The American Retirement Association (ARA) on March 30 requested relief from the Department of Labor’s Employee Benefits Security Administration (EBSA) on certain ERISA notice and disclosure requirements. The ARA made the request in a March 30 letter to the Honorable Preston Rutledge, DOL Assistant Secretary of Labor for EBSA.
“We believe that the ongoing and likely future impacts of the current COVID-19 (Coronavirus) pandemic will impede efforts by plan sponsors and service providers to comply with the Employee Retirement Income Security Act of 1974 (ERISA). For this reason, the ARA believes that reasonable relief relating to certain ERISA notice and disclosure requirements is appropriate,” says the ARA in the letter.
The ARA notes that Section 3607 of the CARES Act of 2020 amends Section 518 of ERISA to allow for an extension for “a public health emergency declared by the Secretary of Health and Human Services pursuant to Section 319 of the Public Health Service Act.” This change, the ARA writes, “provides the Department of Labor with significant latitude to extend filing deadlines and other required ERISA items in response to the Coronavirus pandemic.”
“ARA is particularly interested in reasonable relief from notices required to be provided to plan participants under Title I of ERISA,” the letter tells Rutledge.
The letter also expresses the ARA’s appreciation for EBSA’s consideration of issues related to retirement plan administration under current conditions, and that it “looks forward to working with EBSA to provide relief to plan sponsors and third-party administrators as well as plan participants.”
The ARA requested relief regarding the following ERISA Participant Disclosures and Notices.
|
Disclosure Item |
Timing/Due Date |
|
Automatic Enrollment-Qualified Automatic Contribution Arrangement |
30-90 days prior to start of plan year using QACA design |
|
Automatic Enrollment Notice |
Reasonable period before first contribution and annually, thereafter |
|
Summary Annual Report |
Last day of 9th month beginning after end of plan year (or as extended) |
|
Summary Plan Description |
Within 90 days of becoming a participant. 120 days after plan is subject to Title 1. Updated every 5 years if plan is amended or every 10 years if no amendments |
|
Summary of Material Modifications |
210th day after end of plan year when modification was adopted |
|
404(c) disclosures |
With the SPD, if it is not a part of the SPD |
|
Investment Advice Disclosures |
Before providing investment advice for the first time to the participant and annually thereafter. Also available upon request. Must resend if there is a material change |
|
QDIA Notice |
Within reasonable period before initial default investment will occur and at least 30 days before beginning of plan year |
|
Mapping Notice |
30 - 60 days before the effective date of the change |
|
Participant Fee and Expense Disclosure |
Within 12-14 months of the last disclosure |
|
Benefit Statements
|
At least quarterly for participant directed plans and annually for other individual account plans, within 45 days following the close of the reporting period |
|
Annual Report |
Within 30 days of request |
|
Investment election form
|
Prior to payroll period for which the investment election is to be effective |
|
Loans: Promissory note |
Within a reasonable period of loan application |
|
Loans: Truth-in-lending disclosure |
Within a reasonable period of time of request |
|
QDRO Procedures
|
Upon the plan's receipt of a DRO, the plan should send an acknowledgement letter and QDRO procedures to the participant and each alternate payee. On final determination the plan should mail a determination if the order is or is not qualified |
|
QDRO Notice |
A reasonable period of time after plan’s receipt of DRO |
|
Notice of Suspension of Benefits
|
During first calendar month in which plan withholds a payment. Required in SPD |
|
Statement of Deferred Benefits |
No later than filing of Form 5500 (Schedule SSA) |
|
Annual Funding Notice
|
Not later than 120 days after the plan year for large plans. Small plans (100 or fewer participants on each day during the plan year preceding the notice year) must furnish the notice no later than the earlier of the date on which the annual report is filed or the latest date the annual report must be filed (including extensions) |
|
Notice of Failure to Meet Minimum Funding Standards
|
No later than 60 days after contribution due date unless a waiver is requested. This Notice is considered satisfied if an ERISA §4011 Notice is given |
|
Statement of Accrued and Vested Pension Benefits
|
Within 45 days after the end of the period |
|
Notice of Funding-Based Limitation (ERISA 101(j))
|
Generally, within 30 days after a plan becomes subject to a specified funding-based limitation |
|
204(h) Notice of Significant Reduction in Benefit Accruals |
At least 45 days before effective date of amendment |
|
Notice of Failure to Meet Minimum Funding Standards
|
Must be furnished within a “reasonable” period of time after the failure. Notice is not required if a funding waiver is requested in a timely manner; if waiver is denied, notice must be provided within 60 days after the denial |
