A recent article in Employee Benefits News pointed out the confusion for plan sponsors that surrounds requests for plan documentation. Guidelines require that plan administrators comply with requests for plan documentation within 30 days or face fines of $110 per day. For those plan sponsors who farm out the administration of the plan to a third party, sponsors might think they are off the hook. However, this article points out that plan sponsors may still maintain the fiduciary responsibility to ensure compliance with disclosure regulations.
To play it safe and ensure fiduciary duties are met, plan documents should be kept on hand to provide to any participant or beneficiary that makes a request to the plan sponsor.
Plan sponsor should keep on hand
- Plan Summary
- Annual report- if one exists
- Any bargaining agreement, contract or trust document used to establish the plan