Plan Administration, Reporting, and Disclosure
The Reporting Architecture
Plan administrators must file Form 5500 annually for most ERISA plans, with schedules for financial information, service provider fees, and actuarial data. Small plans may file the short form. Summary plan descriptions, summaries of material modifications, and annual funding notices are core disclosure documents.
Timing Rules
Know the deadlines: Form 5500 is due the last day of the seventh month after the plan year ends, extendable. SPDs are generally due within 120 days of plan establishment. SMMs are due within 210 days after the plan year in which a material change occurs. Participant-directed fee disclosures follow specific timing rules.
Administration Traps
- Confusing the 5500 filing deadline with the audit requirement threshold (generally 100 participants).
- Forgetting that a plan with fewer than 100 participants may still need an audit if it holds nonqualifying assets.
- Missing the distinction between an SPD and an SMM.
- Assuming electronic delivery is always permitted; consent rules apply.
Worked Example
A calendar-year plan amends its vesting schedule in March. The material modification must be described in an SMM generally within 210 days after the end of the plan year in which the change was adopted. If the change is a material reduction in benefits, disclosure must occur within 60 days.
Rule of Thumb
For any disclosure question, identify the document, the triggering event, and the deadline. Most errors come from mixing the trigger with the deadline.