What does ERISA require?
Responsibilities under ERISA vary depending on the type of the plan involved. Pension plans are subject to all of the rules, while welfare benefit plans must only meet the rules on reporting and disclosure, fiduciary responsibility, prohibited transaction and benefit claims procedures. Reporting. Administrators of covered plans must file summary plan descriptions (SPDs), Summaries of Material Modifications (SMMs), and annual reports, including Form 5500 for each plan. Disclosure. Certain information must be communicated to plan participants so that they can be informed about their rights under the plan. These include SPDs, updated SPDs, SMMs, Summary annual reports (SARs), and notice of claim denials if a claim has been denied. Communications must be sent to employees in a method likely to result in full distribution, not merely a posting. It also must be easily understood by the average participant. ERISA also requires notification of continuation of benefits under COBRA, an explanati
