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If you have a question about your retirement plan, you can start by looking
for an answer in the information that the plan provides. You can request
this information from your plan administrator, the person who is in charge
of running the plan. Your employer can tell you how to contact your plan
administrator.
Information Provided By The Retirement Plan
Each retirement plan is required to have a formal, written plan document
that details how it operates and its requirements. As noted previously,
there is also a booklet that describes the key plan rules, called the
Summary Plan Description (SPD), which should be much easier to read and
understand. The SPD should include a summary of any material changes to the
plan or to the information required to be in the SPD. In many cases, you can
start with the SPD and then look at the plan document if you still have
questions.
In addition, plans must provide you with a number of notices. Some of the
key notices are described in Table 5.
For example, defined contribution plans, such as 401k
plans, generally are required to provide advance notice to employees
when a “blackout period” occurs. A blackout period is when a participant’s
right to direct investments, take loans, or obtain distributions is
suspended for a period of at least three consecutive business days. Blackout
periods can often occur when plans change recordkeepers or investment
options.
Some plan information, such as the Summary Plan Description, must be
provided to you automatically and without charge at the time periods
indicated below. You may request a Summary Plan Description at other times,
but your employer might charge you a copying fee. You must ask the plan if
you want other information, such as a copy of the written plan document or
the plan’s Form 5500 annual financial report, and you may have to pay a
copying fee. See Tables 5 and 6. Many employers provide benefit information
on a Web site.
In some cases, plans provide information more frequently than required by
Federal law. For instance, many large defined contribution plans provide
quarterly benefit statements, and some plans allow participants to check
their statements online or by telephone.
The plan’s annual financial report (Form 5500) is also available (there is a
copying fee if over 100 pages) by contacting the U.S. Department of Labor,
EBSA Public Disclosure Facility, Room N-1513, 200 Constitution Avenue, NW,
Washington, D.C. 20210, Tel: 202.693.8673. In addition, if your plan
administrator does not provide you, as a participant covered under the plan,
with a copy of the Summary Plan Description automatically or after you
request it, you may contact the Department of Labor toll free at
1.866.444.EBSA (3272) for help.
Table 5 - Key information your plan administrator must provide automatically
|
What |
Description |
|
When |
|
Summary Plan Description (SPD) |
A summary version of
the plan document and other important plan information, in
easier-to-understand language. |
|
Within
90 days of becoming a participant in the plan, and an updated copy
every 10 years (5 years if the plan has been amended).
|
|
Summary of Material Modifications |
A summary of significant plan changes
or changes in the information required to be in the SPD.
|
|
Within 7
months of the end of the plan year in which the changes were made.
|
|
Summary Annual Report |
A summary of
financial information filed by the plan on its Form 5500 Annual
Return/Report. |
|
Within 9
months after the end of the plan year or 2 months after the annual
report filing deadline.
|
|
Notice of Significant Reduction in Future Benefit Accruals |
Notice of any
significant reduction in the rate of future benefit accruals, the
elimination, or significant reduction in an early retirement benefit
or retirement-type subsidy. Applies to defined benefit plans and
certain defined contribution plans. |
|
Within a
reasonable time before the effective date of the plan amendment.
|
|
Blackout Notice |
Notice of a period
of more than 3 consecutive business days when there is a temporary
suspension, limitation or restriction on directing or diversifying
plan assets, obtaining loans, or obtaining distributions. Applies to
401k or other individual account plans. |
|
Generally, at least 30 days before the blackout date.
|
|
Notice to Participants of Underfunded Plan |
Plan For defined
benefit plans that are less than 90% funded, the notice of the
funding level of the plan and information on PBGC guarantees.
|
|
Within 2
months after the due date for filing the annual report. |
Table 6 - Key information your plan administrator must provide upon written
request
|
What |
Description |
|
Cost |
|
Individual Benefit Statement |
Statements of total
accrued benefits and total vested pension benefits, and the earliest
date on which nonvested benefits become vested. |
|
Free (no
more than once a year)
|
| Plan
Documents |
Documents that provide the terms of the
plan, including collective bargaining agreements and trust
agreements.
|
|
Reasonable copying charge
|
|
Annual Report (Form 5500) – most recent report |
Financial
information about the plan that most plans are required to file with
the government within 7 months of the end of the plan year. |
|
Reasonable copying charge
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What plan information should you review regularly?
If you are in a defined benefit plan, you should request an individual
benefit statement once a year and review its description of the total
benefits you have earned and whether you are vested in those benefits. Also
check to make sure your date of birth, date of hire, and the other
information included is correct.
Many defined contribution plans, including 401k plans, send participants
individual benefit statements. If you receive a statement, check it to make
sure all of the information is accurate. This information may include:
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Salary level
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Amounts that you and your employer have contributed
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Years of service with the employer
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Home address
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Social Security number
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Beneficiary designation
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Marital status
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The performance of your investments (defined contribution plan participants)
-
Fees paid by the plan and/or charged to participants. (For more information,
see the Department of Labor brochure A Look at 401k Plan Fees at www.dol.gov/ebsa or call the Department of Labor toll free at 1.866.444.EBSA
(3272).) Check with your plan to see if this information is included in
materials on your investment options, the benefit statement, the Summary
Plan Description or the plan’s annual report Form 5500. See
Part 7 for
more information on the fees that your employer can charge to your account.
Action Items
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Make sure you have received the plan’s Summary Plan Description and read it
for information on how your plan works.
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Read other documents you receive from your plan to make sure that you keep
up with any plan changes, and check that the information on your benefit
statement is accurate.
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If you are in a defined contribution plan, ask for information on the
investment choices available in the plan and find out when and how you can
change your plan account investments.
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If you suspect errors in your plan information, contact your plan
administrator or the human resources department.
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If there have been changes in your personal information, such as marriage,
divorce or change of address, contact your plan administrator or the human
resources department.
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Keep your plan documents in a safe place in case questions arise in the
future.
For more information or to have us answer any questions you may have,
please call 1-800-559-2900,
,
see our
contact Atlantic Financial
page,
or use this form to contact us:
Source
U.S. Department of Labor
(www.dol.gov)
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