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ARA Requests DOL Relief on Certain ERISA Notice and Disclosure Requirements

Advocacy
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