report, a filing is
made of Report Form LM–2 or LM–3,
pursuant to the Labor-Management
Reporting
and
Disclosure
Act
(LMRDA) and regulations thereunder,
and
(2) In lieu of a summary plan description, the employee organization constitution or bylaws may be furnished in
accordance with § 2520.104b–2 to participants and beneficiaries together with
any supplement to such document necessary to meet the requirements of
§§ 2520.102–2 and 2520.102–3.

(b) Application. This exemption is
available only to pension benefit plans
maintained by an employee organization, as that term is defined in section
3(4) of the Act, paid for out of the employee organization’s general assets,
which are derived wholly or partly
from membership dues, and which
cover employee organization members
and their beneficiaries.
(c) Limitations. This exemption does
not exempt the administrator from any
other requirement of part 1 of title I of
the Act.
[42 FR 37184, July 19, 1977, as amended at 67
FR 777, Jan. 7, 2002]

§ 2520.104–28

[Reserved]

§ 2520.104–41 Simplified annual reporting requirements for plans with
fewer than 100 participants.
(a) General. (1) Under the authority of
section 104(a)(2)(A), the Secretary of
Labor may prescribe simplified annual
reporting for employee pension benefit
plans with fewer than 100 participants.
(2) Under the authority of section
104(a)(3), the Secretary of Labor may
provide a limited exemption for any
employee welfare benefit plan with respect to certain annual reporting requirements.
(b) Application. The administrator of
an employee pension or welfare benefit
plan which covers fewer than 100 participants at the beginning of the plan
year and the administrator of an employee pension or welfare benefit plan
described in § 2520.103–1(d) may file the
simplified annual report described in
paragraph (c) of this section in lieu of
the
annual
report
described
in
§ 2520.103–1(b).
(c) Contents. The administrator of an
employee pension or welfare benefit
plan described in paragraph (b) of this
section shall file, in the manner described in § 2520.104a–5, a completed
Form 5500 ‘‘Annual Return/Report of
Employee Benefit Plan’’ including, if
applicable, the information described
in § 2520.103–1(f) or, to the extent eligible, a completed Form 5500–SF ‘‘Short
Form Annual Return/Report of Small
Employee Benefit Plan,’’ and any required schedules or statements prescribed by the instructions to the applicable form, and, unless waived by

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Employee Benefits Security Admin., Labor
§ 2520.104–44 or § 2520.104–46, a report of
an independent qualified public accountant meeting the requirements of
§ 2520.103–1(b).
[43 FR 10150, Mar. 10, 1978, as amended at 45
FR 51446, Aug. 1, 1980; 54 FR 8629, Mar. 1, 1989;
65 FR 21084, Apr. 19, 2000; 65 FR 62973, Oct. 19,
2000; 78 FR 13796, Mar. 1, 2013]

§ 2520.104–42 Waiver of certain actuarial information in the annual report.
Under the authority of section
104(a)(2)(A) of ERISA, the requirement
of section 103(d)(6) of ERISA that the
annual report include as part of the actuarial statement (Schedule B) 1 the
present value of all of the plan’s liabilities for nonforfeitable pension benefits
allocated by termination priority categories, as set forth in section 4044 of
title IV of ERISA, and the actuarial assumptions used in these computations,
is waived.
[44 FR 5446, Jan. 26, 1979]

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§ 2520.104–43 Exemption from annual
reporting requirement for certain
group insurance arrangements.
(a) General. Under the authority of
section 104(a)(3) of the Act, the administrator of an employee welfare benefit
plan which meets the requirements of
paragraph (b) of this section is not required to file an annual report with the
Secretary of Labor as required by section 104(a)(1) of the Act.
(b) Application. (1) This exemption applies only to a welfare plan for a plan
year in which (i) such plan meets the
requirements of § 2520.104–21, except the
requirement that the plan cover fewer
than 100 participants at the beginning
of the plan year, and
(ii) An annual report containing the
items set forth in § 2520.103–2 has been
filed with the Secretary of Labor in accordance with § 2520.104a–6 by the trust
or other entity which is the holder of
the group insurance contracts by which
plan benefits are provided.
(2) For purposes of this section, the
terms ‘‘group insurance arrangement’’
or ‘‘trust or other entity’’ shall be used
in place of the terms ‘‘plan’’ and ‘‘plan
administrator,’’
as
applicable,
in
1 Schedule B was filed as part of the original document.

§ 2520.104–44

§§ 2520.103–3,
2520.103–4,
2520.103–6,
2520.103–8, 2520.103–9 and 2520.103–10.
(c) Limitation. This provision does not
exempt the administrator of an employee benefit plan which meets the requirements of paragraph (b) from furnishing a copy of a summary annual report to participants and beneficiaries
of the plan, as required by section
104(b)(3) of the Act.
[43 FR 10150, Mar. 10, 1978, as amended at 65
FR 21084, Apr. 19, 2000; 67 FR 777, Jan. 7, 2002]

§ 2520.104–44 Limited exemption and
alternative method of compliance
for annual reporting by unfunded
plans and by certain insured plans.
(a) General. (1) Under the authority of
section 104(a)(3) of the Act, the Secretary of Labor may exempt an employee welfare benefit plan from any or
all of the reporting and disclosure requirements of title I. An employee welfare benefit plan which meets the requirements of paragraph (b)(1) of this
section is not required to comply with
the annual reporting requirements described in paragraph (c) of this section.
(2) Under the authority of section 110
of the Act, an alternative method of
compliance is prescribed for certain
employee pension benefit plans subject
to part 1, title I of the Act. An employee pension benefit plan which
meets the requirements of paragraph
(b)(2) or (b)(3) of this section is not required to comply with the annual reporting requirements described in
paragraph (c) of this section.
(b) Application. This section applies
only to:
(1) An employee welfare benefit plan
under the terms of which benefits are
to be paid—
(i) Solely from the general assets of
the employer or employee organization
maintaining the plan;
(ii) The benefits of which are provided exclusively through insurance
contracts or policies issued by an insurance company or similar organization which is qualified to do business in
any State or through a qualified health
maintenance organization as defined in
section 1310(d) of the Public Health
Service Act, as amended, 42 U.S.C.
300e–9(d), the premiums for which are
paid directly by the employer or employee organization from its general

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§ 2520.104–45

29 CFR Ch. XXV (7–1–19 Edition)

assets or partly from its general assets
and partly from contributions by its
employees or members, provided that
any plan assets held by such an insurance company are held solely in the
general account of such company or organization, contributions by participants are forwarded by the employer or
employee organization within three
months of receipt and, in the case of a
plan that provides for the return of refunds to contributing participants,
such refunds are returned to them
within three months of receipt by the
employer or employee organization, or
(iii) Partly in the manner specified in
paragraph (b)(1)(i) of this section and
partly in the manner specified in paragraph (b)(1)(ii) of this section; and
(2) A pension benefit plan the benefits of which are provided exclusively
through allocated insurance contracts
or policies which are issued by, and
pursuant to the specific terms of such
contracts or policies benefit payments
are fully guaranteed by an insurance
company or similar organization which
is qualified to do business in any State,
and the premiums for which are paid
directly by the employer or employee
organization from its general assets or
partly from its general assets and partly from contributions by its employees
or members: Provided, That contributions by participants are forwarded by
the employer or employee organization
to the insurance company or organization within three months of receipt
and, in the case of a plan that provides
for the return of refunds to contributing participants, such refunds are returned to them within three months of
receipt by the employer or employee
organization.
(c) Contents. An employee benefit
plan described in paragraph (b) of this
section is exempt from complying with
the following annual reporting requirements:
(1) Completing certain items of the
annual report relating to financial information and transactions entered
into by the plan as described in the instructions to the Form 5500 ‘‘Annual
Return/Report of Employee Benefit
Plan’’ and accompanying schedules;
(2) Engaging an independent qualified
public accountant pursuant to section
103(a)(3)(A) of the Act and § 2520.103–1(b)

to conduct an examination of the financial statements and schedules of
the plan; and
(3) Including in the annual report a
report of an independent qualified public accountant concerning the financial
statements and schedules required to
be a part of the annual report pursuant
to section 103(b) of the Act and
§ 2520.103–1(b).
(d) Limitation. This section does not
exempt any plan from filing an annual
report form with the Secretary in accordance with section 104(a)(1) of the
Act and § 2520.104a–5.
(e) Example. A welfare plan which is
funded entirely with insurance contracts and which meets all the requirements of exemption under § 2520.104–20
except that it covers 100 or more participants at the beginning of the plan
year is not exempt from the annual reporting requirements under § 2520.104–
20, but is exempt from certain reporting requirements under § 2520.104–44.
Under the latter section, such a welfare
plan should file Form 5500, including
Schedule A ‘‘Insurance Information.’’
However, the plan is not required to
engage an independent qualified public
accountant and need not complete certain items on form 5500.
[43 FR 10150, Mar. 10, 1978, as amended at 45
FR 51446, Aug. 1, 1980; 46 FR 5884, Jan. 21,
1981; 65 FR 21085, Apr. 19, 2000; 67 FR 777, Jan.
7, 2002; 72 FR 64728, Nov. 16, 2007]

§ 2520.104–45

[Reserved]

§ 2520.104–46 Waiver of examination
and report of an independent qualified public accountant for employee
benefit plans with fewer than 100
participants.
(a) General. (1) Under the authority of
section 103(a)(3)(A) of the Act, the Secretary may waive the requirements of
section 103(a)(3)(A) in the case of a plan
for which simplified annual reporting
has been prescribed in accordance with
section 104(a)(2) of the Act.
(2) Under the authority of section
104(a)(3) of the Act the Secretary may
exempt any employee welfare benefit
plan from certain annual reporting requirements.
(b) Application. (1)(i) The administrator of an employee pension benefit

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Employee Benefits Security Admin., Labor
plan for which simplified annual reporting has been prescribed in accordance with section 104(a)(2)(A) of the
Act and § 2520.104–41 is not required to
comply with the annual reporting requirements described in paragraph (c)
of this section, provided that with respect to each plan year for which the
waiver is claimed—
(A)(1) At least 95 percent of the assets of the plan constitute qualifying
plan assets within the meaning of paragraph (b)(1)(ii) of this section, or
(2) Any person who handles assets of
the plan that do not constitute qualifying plan assets is bonded in accordance with the requirements of section
412 of the Act and the regulations
issued thereunder, except that the
amount of the bond shall not be less
than the value of such assets;
(B) The summary annual report (described in § 2520.104b–10) or, in the case
of plans subject to section 101(f) of the
Act, the annual funding notice (described in § 2520.101–5), includes, in addition to any other required information:
(1) Except for qualifying plan assets
described in paragraph (b)(1)(ii)(A), (B)
and (F) of this section, the name of
each regulated financial institution
holding (or issuing) qualifying plan assets and the amount of such assets reported by the institution as of the end
of the plan year;
(2) The name of the surety company
issuing the bond, if the plan has more
than 5% of its assets in non-qualifying
plan assets;
(3) A notice indicating that participants and beneficiaries may, upon request and without charge, examine, or
receive copies of, evidence of the required bond and statements received
from the regulated financial institutions describing the qualifying plan assets; and
(4) A notice stating that participants
and beneficiaries should contact the
Regional Office of the U.S. Department
of Labor’s Employee Benefits Security
Administration if they are unable to
examine or obtain copies of the regulated financial institution statements
or evidence of the required bond, if applicable; and
(C) in response to a request from any
participant or beneficiary, the admin-

§ 2520.104–46

istrator, without charge to the participant or beneficiary, makes available
for examination, or upon request furnishes copies of, each regulated financial institution statement and evidence
of any bond required by paragraph
(b)(1)(i)(A)(2).
(ii) For purposes of paragraph (b)(1),
the term ‘‘qualifying plan assets’’
means:
(A) Qualifying employer securities,
as defined in section 407(d)(5) of the Act
and the regulations issued thereunder;
(B) Any loan meeting the requirements of section 408(b)(1) of the Act
and the regulations issued thereunder;
(C) Any assets held by any of the following institutions:
(1) A bank or similar financial institution as defined in § 2550.408b–4(c);
(2) An insurance company qualified
to do business under the laws of a
state;
(3) An organization registered as a
broker-dealer under the Securities Exchange Act of 1934; or
(4) Any other organization authorized
to act as a trustee for individual retirement accounts under section 408 of the
Internal Revenue Code.
(D) Shares issued by an investment
company registered under the Investment Company Act of 1940;
(E) Investment and annuity contracts issued by any insurance company qualified to do business under the
laws of a state; and,
(F) In the case of an individual account plan, any assets in the individual
account of a participant or beneficiary
over which the participant or beneficiary has the opportunity to exercise
control and with respect to which the
participant or beneficiary is furnished,
at least annually, a statement from a
regulated financial institution referred
to in paragraphs (b)(1)(ii)(C), (D) or (E)
of this section describing the assets
held (or issued) by such institution and
the amount of such assets.
(iii)(A) For purposes of this paragraph (b)(1), the determination of the
percentage of all plan assets consisting
of qualifying plan assets with respect
to a given plan year shall be made in
the same manner as the amount of the
bond is determined pursuant to
§§ 2580.412–11, 2580.412–14, and 2580.412–15.

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§ 2520.104–46

29 CFR Ch. XXV (7–1–19 Edition)

(B) Examples. Plan A, which reports
on a calendar year basis, has total assets of $600,000 as of the end of the 1999
plan year. Plan A’s assets, as of the end
of year, include: investments in various
bank, insurance company and mutual
fund products of $520,000; investments
in qualifying employer securities of
$40,000; participant loans, meeting the
requirements
of
ERISA
section
408(b)(1), totaling $20,000; and a $20,000
investment in a real estate limited
partnership. Because the only asset of
the plan that does not constitute a
‘‘qualifying plan asset’’ is the $20,000
real estate investment and that investment represents less than 5% of the
plan’s total assets, no bond would be
required under the proposal as a condition for the waiver for the 2000 plan
year. By contrast, Plan B also has total
assets of $600,000 as of the end of the
1999 plan year, of which $558,000 constitutes ‘‘qualifying plan assets’’ and
$42,000 constitutes non-qualifying plan
assets. Because 7%—more than 5%—of
Plan B’s assets do not constitute
‘‘qualifying plan assets,’’ Plan B, as a
condition to electing the waiver for the
2000 plan year, must ensure that it has
a fidelity bond in an amount equal to
at least $42,000 covering persons handling non-qualifying plan assets. Inasmuch as compliance with section 412
requires the amount of bonds to be not
less than 10% of the amount of all the
plan’s funds or other property handled,
the bond acquired for section 412 purposes may be adequate to cover the
non-qualifying plan assets without an
increase (i.e., if the amount of the bond
determined to be needed for the relevant persons for section 412 purposes
is at least $42,000). As demonstrated by
the foregoing example, where a plan
has more than 5% of its assets in nonqualifying plan assets, the bond required by the proposal is for the total
amount of the non-qualifying plan assets, not just the amount in excess of
5%.
(2) The administrator of an employee
welfare benefit plan that covers fewer
than 100 participants at the beginning
of the plan year is not required to comply with annual reporting requirements described in paragraph (c) of this
section.

(c) Waiver. The administrator of a
plan described in paragraph (b)(1) or (2)
of this section is not required to:
(1) Engage an independent qualified
public accountant to conduct an examination of the financial statements of
the plan;
(2) Include within the annual report
the financial statements and schedules
prescribed in section 103(b) of the Act
and §§ 2520.103–1, 2520.103–2, and 2520.103–
10; and
(3) Include within the annual report a
report of an independent qualified public accountant as prescribed in section
103(a)(3)(A) of the Act and § 2520.103–1.
(d) Limitations. (1) The waiver described in this section does not affect
the obligation of a plan described in
paragraph (b) (1) or (2) of this section
to file a Form 5500 ‘‘Annual Return/Report of Employee Benefit Plan,’’ including any required schedules or
statements prescribed by the instructions to the form. See § 2520.104–41.
(2) For purposes of this section, an
employee pension benefit plan for
which simplified annual reporting has
been prescribed includes an employee
pension benefit plan which elects to
file a Form 5500 as a small plan pursuant to § 2520.103–1(d) with respect to the
plan year for which the waiver is
claimed. See § 2520.104–41.
(3) For purposes of this section, an
employee welfare benefit plan that covers fewer than 100 participants at the
beginning of the plan year includes an
employee welfare benefit plan which
elects to file a Form 5500 as a small
plan pursuant to § 2520.103–1(d) with respect to the plan year for which the
waiver is claimed. See § 2520.104–41.
(4) A plan that elects to file a Form
5500 as a large plan pursuant to
§ 2520.103–1(d) may not claim a waiver
under this section.
(e) Model notice. The appendix to this
section contains model language for inclusion in the summary annual report
to assist plan administrators in complying with the requirements of paragraph (b)(1)(i)(B) of this section to
avail themselves of the waiver of examination and report of the independent
qualified public accountant for employee benefit plans with fewer than
100 participants. Use of the model language is not mandatory. In order to use

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Employee Benefits Security Admin., Labor
the model language in the plan’s summary annual report, administrators
must, in addition to any other information required to be in the summary annual report, select among alternative
language and add relevant information
where appropriate in the model language. Items of information that are
not applicable to a particular plan may
be deleted. Use of the model language,
appropriately modified and supplemented, will be deemed to satisfy the
notice content requirements of paragraph (b)(1)(i)(B) of this section.

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APPENDIX TO § 2520.104–46—MODEL SUMMARY
ANNUAL REPORT NOTICE (PLAN ADMINISTRATORS WILL NEED TO MODIFY THE MODEL TO
OMIT INFORMATION THAT IS NOT APPLICABLE TO THE PLAN)
The U.S. Department of Labor’s regulations require that an independent qualified
public accountant audit the plan’s financial
statements unless certain conditions are met
for the audit requirement to be waived. This
plan met the audit waiver conditions for the
plan year beginning (insert year) and therefore has not had an audit performed. Instead,
the following information is provided to assist you in verifying that the assets reported
on the (Form 5500 or Form 5500-SF—select as
applicable) were actually held by the plan.
At the end of the (insert year) plan year,
the plan had (include separate entries for
each regulated financial institution holding
or issuing qualifying plan assets):
[Set forth amounts and names of institutions as applicable where indicated], [(insert
$ amount) in assets held by (insert name of
bank)], [(insert $ amount) in securities held
by (insert name of registered broker-dealer)],
[(insert $ amount) in shares issued by (insert
name of registered investment company)],
[(insert $ amount) in investment or annuity
contract issued by (insert name of insurance
company)].
The plan receives year-end statements
from these regulated financial institutions
that confirm the above information. [Insert
as applicable—The remainder of the plan’s
assets were (1) qualifying employer securities, (2) loans to participants, (3) held in individual participant accounts with investments directed by participants and beneficiaries and with account statements from
regulated financial institutions furnished to
the participant or beneficiary at least annually, or (4) other assets covered by a fidelity
bond at least equal to the value of the assets
and issued by an approved surety company.]
Plan participants and beneficiaries have a
right, on request and free of charge, to get
copies of the financial institution year-end
statements and evidence of the fidelity bond.
If you want to examine or get copies of the

§ 2520.104–48

financial institution year-end statements or
evidence of the fidelity bond, please contact
[insert mailing address and any other available way to request copies such as e-mail and
phone number].
If you are unable to obtain or examine copies of the regulated financial institution
statements or evidence of the fidelity bond,
you may contact the regional office of the
U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) for assistance by calling toll-free 1.866.444.EBSA
(3272). A listing of EBSA regional offices can
be found at http://www.dol.gov/ebsa.
General information regarding the audit
waiver conditions applicable to the plan can
be found on the U.S. Department of Labor
Web site at http://www.dol.gov/ebsa under the
heading ‘‘Frequently Asked Questions.’’
[43 FR 10151, Mar. 10, 1978, as amended at 43
FR 14010, Apr. 4, 1978; 45 FR 51447, Aug. 1,
1980; 54 FR 8629, Mar. 1, 1989; 65 FR 21085, Apr.
19, 2000; 65 FR 62973, Oct. 19, 2000; 72 FR 64728,
Nov. 16, 2007; 80 FR 5663, Feb. 2, 2015]

§ 2520.104–47 Limited exemption and
alternative method of compliance
for filing of insurance company financial reports.
An administrator of an employee
benefit plan to which section 103(e)(2)
of the Act applies shall be deemed in
compliance with the requirement to include with its annual report a copy of
the financial report of the insurance
company, insurance service or similar
organization, provided that the administrator files a copy of such report
within 45 days of receipt of a written
request for such report by the Secretary of Labor.
[45 FR 14034, Mar. 4, 1980]

§ 2520.104–48 Alternative method of
compliance for model simplified
employee
pensions—IRS
Form
5305–SEP.
Under the authority of section 110 of
the Act the provisions of this section
are prescribed as an alternative method of compliance with the reporting
and disclosure requirements set forth
in part 1 of title I of the Employee Retirement Income Security Act of 1974
in the case of a simplified employee
pension (SEP) described in section
408(k) of the Internal Revenue Code of
1954 as amended (the Code) that is created by use without modification of Internal Revenue Service (IRS) Form
5305–SEP.

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§ 2520.104–49

29 CFR Ch. XXV (7–1–19 Edition)

(a) At the time an employee becomes
eligible to participate in the SEP
(whether at the creation of the SEP or
thereafter), the administrator of the
SEP (generally the employer establishing and maintaining the SEP) shall
furnish the employee with a copy of
the completed and unmodified IRS
Form 5305–SEP used to create the SEP,
including (1) the completed Contribution Agreement, (2) the General Information and Guidelines, and (3) the
Questions and Answers.
(b) Following the end of each calendar year the administrator of the
SEP shall notify each participant in
the SEP in writing of any employer
contributions made under the Contribution Agreement to the participant’s individual retirement account or
individual retirement annuity (IRA)
for that year.
(c) If the employer establishing and
maintaining the SEP selects, recommends, or in any other way influences employees to choose a particular
IRA or type of IRA into which contributions under the SEP will be made,
and if that IRA is subject to restrictions on a participant’s ability to withdraw funds (other than restrictions imposed by the Code that apply to all
IRAs), the administrator of the SEP
shall give to each employee, in writing,
within 90 days of the adoption of this
regulation or at the time such employee becomes eligible to participate
in the SEP, whichever is later, a clear
explanation of those restrictions and a
statement to the effect that other
IRAs, into which rollovers or employee
contributions may be made, may not
be subject to such restrictions.
[45 FR 24869, Apr. 11, 1980]

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§ 2520.104–49 Alternative method of
compliance for certain simplified
employee pensions.
Under the authority of section 110 of
the Act, the provisions of this section
are prescribed as an alternative method of compliance with the reporting
and disclosure requirements set forth
in part 1 of title I of the Act for a simplified employee pension (SEP) described in section 408(k) of the Internal
Revenue Code of 1954 as amended, except for:

A SEP that is created by proper use of
Internal Revenue Service Form 5305–
SEP, or; a SEP in connection with
which the employer who establishes or
maintains the SEP selects, recommends or influences its employees
to choose the IRAs into which employer contributions will be made and
those IRAs are subject to provisions
that prohibit withdrawal of funds by
participants for any period of time.
(a) At the time an employee becomes
eligible to participate in the SEP
(whether at the creation of the SEP or
thereafter) or up to 90 days after the effective date of this regulation, whichever is later, the administrator of the
SEP (generally the employer establishing or maintaining the SEP) shall
furnish the employee in writing with:
(1) Specific information concerning
the SEP, including:
(i) The requirements for employee
participation in the SEP,
(ii) The formula to be used to allocate employer contributions made
under the SEP to each participant’s individual retirement account or annuity
(IRA),
(iii) The name or title of the individual who is designated by the employer to provide additional information to participants concerning the
SEP, and
(iv) If the employer who establishes
or maintains the SEP selects, recommends or substantially influences
its employees to choose the IRAs into
which employer contributions under
the SEP will be made, a clear explanation of the terms of those IRAs, such
as the rate(s) of return and any restrictions on a participant’s ability to roll
over or withdraw funds from the IRAs,
including restrictions that allow rollovers or withdrawals but reduce earnings of the IRAs or impose other penalties.
(2) General information concerning
SEPs and IRAs, including a clear explanation of:
(i) What a SEP is and how it operates,
(ii) The statutory provisions prohibiting discrimination in favor of highly
compensated employees,

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Employee Benefits Security Admin., Labor
(iii) A participant’s right to receive
contributions under a SEP-and the allowable sources of contributions to a
SEP-related IRA (SEP-IRA),
(iv) The statutory limits on contributions to SEP-IRAs,
(v) The consequences of excess contributions to a SEP-IRA and how to
avoid excess contributions,
(vi) A participant’s rights with respect to contributions made under a
SEP to his or her IRA(s),
(vii) How a participant must treat
contributions to a SEP-IRA for tax
purposes,
(viii) The statutory provisions concerning withdrawal of funds from a
SEP-IRA and the consequences of a
premature withdrawal, and
(ix) A participant’s ability to roll
over or transfer funds from a SEP-IRA
to another IRA, SEP-IRA, or retirement bond, and how such a rollover or
transfer may be effected without causing adverse tax consequences.
(3) A statement to the effect that:
(i) IRAs other than the IRA(s) into
which employer contributions will be
made under the SEP may provide different rates of return and may have
different terms concerning, among
other things, transfers and withdrawals
of funds from the IRA(s),
(ii) In the event a participant is entitled to make a contribution or rollover
to an IRA, such contribution or rollover can be made to an IRA other than
the one into which employer contributions under the SEP are to be made,
and
(iii) Depending on the terms of the
IRA into which employer contributions
are made, a participant may be able to
make rollovers or transfers of funds
from that IRA to another IRA.
(4) A description of the disclosure required by the Internal Revenue Service
to be made to individuals for whose
benefit an IRA is established by the financial institution or other person who
sponsors the IRA(s) into which contributions will be made under the SEP.
(5) A statement that, in addition to
the information provided to an employee at the time he or she becomes
eligible to participate in a SEP, the administrator of the SEP must furnish
each participant:

§ 2520.104–49

(i) Within 30 days of the effective
date of any amendment to the terms of
the SEP, a copy of the amendment and
a clear written explanation of its effects, and
(ii) No later than the later of:
(A) January 31 of the year following
the year for which a contribution is
made,
(B) 30 days after a contribution is
made, or
(C) 30 days after the effective date of
this regulation
written notification of any employer
contributions made under the SEP to
that participant’s IRA(s).
(6) In the case of a SEP that provides
for integration with Social Security
(i) A statement that Social Security
taxes paid by the employer on account
of a participant will be considered as
an employer contribution under the
SEP to a participant’s SEP-IRA for
purposes of determining the amount
contributed to the SEP-IRA(s) of a participant by the employer pursuant to
the allocation formula,
(ii) A description of the effect that
integration with Social Security would
have on employer contributions under
a SEP, and
(iii) The integration formula, which
may constitute part of the allocation
formula required by paragraph (a)(1)(ii)
of this section.
(b)(1) The requirements of paragraphs
(a)(1)(i), (ii), (iii) and (a)(6)(i) of this
regulation may be met by furnishing
the SEP agreement to participants,
provided that the SEP agreement is
written in a manner reasonably calculated to be understood by the average plan participant.
(2) The requirements of paragraph
(a)(1)(iv) of this regulation may be met
through disclosure materials furnished
by the financial institution in which
the participant’s IRA is maintained,
provided the materials contain the information specified in such paragraph.
(c) No later than the later of:
(1) January 31 of the year following
the year for which a contribution is
made,
(2) 30 days after a contribution is
made, or
(3) 30 days after the effective date of
this regulation

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§ 2520.104–50

29 CFR Ch. XXV (7–1–19 Edition)

the administrator of the SEP shall notify a participant in the SEP in writing
of any employer contributions made
under the SEP to the participant’s
IRA(s).
(d) Within 30 days of the effective
date of any amendment to the terms of
the SEP, the administrator shall furnish each participant a copy of the
amendment and a clear explanation in
writing of its effect.
[46 FR 1264, Jan. 6, 1981]

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§ 2520.104–50 Short plan years, deferral of accountant’s examination and
report.
(a) Definition of ‘‘short plan year.’’ For
purposes of this section, a short plan
year is a plan year, as defined in section 3(39) of the Act, of seven or fewer
months’ duration, which occurs in the
event that:
(1) A plan is established or commences operations;
(2) A plan is merged or consolidated
with another plan or plans;
(3) A plan is terminated; or
(4) The annual date on which the plan
year begins is changed.
(b) Deferral of accountant’s report. A
plan administrator is not required to
include the report of an independent
qualified public accountant in the annual report for the first of two consecutive plan years, one of which is a short
plan year, provided that the following
conditions are satisfied:
(1) The annual report for the first of
the two consecutive plan years shall
include:
(i) Financial statements and accompanying schedules prepared in conformity with the requirements of section 103(b) of the Act and regulations
promulgated thereunder;
(ii) An explanation why one of the
two plan years is of seven or fewer
months’ duration; and
(iii) A statement that the annual report for the immediately following
plan year will include a report of an
independent qualified public accountant with respect to the financial statements and accompanying schedules for
both of the two plan years.
(2) The annual report for the second
of the two consecutive plan years shall
include:

(i) Financial statements and accompanying schedules prepared in conformity with section 103(b) of the Act
and regulations promulgated thereunder with respect to both plan years;
(ii) A report of an independent qualified public accountant with respect to
the financial statements and accompanying schedules for both plan years;
and
(iii) A statement identifying any material
differences
between
the
unaudited financial information relating to, and contained in the annual report for, the first of the two consecutive plan years and the audited financial information relating to that plan
year contained in the annual report for
the immediately following plan year.
(c) Accountant’s examination and report. The examination by the accountant which serves as the basis for the
portion of his report relating to the
first of the two consecutive plan years
may be conducted at the same time as
the examination which serves as the
basis for the portion of his report relating to the immediately following plan
year. The report of the accountant
shall be prepared in conformity with
section 103(a)(3)(A) of the Act and regulations thereunder.
[46 FR 1265, Jan. 6, 1981]

Subpart E—Reporting
Requirements
(The information collection requirements
contained in subpart E were approved by the
Office of Management and Budget under control number 1210–0016)

§ 2520.104a–1 Filing with the Secretary
of Labor.
(a) General reporting requirements.
Part 1 of title I of the Act requires that
the administrator of an employee benefit plan subject to the provisions of
part 1 file with the Secretary of Labor
certain reports and additional documents. Each report filed shall accurately and comprehensively detail the
information required. Where a form is
prescribed, the reports shall be filed on
that form. The Secretary may reject
any incomplete filing. Reports and documents shall be filed as specified in
this part.

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Employee Benefits Security Admin., Labor
(b) Exemption for certain welfare plans.
See §§ 2520.104–20, 2520.104–21, 2520.104–22,
2520.104–24, and 2520.104–25.
(c) Alternative method of compliance for
pension plans for certain selected employees. See § 2520.104–23.
[42 FR 37185, July 19, 1977]

§ 2520.104a–2 Electronic filing of annual reports.
(a) Any annual report (including any
accompanying statements or schedules) filed with the Secretary under
part 1 of title I of the Act for any plan
year (reporting year, in the case of
common or collective trusts, pooled
separate accounts, and similar nonplan entities) beginning on or after
January 1, 2009, shall be filed electronically in accordance with the instructions applicable to such report, and
such other guidance as the Secretary
may provide.
(b) Nothing in paragraph (a) of this
section is intended to alter or affect
the duties of any person to retain
records or to disclose information to
participants, beneficiaries, or the Secretary.
[71 FR 41368, July 21, 2006, as amended at 72
FR 64729, Nov. 16, 2007]

§§ 2520.104a–3—2520.104a–4

[Reserved]

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§ 2520.104a–5 Annual reporting filing
requirements.
(a) Filing obligation. Except as provided in § 2520.104a–6, the administrator
of an employee benefit plan required to
file an annual report pursuant to section 104(a)(1) of the Act shall file an annual report containing the items prescribed in § 2520.103–1 within:
(1) [Reserved]
(2) Seven months after the close of
any plan year which begins after December 31, 1975, unless extended. See
‘‘When to file’’ instructions of the appropriate Annual Return/Report Form.
(b) Where to file. The annual report
described in § 2520.103–1 shall be filed in
accordance with and at the address
provided in the instructions to the Annual Return/Report Form.
[43 FR 10152, Mar. 10, 1978; 43 FR 14010, Apr.
4, 1978; 67 FR 777, Jan. 7, 2002]

§ 2520.104a–8

§ 2520.104a–6 Annual
reporting
for
plans which are part of a group insurance arrangement.
(a) General. A trust or other entity
described in § 2520.104–43(b) that files an
annual report in accordance with the
terms of subsections (b) and (c) shall be
deemed to have filed such report in accordance with § 2520.104a–6 for purposes
of § 2520.104–43.
(b) Date of filing. The annual report
shall be filed within:
(1) Eleven and one-half months after
the close of the fiscal year of the trust
or other entity described in § 2520.104–43
which begins in 1975 or December 15,
1977, whichever is later; and
(2) Seven months after the close of
the fiscal year of the trust or other entity which begins after December 31,
1975, unless extended. See ‘‘When to
file’’ instructions of the appropriate
Annual Return/Report Form.
(c) Where to file. The annual report
prescribed in § 2520.103–2 shall be filed
in accordance with and at the address
provided in the instructions to the Annual Return/Report Form.
[43 FR 10152, Mar. 10, 1978; 43 FR 14010, Apr.
4, 1978]

§ 2520.104a–7

[Reserved]

§ 2520.104a–8 Requirement to furnish
documents to the Secretary of
Labor on request.
(a) In general. (1) Under section
104(a)(6) of the Act, the administrator
of an employee benefit plan subject to
the provisions of part 1 of title I of the
Act is required to furnish to the Secretary, upon request, any documents
relating to the employee benefit plan.
For purposes of section 104(a)(6) of the
Act, the administrator of an employee
benefit plan shall furnish to the Secretary, upon service of a written request, a copy of:
(i) The latest updated summary plan
description (including any summaries
of material modifications to the plan
or changes in the information required
to be included in the summary plan description); and
(ii) Any other document described in
section 104(b)(4) of the Act with respect
to which a participant or beneficiary
has requested, in writing, a copy from
the plan administrator and which the

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§ 2520.104b–1

29 CFR Ch. XXV (7–1–19 Edition)

administrator has failed or refused to
furnish to the participant or beneficiary.
(2) Multiple requests for document(s).
Multiple requests under this section for
the same or similar document or documents shall be considered separate requests for purposes of § 2560.502c–6(a).
(b) For purposes of this section, a
participant or beneficiary will include
any individual who is:
(1) A participant or beneficiary within the meaning of ERISA sections 3(7)
and 3(8), respectively;
(2) An alternate payee under a qualified domestic relations order (see
ERISA section 206(d)(3)(K)) or prospective alternate payee (spouses, former
spouses, children or other dependents);
(3) A qualified beneficiary under
COBRA (see ERISA section 607(3)) or
prospective
qualified
beneficiary
(spouse or dependent child);
(4) An alternate recipient under a
qualified medical child support order
(see ERISA section 609(a)(2)(C)) or a
prospective alternate recipient; or
(5) A representative of any of the
foregoing.
(c) Service of request. Requests under
this section shall be served in accordance with § 2560.502c–6(i).
(d) Furnishing documents. A document
shall be deemed to be furnished to the
Secretary on the date the document is
received by the Department of Labor at
the address specified in the request; or,
if a document is delivered by certified
mail, the date on which the document
is mailed to the Department of Labor
at the address specified in the request.
[67 FR 784, Jan. 7, 2002]

Subpart F—Disclosure
Requirements
(The information collection requirements
contained in subpart F were approved by the
Office of Management and Budget under control number 1210–0016)

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§ 2520.104b–1

Disclosure.

(a) General disclosure requirements.
The administrator of an employee benefit plan covered by Title I of the Act
must disclose certain material, including reports, statements, notices, and
other documents, to participants, bene-

ficiaries and other specified individuals. Disclosure under Title I of the
Act generally takes three forms. First,
the plan administrator must, by direct
operation of law, furnish certain material to all participants covered under
the plan and beneficiaries receiving
benefits under the plan (other than
beneficiaries under a welfare plan) at
stated times or if certain events occur.
Second, the plan administrator must
furnish certain material to individual
participants and beneficiaries upon
their request. Third, the plan administrator must make certain material
available to participants and beneficiaries for inspection at reasonable
times and places.
(b) Fulfilling the disclosure obligation.
(1) Except as provided in paragraph (e)
of this section, where certain material,
including reports, statements, notices
and other documents, is required under
Title I of the Act, or regulations issued
thereunder, to be furnished either by
direct operation of law or on individual
request, the plan administrator shall
use measures reasonably calculated to
ensure actual receipt of the material
by plan participants, beneficiaries and
other specified individuals. Material
which is required to be furnished to all
participants covered under the plan
and beneficiaries receiving benefits
under the plan (other than beneficiaries under a welfare plan) must be
sent by a method or methods of delivery likely to result in full distribution.
For example, in-hand delivery to an
employee at his or her worksite is acceptable. However, in no case is it acceptable merely to place copies of the
material in a location frequented by
participants. It is also acceptable to
furnish such material as a special insert in a periodical distributed to employees such as a union newspaper or a
company publication if the distribution
list for the periodical is comprehensive
and up-to-date and a prominent notice
on the front page of the periodical advises readers that the issue contains an
insert with important information
about rights under the plan and the
Act which should be read and retained
for future reference. If some participants and beneficiaries are not on the
mailing list, a periodical must be used
in conjunction with other methods of

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Employee Benefits Security Admin., Labor
distribution such that the methods
taken together are reasonably calculated to ensure actual receipt. Material distributed through the mail may
be sent by first, second, or third-class
mail. However, distribution by second
or third-class mail is acceptable only if
return and forwarding postage is guaranteed and address correction is requested. Any material sent by second
or third-class mail which is returned
with an address correction shall be
sent again by first-class mail or personally delivered to the participant at
his or her worksite.
(2) For purposes of section 104(b)(4) of
the Act, materials furnished upon written request shall be mailed to an address provided by the requesting participant or beneficiary or personally
delivered to the participant or beneficiary.
(3) For purposes of section 104(b)(2) of
the Act, where certain documents are
required to be made available for examination by participants and beneficiaries in the principal office of the
plan administrator and in such other
places as may be necessary to make
available all pertinent information to
all participants and beneficiaries, disclosure shall be made pursuant to the
provisions of this paragraph. Such documents must be current, readily accessible, and clearly identified, and copies
must be available in sufficient number
to accommodate the expected volume
of inquiries. Plan administrators shall
make copies of the latest annual report, and the bargaining agreement,
trust agreement, contract, or other instruments under which the plan is established or operated available at all
times in their principal offices. They
are not required to maintain these plan
documents at all times at each employer establishment or union hall or
office as described in paragraphs
(b)(3)(i), (ii), and (iii) of this section,
but the documents must be made available at any such location within ten
calendar days following the day on
which a request for disclosure at that
location is made. Plan administrators
shall make plan documents available
at the appropriate employer establishment or union meeting hall or office
within the required ten day period
when a request is made directly to the

§ 2520.104b–1

plan administrator or through a procedure establishing reasonable rules governing the making of requests for examination of plan documents. If a plan
administrator prescribes such a procedure and communicates it to plan participants and beneficiaries, a plan administrator will not be required to
comply with a request made in a manner which does not conform to the established procedure. In order to comply
with the requirements of this section, a
procedure for making requests to examine plan documents must permit requests to be made in a reasonably convenient manner both directly to the
plan administrator and at each employer establishment, or union meeting
hall or office where documents must be
made available in accordance with this
paragraph. If no such reasonable procedure is established, a good faith effort
by a participant or beneficiary to request examination of plan documents
will be deemed a request to the plan
administrator for purposes of this paragraph.
(i) In the case of a plan not maintained according to a collective bargaining agreement, including a plan
maintained by a single employer with
more than one establishment, a multiple employer plan, and a plan maintained by a controlled group of corporations (within the meaning of section 1563(a) of the Internal Revenue
Code of 1954 (the Code)), determined
without regard to section 1563(a)(4) and
(e)(3)(C) of the Code), documents shall
be made available for examination in
the principal office of the employer and
at each employer establishment in
which at least 50 participants covered
under a plan are customarily working.
‘‘Establishment’’ means a single physical location where business is conducted or where services or industrial
operations are performed. Where employees are engaged in activities which
are physically dispersed, such as agriculture, construction, transportation
and communications, the ‘‘establishment’’ shall be the place to which employees report each day. When employees do not usually work at, or report
to, a single establishment—for example, traveling salesmen, technicians,
and engineers—the establishment shall

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§ 2520.104b–1

29 CFR Ch. XXV (7–1–19 Edition)

be the location from which the employees customarily carry out their activities—for example the field office of an
engineering firm servicing at least 50
participants covered under the plan.
(ii) In the case of a plan maintained
solely by an employee organization,
the plan administrator shall take
measures to ensure that documents are
available for examination at the meeting hall or office of each union local in
which there are at least 50 participants
covered under the plan. Such measures
shall include distributing copies of the
documents to each union local in which
there are at least 50 participants covered under the plan.
(iii) In the case of a plan maintained
according to a collective bargaining
agreement, including a collectively
bargained single employer plan with
more than one establishment, a collectively bargained multiple employer
plan, and a multiemployer plan which
meets the definition of section 3(37) of
the Act, § 2510.3–37 of this chapter, and
section 414(b) of the Internal Revenue
Code of 1954 and 26 CFR 1.414(f) (40 FR
43034), documents shall be made available for examination in the principal
office of the employee organization and
at each employer establishment in
which at least 50 participants covered
under the plan are customarily working. In employment situations where
employees do not usually work at, or
report to, a single establishment, the
plan administrator shall take measures
to ensure that plan documents are
available for examination at the meeting hall or office of each union local in
which there are at least 50 participants
covered under the plan.
(c) Disclosure through electronic media.
(1) Except as otherwise provided by applicable law, rule or regulation, the administrator of an employee benefit
plan furnishing documents through
electronic media is deemed to satisfy
the requirements of paragraph (b)(1) of
this section with respect to an individual described in paragraph (c)(2) if:
(i) The administrator takes appropriate and necessary measures reasonably calculated to ensure that the system for furnishing documents—
(A) Results in actual receipt of transmitted information (e.g., using returnreceipt or notice of undelivered elec-

tronic mail features, conducting periodic reviews or surveys to confirm receipt of the transmitted information);
and
(B) Protects the confidentiality of
personal information relating to the
individual’s accounts and benefits (e.g.,
incorporating into the system measures designed to preclude unauthorized
receipt of or access to such information
by individuals other than the individual for whom the information is intended);
(ii) The electronically delivered documents are prepared and furnished in a
manner that is consistent with the
style, format and content requirements
applicable to the particular document;
(iii) Notice is provided to each participant, beneficiary or other individual,
in electronic or non-electronic form, at
the time a document is furnished electronically, that apprises the individual
of the significance of the document
when it is not otherwise reasonably
evident as transmitted (e.g., the attached document describes changes in
the benefits provided by your plan) and
of the right to request and obtain a
paper version of such document; and
(iv) Upon request, the participant,
beneficiary or other individual is furnished a paper version of the electronically furnished documents.
(2) Paragraph (c)(1) shall only apply
with respect to the following individuals:
(i) A participant who—
(A) Has the ability to effectively access documents furnished in electronic
form at any location where the participant is reasonably expected to perform
his or her duties as an employee; and
(B) With respect to whom access to
the employer’s or plan sponsor’s electronic information system is an integral part of those duties; or
(ii) A participant, beneficiary or any
other person entitled to documents
under Title I of the Act or regulations
issued thereunder (including, but not
limited to, an ‘‘alternate payee’’ within
the meaning of section 206(d)(3) of the
Act and a ‘‘qualified beneficiary’’ within the meaning of section 607(3) of the
Act) who—
(A) Except as provided in paragraph
(c)(2)(ii) (B) of this section, has affirmatively consented, in electronic or non-

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Employee Benefits Security Admin., Labor
electronic form, to receiving documents through electronic media and
has not withdrawn such consent;
(B) In the case of documents to be
furnished through the Internet or other
electronic communication network,
has affirmatively consented or confirmed consent electronically, in a
manner that reasonably demonstrates
the individual’s ability to access information in the electronic form that will
be used to provide the information that
is the subject of the consent, and has
provided an address for the receipt of
electronically furnished documents;
(C) Prior to consenting, is provided,
in electronic or non-electronic form, a
clear and conspicuous statement indicating:
(1) The types of documents to which
the consent would apply;
(2) That consent can be withdrawn at
any time without charge;
(3) The procedures for withdrawing
consent and for updating the participant’s, beneficiary’s or other individual’s address for receipt of electronically furnished documents or other information;
(4) The right to request and obtain a
paper version of an electronically furnished document, including whether
the paper version will be provided free
of charge; and
(5) Any hardware and software requirements for accessing and retaining
the documents; and
(D) Following consent, if a change in
hardware or software requirements
needed to access or retain electronic
documents creates a material risk that
the individual will be unable to access
or retain electronically furnished documents:
(1) Is provided with a statement of
the revised hardware or software requirements for access to and retention
of electronically furnished documents;
(2) Is given the right to withdraw
consent without charge and without
the imposition of any condition or consequence that was not disclosed at the
time of the initial consent; and
(3) Again consents, in accordance
with the requirements of paragraph
(c)(2)(ii)(A) or paragraph (c)(2)(ii)(B) of
this section, as applicable, to the receipt of documents through electronic
media.

§ 2520.104b–2

(d) Participant and beneficiary status
for purposes of section 101(a) and 104(b)(1)
of the Act and subpart F of this part. See
§§ 2510.3–3(d)(1), 2510.3–3(d)(2) and 2520.3–
3(d)(3) of this chapter.
(e) Limitations. This section does not
apply to disclosures required under
provisions of part 2 and part 3 of the
Act over which the Secretary of the
Treasury has interpretative and regulatory authority pursuant to Reorganization Plan No. 4 of 1978.
(Approved by the Office of Management and
Budget under control number 1210–0039)
[42 FR 37186, July 19, 1977, as amended at 62
FR 16985, Apr. 8, 1997; 62 FR 36205, July 7,
1997; 67 FR 777, Jan. 7, 2002; 67 FR 17275, Apr.
9, 2002]

§ 2520.104b–2
tion.

Summary plan descrip-

(a) Obligation to furnish. Under the
authority of sections 104(b)(1) and
104(c) of the Act, the plan administrator of an employee benefit plan subject to the provisions of part 1 of title
I shall furnish a copy of the summary
plan description and a statement of
ERISA rights as provided in § 2520.102–
3(t), to each participant covered under
the plan (as defined in § 2510.3–3(d)), and
each beneficiary receiving benefits
under a pension plan on or before the
later of:
(1) The date which is 90 days after the
employee becomes a participant, or (in
the case of a beneficiary receiving benefits under a pension plan) within 90
days after he or she first receives benefits, except as provided in § 2520.104b–
4(a), or,
(2) Within 120 days after the plan becomes subject to part 1 of title I.
(3)(i) A plan becomes subject to part
1 of title I on the first day on which an
employee is credited with an hour of
service under § 2530.200b–2 or § 2530.200b–
3. Where a plan is made prospectively
effective to take effect after a certain
date or after a condition is satisfied,
the day upon which the plan becomes
subject to part 1 of title I is the day
after such date or condition is satisfied. Where a plan is adopted with a
retroactive effective date, the 120 day
period begins on the day after the plan

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§ 2520.104b–2

29 CFR Ch. XXV (7–1–19 Edition)

is adopted. Where a plan is made retroactively effective dependent on a condition, the day on which the plan becomes subject to part 1 of title I is the
day after the day on which the condition is satisfied. Where a plan is made
retroactively effective subject to a contingency which may or may not occur
in the future, the day on which the
plan becomes subject to part 1, title I
is the day after the day on which the
contingency occurs.
(ii) Examples: Company A is negotiating the purchase of Company B. On
September 1, 1978, as part of the negotiations, Company A adopts a pension
plan covering the employees of Company B, contingent on the successful
conclusion of its negotiations to purchase Company B. The plan provides
that it shall take effect on the first day
of the calendar year in which the purchase is concluded. On February 1, 1979,
the negotiations conclude with Company A’s purchase of Company B. The
plan therefore becomes effective on
February 1, 1979, retroactive to January 1, 1979. The summary plan description must be filed and disclosed no
later than 120 days after February 1,
1979.
(b) Periods for furnishing updated summary plan description. (1) For purposes
of the requirement to furnish the updated summary plan description to
each participant and each beneficiary
receiving benefits under the plan (other
than beneficiaries receiving benefits
under a welfare plan) required by section 104(b)(1) of the Act, the administrator of an employee benefit plan
shall furnish such updated summary
plan description no later than 210 days
following the end of the plan year
which occurs five years after the last
date a change in the information required to be disclosed by section 102 or
29 CFR 2520.102–3 would have been reflected in the most recently distributed
summary plan description (or updated
summary plan description) as described
in section 102 of the Act.
(2) In the case of a plan to which no
amendments have been made between
the end of the time period covered by
the last distributed summary plan description (or updated summary plan description), described in section 102 of
the Act, and the next occurring appli-

cable date described in paragraph (b)(1)
of this section, for purposes of the requirement to furnish the updated summary plan description to each participant, and to each beneficiary receiving
benefits under the plan (other than
beneficiaries receiving benefits under a
welfare plan), required by section
104(b)(1) of the Act, the administrator
of an employee benefit plan shall furnish such updated summary plan description no later than 210 days following the end of the plan year which
occurs ten years after the last date a
change in the information required to
be disclosed by section 102 or 29 CFR
2520.102–3 would have been reflected in
the most recently distributed summary
plan description (or updated summary
plan description), as described in section 102 of the Act.
(c)–(f) [Reserved]
(g) Terminated plans. (1) If, on or before the date by which a plan is required to furnish a summary plan description or updated summary plan description to participants and pension
plan beneficiaries under this section,
the plan has terminated within the
meaning of paragraph (g)(2) of this section, the administrator of such plan is
not required to furnish to participants
covered under the plan or to beneficiaries receiving benefits under the
plan a summary plan description.
(2) For purposes of this section, a
plan shall be considered terminated if:
(i) In the case of an employee pension
benefit plan, all distributions to participants and beneficiaries have been
completed; and
(ii) In the case of an employee welfare benefit plan, no claims can be incurred which will result in a liability
of the plan to pay benefits. A claim is
incurred upon the occurrence of the
event or condition from which the
claim arises (whether or not discovered).
(h) [Reserved]
(i) Style and format of the summary
plan description. See § 2520.102–2.
(j) Contents of the summary plan description. See § 2520.102–3.
(k) Option for different summary plan
descriptions. See § 2520.102–4; § 2520.104–
26; and § 2520.104–27.

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Employee Benefits Security Admin., Labor
(l) Employee benefit plan—participant
covered under a plan. See § 2510.3–3(d).
[42 FR 37187, July 19, 1977, as amended at 45
FR 14032, Mar. 4, 1980; 48 FR 1714, Jan. 14,
1983; 61 FR 33849, 33850, July 1, 1996; 67 FR 777,
Jan. 7, 2002]

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§ 2520.104b–3 Summary of material
modifications to the plan and
changes in the information required to be included in the summary plan description.
(a) The administrator of an employee
benefit plan subject to the provisions
of part 1 of title I of the Act shall, in
accordance with § 2520.104b–1(b), furnish
a summary description of any material
modification to the plan and any
change in the information required by
section 102(b) of the Act and § 2520.102–
3 of these regulations to be included in
the summary plan description to each
participant covered under the plan and
each beneficiary receiving benefits
under the plan. Except as provided in
paragraph (d) of this section, the plan
administrator shall furnish this summary, written in a manner calculated
to be understood by the average plan
participant, not later than 210 days
after the close of the plan year in
which the modification or change was
adopted. This disclosure date is not affected by retroactive application to a
prior plan year of an amendment which
makes a material modification to the
plan; a modification does not occur before it is adopted. For example, a calendar year plan adopts a modification
in April, 1978. The modification, by its
terms, applies retroactively to the 1977
plan year. A summary description of
the material modification is furnished
on or before July 29, 1979. A plan which
adopts an amendment which makes a
material modification to the plan
which takes effect on a date in the future must disclose a summary of that
modification within 210 days after the
close of the plan year in which the
modification or change is adopted.
Under the authority of sections
104(a)(3) and 110 of the Act, a summary
description of a material modification
or change is not required to be disclosed if it is rescinded or otherwise
does not take effect. For example, a
calendar year plan adopts a modification in June, 1978. The modification, by

§ 2520.104b–3

its terms, becomes effective beginning
in plan year 1979. Before the beginning
of plan year 1979, the prospective modification is withdrawn. No summary of
the material modification is required
to be disclosed.
(b) The summary of material modifications to the plan or changes in information required to be included in
the summary plan description need not
be furnished separately if the changes
or modifications are described in a
timely summary plan description. For
example, a calendar year plan adopts a
material modification on June 3, 1976.
The modification is incorporated in a
summary plan description furnished on
July 15, 1977. No separate summary of
the material modification is furnished.
The plan adopts another material
modification September 15, 1977. A separate summary of the modification is
furnished on or before July 29, 1978.
(c) The copy of the summary plan description furnished in accordance with
§§ 2520.104b–2(a)(1)(i)
and
2520.104b–4
shall be acompanied by all summaries
of material modifications or changes in
information required to be included in
the summary plan description which
have not been incorporated into that
summary plan description.
(d) Special rule for group health plans—
(1) General. Except as provided in paragraph (d)(2) of this section, the administrator of a group health plan, as defined in section 733(a)(1) of the Act,
shall furnish to each participant covered under the plan a summary, written in a manner calculated to be understood by the average plan participant,
of any modification to the plan or
change in the information required to
be included in the summary plan description, within the meaning of paragraph (a) of this section, that is a material reduction in covered services or
benefits not later than 60 days after
the date of adoption of the modification or change.
(2) 90-day alternative rule. The administrator of a group health plan shall
not be required to furnish a summary
of any material reduction in covered
services or benefits within the 60-day
period described in paragraph (d)(1) of
this section to any participant covered
under the plan who would reasonably

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§ 2520.104b–4

29 CFR Ch. XXV (7–1–19 Edition)

be expected to be furnished such summary in connection with a system of
communication maintained by the plan
sponsor or administrator, with respect
to which plan participants are provided
information concerning their plan, including modifications and changes
thereto, at regular intervals of not
more than 90 days and such communication otherwise meets the disclosure requirements of 29 CFR 2520.104b–
1.
(3) ‘‘Material reduction’’. (i) For purposes of this paragraph (d), a ‘‘material
reduction in covered services or benefits’’ means any modification to the
plan or change in the information required to be included in the summary
plan description that, independently or
in conjunction with other contemporaneous modifications or changes, would
be considered by the average plan participant to be an important reduction
in covered services or benefits under
the plan.
(ii) A ‘‘reduction in covered services
or benefits’’ generally would include
any plan modification or change that:
eliminates benefits payable under the
plan; reduces benefits payable under
the plan, including a reduction that occurs as a result of a change in formulas, methodologies or schedules that
serve as the basis for making benefit
determinations; increases premiums,
deductibles, coinsurance, copayments,
or other amounts to be paid by a participant or beneficiary; reduces the
service area covered by a health maintenance organization; establishes new
conditions
or
requirements
(e.g.,
preauthorization requirements) to obtaining services or benefits under the
plan.
(e) Applicability date. Paragraph (d) of
this section is applicable as of the first
day of the first plan year beginning
after June 30, 1997.
(f)–(g) [Reserved]

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(Approved by the Office of Management and
Budget under control number 1210–0039)
[42 FR 37188, July 19, 1977, as amended at 62
FR 16985, Apr. 8, 1997; 62 FR 36205, July 7,
1997; 65 FR 70243, Nov. 21, 2000; 66 FR 34994,
July 2, 2001; 67 FR 777, Jan. 7, 2002]

§ 2520.104b–4 Alternative methods of
compliance for furnishing the summary plan description and summaries of material modifications of
a pension plan to a retired participant, a separated participant with
vested benefits, and a beneficiary
receiving benefits.
Under the authority of section 110 of
the Act, in the case of an employee
pension benefit plan—
(a) Summary plan descriptions. A plan
administrator will be deemed to satisfy
the requirements of section 104(b)(1) of
the Act and § 2520.104b–2(a) to furnish a
copy of the initial summary plan description to a retired participant, a
beneficiary receiving benefits, or a separated participant with vested benefits
(‘‘vested separated participant’’) if, no
earlier than the date stated in paragraph (a)(4) of this section,
(1) In the case of a retired participant
or a beneficiary receiving benefits, a
document is furnished which—
(i) Meets the requirements of
§§ 2520.102–2 and 2520.102–3 except paragraphs (b)(3), (b)(4), (j), (k), (l), (n), (o)
and (p);
(ii) Contains a statement that the
benefit payment presently being received by the retired participant or
beneficiary receiving benefits will continue in the same amount and for the
period provided in the mode of settlement selected at retirement, and will
not be changed except as described in
paragraph (a)(1)(iii) of this section; and
(iii) Contains a statement describing
any plan provision under which the
present benefit payment may be reduced, changed, terminated, forfeited
or suspended;
(2) In the case of a vested separated
participant, a document is furnished
which—
(i) Meets the requirements of
§§ 2520.102–2 and 2520.102–3 except paragraphs (b)(3), (b)(4), (j), (l), (n), (o), (p)
and (r);
(ii)(A) If at or after separation, a separated vested participant was furnished
a statement of the dollar amount of
the vested benefit or the method of
computation of the benefit, includes a
statement that the dollar amount of
the vested benefit was previously furnished and that a copy of the previously furnished statement of the dollar amount of such vested benefit or

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kpayne on VMOFRWIN702 with $$_JOB

Employee Benefits Security Admin., Labor
method of computation of the benefit
may be obtained from the plan upon request;
(B) If the vested separated participant was not furnished a statement of
the dollar amount of the vested benefit
or the method of computation of the
benefit, the plan furnishes either a
statement of the dollar amount of the
vested benefit, or a statement of the
formula used to determine the dollar
amount of the vested benefit;
(iii) Includes a statement of the form
in which the benefits will be paid and
duration of the payment period or a description of the optional modes of payment available under the plan; and
(iv) Includes a statement describing
any plan provision under which a benefit may be reduced, changed, terminated, forfeited or suspended; or
(3)(i) Such retired participant, vested
separated participant, or beneficiary
receiving benefits was furnished with a
copy of a document which—
(A) Satisfies the requirements of section 102(a)(1) of the Act and § 2520.102–2
(relating to the style and format of the
summary
plan
description)
and
§ 2520.102–3 (relating to the content of
the summary plan description);
(B) Describes the rights and obligations under the plan of such retired
participant, vested separated participant, or beneficiary receiving benefits
as of the date stated in subparagraph
(4);
(ii) In the case of a person who retired, became a beneficiary, or separated with vested benefits before November 16, 1977, a document will be
deemed to comply with the requirements of paragraph (a)(2)(i) of this section if the document omitted only information described in one or more of
the provisions of § 2520.102–3 listed
below, provided that a supplement containing such information, which meets
the requirements of § 2520.102–2, is furnished to the retired participant, vested separated participant, or beneficiary
receiving benefits by November 16, 1977.
(A) Employer identification number
(EIN), as required by § 2520.102–3(c);
(B) Type of administration, as required by § 2520.102–3(e);
(C) Name of agent for service of legal
process, as required by § 2520.102–3(g);

§ 2520.104b–4

(D) Names and addresses of trustees,
as required by § 2520.102–3(h);
(E) Statement regarding plan termination insurance as required by
§ 2520.102–3(m);
(F) Date of the end of the fiscal year,
as required by § 2520.102–3(r); or
(G) Statement of ERISA rights, as required by § 2520.102–3(t).
(4) For purposes of this paragraph the
dates are: For a vested separated participant, the date of separation; for a
beneficiary, the date on which payment
of benefits commences; and for a retired participant, the date of retirement.
(b) Updated summary plan descriptions.
A copy of an updated summary plan description need not be furnished as prescribed in section 104(b)(1) of the Act
and § 2520.104b–2(b) to a retired participant, vested separated participant, or a
beneficiary receiving benefits if—
(1)(i) On or after the date stated in
paragraph (b)(1)(ii) of this section, the
retired participant, vested separated
participant, or beneficiary is furnished
with a copy of the most recent summary plan description and a copy of
any summaries of material modifications not incorporated in such summary plan description;
(ii) For purposes of paragraph (b)(1)(i)
of this section the dates are: for a retired participant, the date of retirement; for a vested separated participant, the date of separation; and for a
beneficiary, the date on which payment
of benefits commences;
(2) No latter than the date on which
an updated summary plan description
is furnished to participants and beneficiaries as prescribed by section
104(b)(1) of the Act and § 2520.104b–2(b),
a retired participant, vested separated
participant, or beneficiary receiving
benefits is furnished a notice containing the following:
(i) A statement that the benefit
rights of such retired participant, vested separated participant, or beneficiary
receiving benefits are set forth in the
earlier summary plan description and
any subsequently furnished summaries
of material modifications (see paragraph (c)), and
(ii) A statement that such retired
participant, vested separated participant, or beneficiary receiving benefits

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§ 2520.104b–10

29 CFR Ch. XXV (7–1–19 Edition)

may obtain a copy of the earlier summary plan description and summaries
of material modifications described in
paragraph (b)(2)(i) of this section, and
the updated summary plan description,
without charge, upon request, from the
plan administrator; and
(3) The plan administrator furnishes
a copy of the documents described in
paragraph (b)(2)(ii) of this section to
such retired participant, vested separated participant or beneficiary, without charge, upon request.
(c) Summary of material modifications
or changes. A summary description of a
material modification to the plan or a
change in the information required to
be included in the summary plan description need not be furnished to a retired participant, a vested separated
participant or a beneficiary receiving
benefits under the plan, within the
time prescribed in section 104(b)(1) of
the Act and § 2520.104b–3 for furnishing
summary descriptions of such modifications and changes, if the material
modification or change in no way affects such retired participant’s, vested
separated
participant’s,
or
beneficiary’s rights under the plan. For example, a change in trustees is information which such a person may need to
know in order to make inquiries about
his or her rights expeditiously, and
hence must be furnished. On the other
hand, a modification in benefits under
the plan to which such retired participant, vested separated participant, or
beneficiary had not at any time been
entitled (and would not in the future be
entitled) would not affect his or her
rights and hence need not be furnished.
If such retired participant, vested separated participant, or beneficiary requests a copy of a summary description
of a material modification or a change
which was not furnished, the plan administrator shall furnish the copy,
without charge.

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[45 FR 14032, Mar. 4, 1980, as amended at 61
FR 33850, July 1, 1996]

§ 2520.104b–10 Summary Annual Report.
(a) Obligation to furnish. Except as
otherwise provided in paragraph (g) of
this section, the administrator of any
employee benefit plan shall furnish annually to each participant of such plan

and to each beneficiary receiving benefits under such plan (other than beneficiaries under a welfare plan) a summary annual report conforming to the
requirements of this section. Such furnishing of the summary annual report
shall take place in accordance with the
requirements of § 2520.104b–1 of this
part.
(b) [Reserved]
(c) When to furnish. Except as otherwise provided in this paragraph (c), the
summary annual report required by
paragraph (a) of this section shall be
furnished within nine months after the
close of the plan year.
(1) In the case of a welfare plan described in § 2520.104–43 of this part, such
furnishing shall take place within 9
months after the close of the fiscal
year of the trust or other entity which
files
the
annual
report
under
§ 2520.104a–6 of this part.
(2) When an extension of time in
which to file an annual report has been
granted by the Internal Revenue Service, such furnishing shall take place
within 2 months after the close of the
period for which the extension was
granted.
(d) Contents, style and format. Except
as otherwise provided in this paragraph
(d), the summary annual report furnished to participants and beneficiaries
of an employee pension benefit plan
pursuant to this section shall consist
of a completed copy of the form prescribed in paragraph (d)(3) of this section, and the summary annual report
furnished to participants and beneficiaries of an employee welfare benefit
plan pursuant to this section shall consist of a completed copy of the form
prescribed in paragraph (d)(4) of this
section. The information used to complete the form shall be based upon information contained in the most recent
annual report of the plan which is required to be filed in accordance with
section 104(a)(1) of the Act.
(1) Any portion of the forms set forth
in this paragraph (d) which is not applicable to the plan to which the summary annual report relates, or which
would require information which is not
required to be reported on the annual
report of that plan, may be omitted.
(2) Where the plan administrator determines that additional explanation of

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Employee Benefits Security Admin., Labor
any information furnished pursuant to
this paragraph (d) is necessary to fairly
summarize the annual report, such explanation shall be set forth following
the completed form required by this
paragraph (d) and shall be headed,
‘‘Additional Explanation.’’
(3) Form for Summary Annual Report
Relating to Pension Plans.
SUMMARY ANNUAL REPORT FOR (NAME OF
PLAN)
This is a summary of the annual report for
(name of plan and EIN) for (period covered
by this report). The annual report has been
filed with the Pension and Welfare Benefits
Administration, as required under the Employee Retirement Income Security Act of
1974 (ERISA).
Basic Financial Statement
Benefits under the plan are provided by (indicate funding arrangements). Plan expenses
were ($
). These expenses included ($
)
in administrative expenses and ($
) in benefits paid to participants and beneficiaries,
and ($
) in other expenses. A total of (
)
persons were participants in or beneficiaries
of the plan at the end of the plan year, although not all of these persons had yet
earned the right to receive benefits.
[If the plan is funded other than solely by allocated insurance contracts:]
The value of plan assets, after subtracting
liabilities of the plan, was ($
) as of (the
end of the plan year), compared to ($
) as
of (the beginning of the plan year). During
the plan year the plan experienced an (increase) (decrease) in its net assets of ($
)
This (increase) (decrease) includes unrealized
appreciation or depreciation in the value of
plan assets; that is, the difference between
the value of the plan’s assets at the end of
the year and the value of the assets at the
beginning of the year or the cost of assets
acquired during the year. The plan had total
income of ($
), including employer contributions of ($
), employee contributions
of ($
), (gains) (losses) of ($
), from the
sale of assets, and earnings from investments
of ($
).
[If any funds are used to purchase allocated
insurance contracts:]

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The plan has (a) contract(s) with (name
of insurance carrier(s)) which allocate(s)
funds toward (state whether individual
policies, group deferred annuities or other).
The total premiums paid for the plan year
ending (date) were ($
).
Minimum Funding Standards
[If the plan is a defined benefit plan:]

§ 2520.104b–10

An actuary’s statement shows that
(enough money was contributed to the plan
to keep it funded in accordance with the
minimum funding standards of ERISA)
(not enough money was contributed to the
plan to keep it funded in accordance with
the minimum funding standards of ERISA.
The amount of the deficit was $
).
[If the plan is a defined contribution plan
covered by funding requirements:]
(Enough money was contributed to the
plan to keep it funded in accordance with
the minimum funding standards of ERISA)
(Not enough money was contributed to the
plan to keep it funded in accordance with
the minimum funding standards of ERISA.
The amount of the deficit was $
).
Your Rights to Additional Information
You have the right to receive a copy of the
full annual report, or any part thereof, on request. The items listed below are included in
that report: [Note—list only those items
which are actually included in the latest annual report]
1. an accountant’s report;
2. financial information and information
on payments to service providers;
3. assets held for investment;
4. fiduciary information, including non-exempt transactions between the plan and parties-in-interest (that is, persons who have
certain relationships with the plan);
5. loans or other obligations in default or
classified as uncollectible;
6. leases in default or classified as
uncollectible;
7. transactions in excess of 5 percent of the
plan assets;
8. insurance information including sales
commissions paid by insurance carriers;
9. information regarding any common or
collective trusts, pooled separate accounts,
master trusts or 103–12 investment entities
in which the plan participates, and
10. actuarial information regarding the
funding of the plan.
To obtain a copy of the full annual report, or
any part thereof, write or call the office of
(name), who is (state title: e.g., the plan administrator), (business address and telephone
number). The charge to cover copying costs
will be ($
) for the full annual report, or
($
) per page for any part thereof.
You also have the right to receive from the
plan administrator, on request and at no
charge, a statement of the assets and liabilities of the plan and accompanying notes, or
a statement of income and expenses of the
plan and accompanying notes, or both. If you
request a copy of the full annual report from
the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to
cover copying costs given above does not

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§ 2520.104b–10

29 CFR Ch. XXV (7–1–19 Edition)

include a charge for the copying of these
portions of the report because these portions
are furnished without charge. You also have
the legally protected right to examine the
annual report at the main office of the
plan (
address
), (at
any other location where the report is available for examination), and at the U.S.
Department of Labor in Washington, D.C., or
to obtain a copy from the U.S. Department
of Labor upon payment of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room
N–1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C.
20210.

(4) Form for Summary Annual Report
Relating to Welfare Plans.
SUMMARY ANNUAL REPORT FOR (NAME OF
PLAN)
This is a summary of the annual report of
the (name of plan, EIN and type of welfare
plan) for (period covered by this report). The
annual report has been filed with the Employee Benefits Security Administration, as
required under the Employee Retirement Income Security Act of 1974 (ERISA).
[If any benefits under the plan are provided
on an uninsured basis:]
(Name of sponsor) has committed itself to
pay (all, certain) (state type of) claims incurred under the terms of the plan.
[If any of the funds are used to purchase insurance contracts:]
Insurance Information
The plan has (a) contract(s) with (name of
insurance carrier(s)) to pay (all, certain)
(state type of) claims incurred under the
terms of the plan. The total premiums paid
for the plan year ending (date) were
($lllll).
[If applicable add:]
Because (it is a) (they are) so called ‘‘experience-rated’’ contract(s), the premium costs
are affected by, among other things, the
number and size of claims. Of the total insurance premiums paid for the plan year ending
(date), the premiums paid under such ‘‘experience-rated’’ contract(s) were ($
) and the
total of all benefit claims paid under the(se)
experience-rated contract(s) during the plan
year was ($
).
[If any funds of the plan are held in trust or
in a separately maintained fund:]

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Basic financial statement
The value of plan assets, after subtracting
liabilities of the plan, was ($
) as of (the
end of plan year), compared to ($
) as of

(the beginning of the plan year). During the
plan year the plan experienced an (increase)
(decrease) in its net assets of
($
). This (increase) (decrease) includes
unrealized appreciation and depreciation in
the value of plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of
the assets at the beginning of the year or the
cost of assets acquired during the year. During the plan year, the plan had total income
of ($
) including employer contributions
of ($
), employee contributions of ($
),
realized (gains) (losses) of ($
) from the
sale of assets, and earnings from investments
of ($
). Plan expenses were ($
). These
expenses included ($
) in administrative
expenses, ($
) in benefits paid to participants and beneficiaries, and ($
) in other
expenses.
Your Rights to Additional Information
You have the right to receive a copy of the
full annual report, or any part thereof, on request. The items listed below are included in
that report: [Note—list only those items
which are actually included in the latest annual report].
1. an accountant’s report;
2. financial information and information
on payments to service providers;
3. assets held for investment;
4. fiduciary information, including non-exempt transactions between the plan and parties-in-interest (that is, persons who have
certain relationships with the plan);
5. loans or other obligations in default or
classified as uncollectible;
6. leases in default or classified as
uncollectible;
7. transactions in excess of 5 percent of the
plan assets;
8. insurance information including sales
commissions paid by insurance carriers; and
9. information regarding any common or
collective trusts, pooled separate accounts,
master trusts or 103–12 investment entities
in which the plan participates.
To obtain a copy of the full annual report, or
any part thereof, write or call the office of
(name), who is (state title: e.g., the plan
administrator), (business address and
telephone number). The charge to cover
copying costs will be ($
) for the
full annual report, or ($
)
per page for any part thereof.
You also have the right to receive from the
plan administrator, on request and at no
charge, a statement of the assets and
liabilities of the plan and accompanying
notes, or a statement of income and expenses
of the plan and accompanying notes, or both.
If you request a copy of the full annual report from the plan administrator, these two
statements and accompanying notes will be

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Employee Benefits Security Admin., Labor
included as part of that report. The charge
to cover copying costs given above does not
include a charge for the copying of these portions of the report because these portions are
furnished without charge.
You also have the legally protected right to
examine the annual report at the main office
of the plan (address), (at any other location
where the report is available for examination), and at the U.S. Department of Labor
in Washington, D.C. or to obtain a copy from
the U.S. Department of Labor upon payment
of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room N–1513, Employee Benefits
Security Administration, U.S. Department
of Labor, 200 Constitution Avenue, N.W.,
Washington, D.C. 20210.

(e) Foreign languages. In the case of
either—
(1) A plan which covers fewer than
100 participants at the beginning of a
plan year in which 25 percent or more
of all plan participants are literate
only in the same non-English language;
or
(2) A plan which covers 100 or more
participants in which 500 or more participants or 10 percent or more of all
plan participants, whichever is less, are
literate only in the same non-English
language—
The plan administrator for such plan
shall provide these participants with
an English-language summary annual
report which prominently displays a
notice, in the non-English language
common to these participants, offering
them assistance. The assistance provided need not involve written materials, but shall be given in the nonEnglish language common to these par-

§ 2520.104b–10

ticipants. The notice offering assistance shall clearly set forth any procedures participants must follow to obtain such assistance.
(f) Furnishing of additional documents
to participants and beneficiaries. A plan
administrator shall promptly comply
with any request by a participant or
beneficiary for additional documents
made in accordance with the procedures or rights described in paragraph
(d) of this section.
(g) Exemptions. Notwithstanding the
provisions of this section, a summary
annual report is not required to be furnished with respect to the following:
(1) A totally unfunded welfare plan
described in 29 CFR 2520.104–44(b)(1)(i);
(2) A welfare plan which meets the
requirements of 29 CFR 2520.104–20(b);
(3) An apprenticeship or other training plan which meets the requirements
of 29 CFR 2520.104–22;
(4) A pension plan for selected employees which meets the requirements
of 29 CFR 2520.104–23;
(5) A welfare plan for selected employees which meets the requirements
of 29 CFR 2520.104–24;
(6) A day care center referred to in 29
CFR 2520.104–25;
(7) A dues financed welfare plan
which meets the requirements of 29
CFR 2520.104–26;
(8) A dues financed pension plan
which meets the requirements of 29
CFR 2520.104–27; and
(9) A plan to which title IV of the Act
applies.

APPENDIX TO § 2520.104B–10—THE SUMMARY ANNUAL REPORT (SAR) UNDER ERISA: A CROSSREFERENCE TO THE ANNUAL REPORT
SAR item

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A. PENSION PLAN:
1. Funding arrangement ......
2. Total plan expenses ........
3. Administrative expenses ..
4. Benefits paid ....................
5. Other expenses ...............
6. Total participants .............
7. Value of plan assets (net):
a. End of plan year.
b. Beginning of plan
year.
8. Change in net assets .......
9. Total income ....................

Form 5500 large plan filer
line items

Form 5500 small plan filer
line items

Form 5500–SF filer line
items

Form 5500–9a ....................
Sch. H–2j ............................
Sch. H–2i(5) .......................
Sch. H–2e(4) ......................
Sch. H–Subtract the sum of
2e(4) & 2i(5) from 2j.
Form 5500–6f .....................
Sch. H–1l [Col. (b)] .............

Same ..................................
Sch. I–2j .............................
Sch. I–2h ............................
Sch. I–2e ............................
Sch. I–2i .............................

Not applicable.
Line 8h.
Line 8f.
Line 8d.
Line 8g.

Same ..................................
Sch. I–1c [Col. (b)] .............

Line 5b.
Line 7c [Col. (b)].

Sch. H–1l [Col. (a)] .............

Sch. I–1c [Col. (a)] .............

Line 7c [Col. (a)].

Sch. H–Subtract 1l [Col.
(a)] from 1l [Col. (b)].
Sch. H–2d ...........................

Sch. I–Subtract 1c [Col. (a)
from Col. (b)].
Sch. I–2d ............................

Line 7c–Subtract Col. (a)
from Col. (b).
Line 8c.

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§ 2520.104b–30

29 CFR Ch. XXV (7–1–19 Edition)

APPENDIX TO § 2520.104B–10—THE SUMMARY ANNUAL REPORT (SAR) UNDER ERISA: A CROSSREFERENCE TO THE ANNUAL REPORT—Continued
SAR item

Form 5500 large plan filer
line items

Form 5500 small plan filer
line items

a.

Sch. H–2a(1)(A) & 2a(2) if
applicable.
Sch. H–2a(1)(B) & 2a(2) if
applicable.
Sch. H–2b(4)(C) .................

Sch. I–2a(1) & 2b if applicable.
Sch. I–2a(2) & 2b if applicable.
Not applicable .....................

Line 8a(1) if applicable.

Sch. H–Subtract the sum of
2a(3), 2b(4)(C) and 2c
from 2d.
Total of all Schs. A–6b .......

Sch. I–2c ............................

Line 8b.

Total of all Schs. A–6b .......

Not applicable.

Sch. SB–39 ........................

Same ..................................

Same.

Employer contributions.
b. Employee contributions.
c. Gains (losses)
from sale of assets.
d. Earnings from investments.
10. Total insurance premiums.
11. Unpaid minimum required contribution (S–E
plans) or Funding deficiency (ME plans):.
a. S–E Defined
benefit plans.
b. ME Defined benefit plans.
c. Defined contribution plans.
B. WELFARE PLAN
1. Name of insurance carrier
2. Total (experience rated
and
non-experienced
rated) insurance premiums.
3. Experience rated premiums.
4. Experience rated claims ..
5. Value of plan assets (net):
a. End of plan year.
b. Beginning of plan
year.
6. Change in net assets .......
7. Total income ....................
a. Employer contributions.
b. Employee contributions.
c. Gains (losses)
from sale of assets.
d. Earnings from investments.
8. Total plan expenses ........
9. Administrative expenses ..
10. Benefits paid ..................
11. Other expenses .............

Form 5500–SF filer line
items

Line 8a(2) & 8a(3) if applicable.
Not applicable.

Sch. MB–10 ........................

Same ..................................

Not applicable.

Sch. R–6c, if more than
zero.

Same ..................................

Line 12d.

All Schs. A–1(a) .................
All Schs. A–Sum of 9a(1)
and 10a.

Same ..................................
Same ..................................

Not applicable.
Not applicable.

All Schs. A–9a(1) ...............

Same ..................................

Not applicable.

All Schs. A–9b(4) ...............
Sch. H–1l [Col. (b)] .............

Same ..................................
Sch. I–1c [Col. (b)] .............

Not applicable.
Line 7c [Col. (b)].

Sch. H–1l [Col. (a)] .............

Sch. I–1c [Col. (a)] .............

Line 7c [Col. (a)].

Sch. H–Subtract 1l [Col.
(a)] from 1l [Col. (b)].
Sch. H–2d ...........................
Sch. H–2a(1)(A) & 2a(2) if
applicable.
Sch. H–2a(1)(B) & 2a(2) if
applicable.
Sch. H–2b(4)(C) .................

Sch. I–Subtract 1c [Col. (a)]
from 1c [Col. (b)].
Sch. I–2d ............................
Sch. I–2a(1) & 2b if applicable.
Sch. I–2a(2) & 2b if applicable.
Not applicable .....................

Line 7c–Subtract [Col. (a)]
from 7c [Col. (b)].
Line 8c
Line 8a(1) if applicable.

Sch. H–Subtract the sum of
2a(3), 2b(4)(C) and 2c
from 2d.
Sch. H–2j ............................
Sch. H–2i(5) .......................
Sch. H–2e(4) ......................
Sch. H–Subtract the sum of
2e(4) & 2i(5) from 2j.

Sch. I–2c ............................

Line 8b.

Sch.
Sch.
Sch.
Sch.

Line
Line
Line
Line

I–2j .............................
I–2h ............................
I–2e ............................
I–2i .............................

Line 8a(2) if applicable.
Not applicable.

8h.
8f.
8d.
8g.

[44 FR 19403, Apr. 3, 1979, as amended at 44 FR 31640, June 1, 1979; 47 FR 31873, July 23, 1982;
54 FR 8629, Mar. 1, 1989; 65 FR 21085, Apr. 19, 2000; 65 FR 35568, June 5, 2000; 68 FR 16400, Apr.
3, 2003; 72 FR 64729, Nov. 16, 2007; 80 FR 5663, Feb. 2, 2015]

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§ 2520.104b–30

Charges for documents.

(a) Application. The plan administrator of an employee benefit plan may
impose a reasonable charge to cover
the cost of furnishing to participants
and beneficiaries upon their written request as required under section

104(b)(4) of the Act, copies of the following information, statements or documents: The latest updated summary
plan description, and the latest annual
report, any terminal report, the bargaining agreement, trust agreement,
contract, or other instruments under

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Employee Benefits Security Admin., Labor
which the plan is established or operated. Except where explicitly permitted under the Act, no charge may
be assessed for furnishing information,
statements or documents as required
by other provisions of the Act, which
include, in part 1 of title I, sections
104(b)(1), (2), (3) and (c) and 105(a) and
(c).
(b) Reasonableness. The charge assessed by the plan administrator to
cover the costs of furnishing documents is reasonable if it is equal to the
actual cost per page to the plan for the
least expensive means of acceptable reproduction, but in no event may such
charge exceed 25 cents per page. For example, if a plan printed a large number
of pamphlets at $1.00 per 50-page pamphlet, the actual cost of reproduction
for the entire pamphlet ($1.00) would be
equal to 2 cents per page. If only one
page of such a pamphlet were requested, the actual cost of providing
that page from the printed copy would
be $1.00, since the copy would no longer
be complete. In such a case, the least
expensive means of acceptable reproduction would be individually reproducing the page requested at a charge
of no more than 25 cents. On the other
hand, if six pages of the same plan document were requested and each page
cost 20 cents to be reproduced, the actual cost of providing those pages
would be $1.20. In such a case, if a
printed copy is available, the least expensive means of acceptable reproduction would be to use pages from the
printed copy at a charge of no more
than $1.00. No other charge for furnishing documents, such as handling or
postage charges, will be deemed reasonable. The plan administrator shall
provide information to a plan participant or beneficiary, upon request,
about the charge that would be made
to provide a copy of material described
in this paragraph.

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[41 FR 16964, Apr. 23, 1976, as amended at 41
FR 37575, Sept. 7, 1976; 75 FR 9342, Mar. 2,
2010]

§ 2520.107–1

Subpart G—Recordkeeping
Requirements
§ 2520.107–1 Use of electronic media
for maintenance and retention of
records.
(a) Scope and purpose. Sections 107
and 209 of the Employee Retirement Income Security Act of 1974, as amended
(ERISA), contain certain requirements
relating to the maintenance of records
for reporting and disclosure purposes
and for determining the pension benefits to which participants and beneficiaries are or may become entitled.
This section provides standards applicable to both pension and welfare plans
concerning the use of electronic media
for the maintenance and retention of
records required to be kept under sections 107 and 209 of ERISA.
(b) General requirements. The record
maintenance and retention requirements of sections 107 and 209 of ERISA
are satisfied when using electronic
media if:
(1) The electronic recordkeeping system has reasonable controls to ensure
the integrity, accuracy, authenticity
and reliability of the records kept in
electronic form;
(2) The electronic records are maintained in reasonable order and in a safe
and accessible place, and in such manner as they may be readily inspected or
examined (for example, the recordkeeping system should be capable of indexing, retaining, preserving, retrieving and reproducing the electronic
records);
(3) The electronic records are readily
convertible into legible and readable
paper copy as may be needed to satisfy
reporting and disclosure requirements
or any other obligation under Title I of
ERISA;
(4) The electronic recordkeeping system is not subject, in whole or in part,
to any agreement or restriction that
would, directly or indirectly, compromise or limit a person’s ability to
comply with any reporting and disclosure requirement or any other obligation under Title I of ERISA; and
(5) Adequate records management
practices are established and implemented (for example, following procedures for labeling of electronically

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§ 2520.107–1

29 CFR Ch. XXV (7–1–19 Edition)

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maintained or retained records, providing a secure storage environment,
creating back-up electronic copies and
selecting an off-site storage location,
observing a quality assurance program
evidenced by regular evaluations of the
electronic recordkeeping system including periodic checks of electronically maintained or retained records,
and retaining paper copies of records
that cannot be clearly, accurately or
completely transferred to an electronic
recordkeeping system).
(c) Legibility and readability. All electronic records must exhibit a high degree of legibility and readability when
displayed on a video display terminal
or other method of electronic transmission and when reproduced in paper
form. The term ‘‘legibility’’ means the

observer must be able to identify all
letters and numerals positively and
quickly to the exclusion of all other
letters or numerals. The term ‘‘readability’’ means that the observer must
be able to recognize a group of letters
or numerals as words or complete numbers.
(d) Disposal of original paper records.
Original paper records may be disposed
of any time after they are transferred
to an electronic recordkeeping system
that complies with the requirements of
this section, except such original
records may not be discarded if the
electronic record would not constitute
a duplicate or substitute record under
the terms of the plan and applicable
federal or state law.
[67 FR 17275, Apr. 9, 2002]

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