Removal of Superseded Regulations Relating to Plan Descriptions and
Summary Plan Descriptions, and Other Technical Conforming Amendments;
Final Rule [01/07/2002]
Volume 67, Number 4, Page 771-777
[[Page 771]]
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Part II
Department of Labor
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Pension and Welfare Benefits Administration
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29 CFR Parts 2520, 2560, and 2570
Removal of Superseded Regulations Relating to Plan Descriptions and
Summary Plan Descriptions, and Other Technical Conforming Amendments;
Final Rule
Furnishing Documents To The Secretary of Labor on Request Under ERISA
Section 104(a)(6) And Assessment Of Civil Penalties Under ERISA Section
502(c)(6); Final Rule
[[Page 772]]
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
29 CFR Parts 2520 and 2560
RIN 1210-AA66
Removal of Superseded Regulations Relating to Plan Descriptions
and Summary Plan Descriptions, and Other Technical Conforming
Amendments
AGENCY: Pension and Welfare Benefits Administration, Department of
Labor.
ACTION: Final rule.
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SUMMARY: This document contains a final rulemaking that removes certain
provisions from the Code of Federal Regulations (CFR) that were
superseded, in whole or in part, by amendments of the Employee
Retirement Income Security Act of 1974 (ERISA) enacted as part of
section 1503 of the Taxpayer Relief Act of 1997 (TRA ``97). These TRA
``97 amendments eliminated the ERISA requirements that plan
administrators file summary plan descriptions (SPDs) and summaries of
material modifications (SMMs) with the Department of Labor
(Department). The amendments also eliminated all requirements
pertaining to plan descriptions. In addition to removing superseded
regulations from the CFR, this final rule makes miscellaneous technical
amendments to the CFR designed to correct affected cross-references.
The final rule affects employee pension and welfare benefit plans, plan
sponsors, administrators and fiduciaries, and plan participants and
beneficiaries.
DATES: The amendments contained herein will be effective March 8, 2002.
The amendments contained herein will be applicable as of the August 5,
1997 effective date of section 1503 of TRA '97.
FOR FURTHER INFORMATION CONTACT: Lisa M. Fields, Office of Regulations
and Interpretations, Pension and Welfare Benefits Administration, U.S.
Department of Labor, (202) 693-8500 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
1. Overview
On August 5, 1999, the Department published in the Federal Register
(64 FR 42792) a proposed rule to implement certain amendments to ERISA
added as part of TRA '97. TRA '97 amended sections 101(b), 102, and
104(a)(1) of ERISA to eliminate the requirements that plan
administrators file SPDs, SMMs, and plan descriptions with the
Department.\1\ TRA '97 also amended section 104(b) of ERISA to
eliminate the requirement that plan administrators furnish plan
descriptions to participants and beneficiaries. These statutory
amendments superseded, in whole or in part, the Department's
regulations that implemented the SPD, SMM, and plan description filing
requirements. This final rule removes those superseded regulations from
the CFR.\2\ This final rule also makes several technical conforming
amendments to reflect the fact that certain regulatory provisions
granting relief from certain plan description, SPD, and SMM
requirements have also been superseded and rendered obsolete by the TRA
'97 amendments. Finally, the final rule corrects affected regulatory
and statutory cross-references in parts 2520 and 2560 of Chapter XXV of
Title 29 of the CFR. A chart identifying each regulation that is
changed by this final rule is printed below.
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\1\ Prior to 1979, the administrator of an employee benefit plan
subject to the provisions of Part 1 of Title I of ERISA was required
to file with the Department a plan description (Form EBS-1) to
satisfy the statutory filing requirements of section 104(a) and 29
CFR 2520.104a-2. See 41 FR 16957 (April 23, 1976). In 1979, the
Department amended 29 CFR 2520.104a-2 (44 FR 31639 (June 1, 1979)),
to provide that the administrator would satisfy the plan description
filing requirements of section 104(a)(1)(B) by filing with the
Department SPDs and updated SPDs in accordance with section
104(a)(1)(C) and the regulations thereunder.
\2\ The Department is also publishing in today's Federal
Register a separate final rule to implement related TRA '97
amendments that added sections 502(c)(6) and 104(a)(6) to Title I of
ERISA. Section 104(a)(6) provides that the administrator of any
employee benefit plan must furnish to the Department, upon request,
any documents relating to the employee benefit plan, including but
not limited to, the latest SPD, and the bargaining agreement, trust
agreement, contract, or other instrument under which the plan is
established or operated. Section 502(c)(6) provides that if, within
30 days of a request by the Department to a plan administrator for
documents under section 104(a)(6), the plan administrator fails to
furnish the material requested to the Department, the Department may
assess a civil penalty against the plan administrator of up to $100
a day from the date of such failure, but in no event in excess of
$1,000 per request.
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2. Public Comments and Adoption of Final Rule
The Department received no comments concerning the proposal, and
the final rule being adopted herein is substantially in the form
proposed. A technical conforming change to 29 CFR 2520.104b-2(g) that
was inadvertently omitted from the proposal has been added to the final
rule.
3. Summary of Final Rule
This final rule removes, some in whole and some in part, the
following superseded regulations from 29 CFR part 2520. This final rule
also reserves certain removed sections of the CFR to preserve the
continuity of codification in the CFR.
A. Removal of Regulations Superseded in Whole
This final rule removes and reserves sections 2520.102-1 and
2520.104a-2 because they were superseded by paragraphs (a) and (c) of
section 1503 of TRA '97 which eliminated sections 101(b)(2) and
104(a)(1)(B) of ERISA. The removed regulations required plan
administrators to file a plan description with the Department in
accordance with sections 101(b)(2) and 104(a)(1)(B) of ERISA. See supra
note 1.
This final rule removes and reserves section 2520.104a-3 because it
was superseded by paragraphs (a) and (c) of section 1503 of TRA '97
which eliminated sections 101(b)(1) and 104(a)(1)(C) of ERISA. The
removed regulation implemented the requirement in sections 101(b)(1)
and 104(a)(1)(C) of ERISA that plan administrators file with the
Department a copy of any SPD that is required to be furnished to
participants covered under the plan and beneficiaries receiving
benefits under the plan.
This final rule removes and reserves sections 2520.104a-4 and
2520.104a-7 because they were superseded by paragraphs (a) and (c) of
section 1503 of TRA '97 which eliminated sections 101(b)(3), 102(a)(2),
and 104(a)(1)(D) of ERISA. The removed regulations implemented sections
101(b)(3), 102(a)(2), and 104(a)(1)(D) of ERISA which required plan
administrators to file with the Department a copy of summaries of
material modifications in the terms of the plan and summaries of any
changes in the information required to be in the SPD.
B. Removal of Regulations Superseded in Part
This final rule amends section 2520.104-20 to reflect the fact that
certain reporting relief granted by that regulation is no longer needed
in light of TRA '97. Specifically, section 2520.104-20 exempts certain
unfunded or insured welfare plans with fewer than 100 participants
from, among others, the requirements to file plan descriptions, SPDs,
and SMMs with the Department. Inasmuch as plan descriptions, SPDs, and
SMMs are no longer required to be filed under ERISA as amended by TRA
'97, this final rule amends section 2520.104-20(a) to remove the
provisions that granted relief from those filing requirements.
This final rule similarly amends section 2520.104-21 to reflect the
fact
[[Page 773]]
that the SPD, SMM, and plan description filing relief granted by that
regulation is no longer needed in light of the TRA '97 elimination of
those filing requirements. Specifically, section 2520.104-21 provides a
limited exemption from, among others, the requirements to file SPDs,
SMMs, and plan descriptions with the Department for welfare benefit
plans that cover fewer than 100 participants at the beginning of the
plan year, are part of a group insurance arrangement within the meaning
of the regulation, and that otherwise satisfy the conditions of section
2520.104-21(b). This final rule amends section 2520.104-21(a) by
removing the provisions on filing SPDs, SMMs, and plan descriptions
because these documents are no longer required to be filed under ERISA
as amended by TRA '97.\3\
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\3\ Section 2520.104-21(d)(3) was previously amended to
eliminate references to requirements to file plan descriptions,
SPDs, and SMMs as part of a final rule adopting amendments to
ERISA's annual reporting regulations. See 65 FR 21068, 21084 (April
19, 2000).
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This final rule amends sections 2520.104-20(c) and 2520.104-21(c)
to confirm that, under the exemption, plan administrators continue to
be obligated to furnish certain information to the Secretary on request
by changing the reference in these subsections from section 104(a)(1)
to section 104(a)(6). The amendments made by this final rule do not
otherwise change the relief available in sections 2520.104-20 and
2520.104-21.
This final rule further amends sections 2520.104-20 and 2520.104-21
to reflect the fact that the relief granted by those regulations from
the requirement to disclose plan descriptions is no longer needed in
light of the TRA '97 elimination of all plan description requirements
from Title I of ERISA. These regulations exempted eligible welfare
plans from the requirements to (1) furnish upon written request of any
participant or beneficiary a copy of the plan description and (2) make
copies of the plan description available in the principal office of the
administrator and such other places as may be necessary for examination
by any participant or beneficiary. This final rule amends sections
2520.104-20(a)(2) and (a)(3) and 2520.104-21(a)(1) and (a)(2) by
removing the provisions on disclosing plan descriptions because plan
descriptions are no longer required to be furnished or made available
under ERISA as amended by TRA '97.
This final rule amends sections 2520.104-26 and 2520.104-27 to
reflect the fact that the relief granted by those regulations from the
requirements to file plan descriptions, SPDs, and SMMs is no longer
needed in light of the TRA '97 elimination of those filing
requirements. These regulations provided certain unfunded dues financed
welfare and pension plans maintained by employee organizations with a
limited exemption from, among others, the requirement to file plan
descriptions and a simplified option for complying with the filing and
disclosure requirements applicable to SPDs. This final rule amends
sections 2520.104-26 and 2520.104-27 by removing the provisions on plan
descriptions and further amends sections 2520.104-26 and 2520.104-27 to
remove the simplified option for complying with the SPD filing
requirements because plan descriptions and SPDs are no longer required
to be filed with the Department under ERISA as amended by TRA '97. The
amendments made by this final rule do not otherwise change the relief
available in section 2520.104-26 and 2520.104-27.
C. Technical Conforming Amendments
This final rule also makes technical changes that are needed to
conform certain cross-references in 29 CFR parts 2520 and 2560 to
sections of ERISA as amended by TRA '97. For example, regulation
section 2520.104-43(a) refers to ERISA section 104(a)(1)(A) as the
authority for the requirement to file annual reports with the
Department. After TRA '97, the correct citation is to section 104(a)(1)
of ERISA. Similar technical changes have also been made to conform
internal CFR cross-references.\4\
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\4\ The proposal included conforming amendments to sections
2520.103-1(a), 2520.103-5(a), 2520.103-5(c)(1)(i), 2520.103-
5(c)(1)(iii), 2520.103-5(c)(2)(ii), 2520.103-5(c)(2)(iii), 2520.103-
5(c)(3), 2520.103-12(a), and 2520.104-41(b) to reflect a cross-
reference correction by replacing ``section 104(a)(1)(A)'' with
``section 104(a)(1).'' These changes were adopted as final as part
of an April 12, 2000 final rulemaking relating to the annual
reporting and disclosure requirements under part 1 of Title I of
ERISA. See 65 FR 21068 (April 19, 2000). Accordingly, these changes
are not included in this rule.
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D. Quick Reference Chart
The chart below is intended to provide interested persons with a
quick reference tool for identifying each section of 29 CFR parts 2520
and 2560 that is being amended by this final rule. For each regulation
section being amended, the chart lists, in separate columns, what is
being removed, what is being added, and a brief statement of the reason
for the change.
Quick Reference Chart
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CFR section(s) Remove Add Reason(s)
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2520.102-1........................... The whole section...... ``Reserved''........... All ``plan
description''
requirements
eliminated from ERISA.
2520.102-4........................... The last sentence...... Nothing................ SPD filing requirement
eliminated.
2520.104-4(a)........................ Last sentence.......... Nothing................ SPD filing requirement
eliminated.
2520.104-20(a) (introductory text)... ``any of the followind Nothing................ All ``plan
documents: Plan description''
description, copy of requirements
summary plan eliminated from ERISA,
description, SPD filing requirement
description of eliminated, and SMM
material modification filing requirement
in the terms of a plan eliminated.
or change in the
information required
to be included in the
plan description,''.
2520.104-20(a)(2).................... ``plan description,''.. Nothing................ All ``plan
description''
requirements
eliminated from ERISA.
2520.104-20(a)(3).................... ``plan description Nothing................ All ``plan
and''. description''
requirements
eliminated from ERISA.
2520.104-20(c)....................... ``(section 104(a)(1))'' ``(section 104(a)(6))'' Requirement to furnish
documents to the
Department upon
request moved to
section 104(a)(6).
[[Page 774]]
2520.104-21(a) (introductory text)... ``with the Secretary After the word file, All ``plan
any of the following add: ``with the description''
documents: Plan Secretary a terminal requirements
description, copy of report or furnish upon eliminated from ERISA,
summary plan written request of any SPD filing requirement
description, participant or eliminated, and SMM
description of beneficiary a copy of filing requirement
material modification any terminal report as eliminated.
in the terms of a plan required by section
or change in the 104(b)(4) of the
information required Act.''.
to be included in the
plan description, and
terminal report. In
addition, the
administrator of a
plan exempted under
this section:''.
2520.104-21(a)(1).................... All of (a)(1).......... Nothing................ All ``plan
description''
requirements
eliminated from ERISA.
2520.104-21(a)(2).................... All of (a)(2).......... Nothing................ All ``plan
description''
requirements
eliminated from ERISA.
2520.104-21(c) (2nd parenthetical)... ``section ``section 104(a)(1)''.. Cross-reference
104(a)(1)(A)''. correction.
2520.104-21(c) (3rd parenthetical)... ``section 104(a)(1)''.. ``section 104(a)(6)''.. Requirement to furnish
documents to the
Department upon
request moved to
section 104(a)(6).
2520.104-23(b)(2).................... ``104(a)(1)''.......... ``104(a)(6)''.......... Requirement to furnish
documents to the
Department upon
request moved to
section 104(a)(6).
2520.104-24(b)....................... ``104(a)(1)''.......... ``104(a)(6)''.......... Requirement to furnish
documents to the
Department upon
request moved to
section 104(a)(6).
2520.104-25.......................... ``104(a)(1)''.......... ``104(a)(6)''.......... Requirement to furnish
documents to the
Department upon
request moved to
section 104(a)(6).
2520.104-26(a)....................... All of paragraph (a), New paragraph (a), Paragraph (a)
(a)(1), (a)(2), and (a)(1), and (a)(2). restructured to
(a)(3). reflect the fact that
``plan description''
requirements and the
SPD filing requirement
were eliminated from
ERISA.
2520.104-27(a)....................... All of paragraph (a), New paragraph (a), Paragraph (a)
(a)(1), (a)(2), and (a)(1), and (a)(2). restructured to
(a)(3). reflect the fact that
``plan description''
requirements and the
SPD filing requirement
were eliminated from
ERISA.
2520.104-43(a)....................... ``section ``section 104(a)(1)''.. Cross-reference
104(a)(1)(A)''. correction.
2520.104-44(d)....................... ``section ``section 104(a)(1)''.. Cross-reference
104(a)(1)(A)''. correction.
2520.104a-2.......................... Whole section.......... ``Reserved''........... All ``plan
description''
requirements
eliminated from ERISA.
2520.104a-3.......................... Whole section.......... ``Reserved''........... SPD filingrequirement
eliminated.
2520.104a-4.......................... Whole section.......... ``Reserved''........... SMM filing requirement
eliminated.
2520.104a-5(a)....................... ``section ``section 104(a)(1)''.. Cross-reference
104(a)(1)(A)''. correction.
2520.104a-5(a)(1).................... All text in paragraph ``Reserved''........... Provision obsolete.
(a)(1).
2520.104a-7.......................... Whole section.......... ``Reserved''........... SMM filing requirement
eliminated.
2520.104b-1(b)(3).................... ``plan description''... Nothing................ All ``plan
description''
requirements
eliminated from ERISA.
2520.104b-2(g)....................... ``to file with the Nothing................ SPD filing requirement
Secretary or''. eliminated.
2520.104b-3(f)....................... All of paragraph (f)... Nothing................ Part of paragraph (f)
superseded by TRA '97
and the rest of the
paragraph made
obsolete by this
rule's removal of Sec.
2520.104a-3.
2520.104b-3(g)....................... All of paragraph (9g).. Nothing................ Paragraph (g)
superseded by TRA '97
by this rule's removal
of Sec. 2520.104a-3.
2560.502c-2(a)....................... ``section 101(b)(4)''.. ``section 101(b)(1)''.. Cross-reference
correction.
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Executive Order 12866 Statement
Under Executive Order 12866, the Department must determine whether
the regulatory action is ``significant'' and therefore subject to the
requirements of the Executive Order and subject to review by the Office
of Management and Budget (OMB). Under section 3(f), the order defines a
``significant regulatory
[[Page 775]]
action'' as an action that is likely to result in a rule (1) having an
annual effect on the economy of $100 million or more, or adversely and
materially affecting a sector of the economy, productivity,
competition, jobs, the environment, public health or safety, or State,
local or tribal governments or communities (also referred to as
``economically significant''); (2) creating serious inconsistency or
otherwise interfering with an action taken or planned by another
agency; (3) materially altering the budgetary impacts of entitlement
grants, user fees, or loan programs or the rights and obligations of
recipients thereof; or (4) raising novel legal or policy issues arising
out of legal mandates, the President's priorities, or the principles
set forth in the Executive Order. Pursuant to the terms of the
Executive Order, it has been determined that this action is not
significant within the meaning of the Executive Order.
Paperwork Reduction Act
The rule being issued here is not subject to the requirements of
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) because it
does not contain an ``information collection request'' as defined in 44
U.S.C. 3502(3).
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires each
Federal agency to prepare a final regulatory flexibility analysis when
promulgating a final rule unless the head of the agency certifies that
the final rule will not have a significant economic impact on a
substantial number of small entities. Small entities include small
businesses, organizations, and governmental jurisdictions. Because this
rule would remove certain provisions of the CFR and make a number of
technical amendments to the CFR designed to correct cross-references
affected by amendments to ERISA enacted as part of TRA '97, the rule
has no impact, independent of the statutory change eliminating the SPD
and SMM filing requirements, on small plans. As a result, the
undersigned certifies that this final rule does not have a significant
impact on a substantial number of small entities. The factual basis for
this certification is the same regardless of whether one uses the
definition of small entity found in regulations issued by the Small
Business Administration (13 CFR 121.201) or one defines small entity,
on the basis of section 104(a)(2) of ERISA, as an employee benefit plan
with fewer than 100 participants.
Small Business Regulatory Enforcement Fairness Act
The rule being issued here is subject to the provisions of the
Small Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C.
801 et seq.) and has been transmitted to Congress and the Comptroller
General for review. The rule is not a ``major rule'' as that term is
defined in 5 U.S.C. 804, because it is not likely to result in (1) an
annual effect on the economy of $100 million or more; (2) a major
increase in costs or prices for consumers, individual industries, or
Federal, State, or local government agencies, or geographic regions; or
(3) significant adverse effects on competition, employment, investment,
productivity, innovation, or on the ability of United States-based
enterprises to compete with foreign-based enterprises in domestic or
export markets.
Unfunded Mandates Reform Act
For purposes of the Unfunded Mandates Reform Act of 1995 (Pub. L.
104-4), as well as Executive Order 12875, this rule does not include
any Federal mandate that may result in expenditures by State, local, or
tribal governments, and will not impose an annual burden of $100
million or more on the private sector.
Federalism Statement
Executive Order 13132 (August 4, 1999) outlines fundamental
principles of federalism and requires the adherence to specific
criteria by Federal agencies in the process of their formulation and
implementation of policies that have substantial direct effects on the
States, the relationship between the national government and States, or
on the distribution of power and responsibilities among the various
levels of government. This final rule does not have federalism
implications because it has no substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government. Section 514 of ERISA provides, with certain
exceptions specifically enumerated, that the provisions of Titles I and
IV of ERISA supersede any and all laws of the States as they relate to
any employee benefit plan covered under ERISA. Further, this final rule
implements certain revisions to annual reporting and disclosure
regulations which have been in effect in similar form for many years.
The elimination of superseded regulations from the CFR and correction
of cross-references ensure consistency between regulations and
statutory requirements, and do not alter the fundamental requirements
of the statute with respect to the reporting and disclosure
requirements for employee benefit plans, and as such has no
implications for the States or the relationship or distribution of
power between the national government and the States.
Statutory Authority
This final rule is promulgated pursuant to the authority contained
in section 505 of ERISA (Pub. L. 93-406, 88 Stat. 894, 29 U.S.C. 1135)
and sections 101(b) and 104(a)(1) of ERISA, as amended, and under the
Secretary of Labor's Order No. 1-87, 52 FR 13139, April 21, 1987.
List of Subjects
29 CFR Part 2520
Employee benefit plans, Group health plans, Pension plans, Welfare
benefit plans.
29 CFR Part 2560
Claims, Employee benefit plans, Law enforcement, Pensions.
For the reasons set forth above, parts 2520 and 2560 of Chapter XXV
of Title 29 of the Code of Federal Regulations are amended as follows:
PART 2520--RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE
1.The authority citation for part 2520 continues to read as
follows:
Authority: Secs. 101, 102, 103, 104, 105, 109, 110, 111 (b)(2),
111(c), and 505, Pub. L. 93-406, 88 Stat. 840-52 and 894 (29 U.S.C.
1021-1025, 1029-31, and 1135); Secretary of Labor's Order No. 27-74,
13-76, 1-87, and Labor Management Services Administration Order 2-6.
Sections 2520.102-3, 2520.104b-1 and 2520.104b-3 also are issued
under sec. 101(a), (c) and (g)(4) of Pub. L. 104-191, 110 Stat.
1936, 1939, 1951 and 1955 and, sec. 603 of Pub. L. 104-204, 110
Stat. 2935 (29 U.S.C. 1185 and 1191c).
Sec. 2520.102-1 [Removed]
2. Section 2520.102-1 is removed and reserved.
3. Revise Sec. 2520.102-4 to read as follows:
Sec. 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
[[Page 776]]
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 Sec. 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 Sec. 2520.102-2, and shall contain all information which
is required to be contained in the summary plan description under
Sec. 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 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.
4. Revise paragraph (a) of Sec. 2520.104-4 to read as follows:
Sec. 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.
* * * * *
5. Revise the introductory text in paragraph (a) and paragraphs
(a)(2), (a)(3), and (c) of Sec. 2520.104-20 to read as follows:
Sec. 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--
* * * * *
(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.
* * * * *
(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).
* * * * *
6. Amend Sec. 2520.104-21 by revising paragraphs (a) and (c) to
read as follows:
Sec. 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.
* * * * *
(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).
* * * * *
Sec. 2520.104-23 [Amended]
7. Section 2520.104-23 is amended by removing from paragraph (b)(2)
the term ``104(a)(1)'' and adding, in its place, the term
``104(a)(6)''.
Sec. 2520.104-24 [Amended]
8. Section 2520.104-24 is amended by removing from paragraph (b)
the term ``104(a)(1)'' and adding, in its place, the term
``104(a)(6)''.
Sec. 2520.104-25 [Amended]
9. Section 2520.104-25 is amended by removing the term
``104(a)(1)'' and adding, in its place, the term ``104(a)(6)''.
10. In Sec. 2520.104-26, revise paragraph (a) to read as follows:
Sec. 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
[[Page 777]]
Reporting and Disclosure Act (LMRDA) and regulations thereunder, and
(2) In lieu of a summary plan description, the employee
organization constitution or by-laws may be furnished in accordance
with Sec. 2520.104b-2 to participants and beneficiaries together with
any supplement to such document necessary to meet the requirements of
Secs. 2520.102-2 and 2520.102-3.
* * * * *
11. In Sec. 2520.104-27, revise paragraph (a) to read as follows:
Sec. 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
Sec. 2520.104b-2 to participants and beneficiaries together with any
supplement to such document necessary to meet the requirements of
Secs. 2520.102-2 and 2520.102-3.
* * * * *
Sec. 2520.104-43 [Amended]
12. Section 2520.104-43 is amended by removing from paragraph (a)
the term ``section 104(a)(1)(A)'' and adding, in its place, ``section
104(a)(1)''.
Sec. 2520.104-44 [Amended]
13. Section 2520.104-44 is amended by removing from paragraph (d)
the term ``section 104(a)(1)(A)'' and adding, in its place, ``section
104(a)(1)''.
Sec. 2520.104a-2 [Removed]
14. Section 2520.104a-2 is removed and reserved.
Sec. 2520.104a-3 [Removed]
15. Section 2520.104a-3 is removed and reserved.
Sec. 2520.104a-4 [Removed]
16. Section 2520.104a-4 is removed and reserved.
Sec. 2520.104a-5 [Amended]
17-18. Section 2520.104a-5 is amended by removing from paragraph
(a) the term ``section 104(a)(1)(A)'' and adding, in its place, the
term ``section 104(a)(1)''; and by removing and reserving paragraph
(a)(1).
Sec. 2520.104a-7 [Removed]
19. Section 2520.104a-7 is removed and reserved.
Sec. 2520.104b-1 [Amended]
20. Section 2520.104b-1 is amended by removing from the third
sentence of paragraph (b)(3) the term ``plan description''.
21. In Sec. 2520.104b-2, revise paragraph (g)(1) to read as
follows:
Sec. 2520.104b-2 Summary plan description.
* * * * *
(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.
* * * * *
Sec. 2520.104b-3 [Amended]
22. Section 2520.104b-3 paragraphs (f) and (g) are removed and
reserved.
PART 2560--RULES AND REGULATIONS FOR ADMINISTRATION AND ENFORCEMENT
23. The authority citation for part 2560 continues to read as
follows:
Authority: Secs. 502, 505 of ERISA, 29 U.S.C. 1132, 1135, and
Secretary's Order 1-87, 52 FR 13139 (April 21, 1987).
Section 2560.502-1 also issued under sec. 502(b)(2), 29 U.S.C.
1132(b)(2).
Section 2560.502i-1 also issued under sec. 502(i), 29 U.S.C.
1132(i).
Section 2560.503-1 also issued under sec. 503, 29 U.S.C. 1133.
Sec. 2560.502c-2 [Amended]
24. Section 2560.502c-2 is amended by removing from paragraph
(a)(1) and (a)(2) the term ``section 101(b)(4)'' each time it appears
and adding, in its place, the term ``section 101(b)(1)''.
Signed at Washington, DC, this 22nd day of December, 2001.
Ann L. Combs,
Assistant Secretary, Pension and Welfare, Benefits Administration, U.S.
Department of Labor.
[FR Doc. 02-140 Filed 1-4-02; 8:45 am]
BILLING CODE 4510-29-P
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