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The following information is derived from information contained in the publication, “The Fiduciary Duty of Participant Disclosures,” by Kevin Wiggins of Thorpe Reed & Armstrong.
ERISA contains three broad categories of disclosures, Wiggins notes.
1. Automatic. Some disclosures are automatically required at specific times or upon certain events, Wiggins reminds. For example, he says, a summary plan description (SPD) generally must be furnished automatically to a participant within 90 days after he or she becomes a plan participant.
2. Upon Request. Some provisions of ERISA require an administrator to furnish certain documents if a participant asks for them.
3. Materials That Must Be Made Available. ERISA requires administrators to make certain materials available to participants for examination at reasonable times and places.
Circumstances can affect the extent of a fiduciary’s duty of disclosure, Wiggins says. For instance, a fiduciary may have a duty to furnish disclosures automatically; in other circumstances, the fiduciary may have no disclosure responsibilities until a plan participant makes an inquiry; in still another, the fiduciary may voluntarily furnish information to participants, but that information may later change, in which case the fiduciary must provide up to date, accurate information.
Wiggins adds that retirement plan administrators may have a duty to provide participants with benefit statements, depending on the type of plan. And, he notes, many plan administrators also serve as plan fiduciaries who are subject to the disclosure requirements of ERISA Section 404(c), including the disclosure requirements for qualified default investment alternatives (QDIA) and the disclosure requirements that apply to automatic rollovers to IRAs.
The following information is derived from information contained in the publication, “The Fiduciary Duty of Participant Disclosures,” by Kevin Wiggins of Thorpe Reed & Armstrong.
ERISA contains three broad categories of disclosures, Wiggins notes.
1. Automatic. Some disclosures are automatically required at specific times or upon certain events, Wiggins reminds. For example, he says, a summary plan description (SPD) generally must be furnished automatically to a participant within 90 days after he or she becomes a plan participant.
2. Upon Request. Some provisions of ERISA require an administrator to furnish certain documents if a participant asks for them.
3. Materials That Must Be Made Available. ERISA requires administrators to make certain materials available to participants for examination at reasonable times and places.
Circumstances can affect the extent of a fiduciary’s duty of disclosure, Wiggins says. For instance, a fiduciary may have a duty to furnish disclosures automatically; in other circumstances, the fiduciary may have no disclosure responsibilities until a plan participant makes an inquiry; in still another, the fiduciary may voluntarily furnish information to participants, but that information may later change, in which case the fiduciary must provide up to date, accurate information.
Wiggins adds that retirement plan administrators may have a duty to provide participants with benefit statements, depending on the type of plan. And, he notes, many plan administrators also serve as plan fiduciaries who are subject to the disclosure requirements of ERISA Section 404(c), including the disclosure requirements for qualified default investment alternatives (QDIA) and the disclosure requirements that apply to automatic rollovers to IRAs.
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