What information must be provided to participants to satisfy the disclosure and reporting requirements under ERISA?
Basic information regarding the way the plan works is in the Summary Plan Description, which must be provided to all participants under ERISA. Certain information is provided to the participant through legal forms which the employee must complete. Upon entering the plan the participant must usually complete a Salary Reduction Election form, Directed Investment form and Beneficiary Designation & Pre-Retirement Survivor Annuity forms. When the employee terminates participation in the plan, several forms must be completed to receive the distribution. A participant in the plan should receive, annually, a participant statement showing the development of the vested account balance during the year as well as a copy of the Summary Annual Report of the Plan, which reflects the plan’s current financial condition and a summary of the year’s income. Information and forms on hardships, loans and Qualified Domestic Relations Orders (QDRO’s) must also be provided, where applicable.
