29 U.S.C. § 1025 — Reporting of participant’s benefit rights

Page 396 TITLE 29—LABOR § 1025 retary shall issue regulations within 180 days after Au- gust 21, 1996, providing alternative mechanisms to de- livery by mail through which group health plans (as so defined) may notify participants and beneficiaries of material reductions in covered services or benefits.’’ 1989—Subsec. (a)(5)(B). Pub. L. 101–239, § 7894(b)(3), substituted a comma for period at end. Subsec. (b)(1). Pub. L. 101–239, § 7894(b)(4), struck out comma after ‘‘summary’’. 1987—Subsec. (b)(3). Pub. L. 100–203 inserted ‘‘(includ- ing the percentage determined under section 1023(d)(11) of this title)’’ after ‘‘material’’. 1986—Subsec. (a)(2)(A). Pub. L. 99–272 struck out pro- vision permitting the Secretary to waive or modify the requirements of section 1023(d)(6) of this title if he found that the interests of the plan participants were not harmed and the expense of compliance was not jus- tified by the needs of the participants, the Pension Benefit Guaranty Corporation, and the Department of Labor for some portion or all of the information other- wise required under section 1023(d)(6) of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2019 AMENDMENT Amendment by Pub. L. 116–94 applicable to plan years beginning after Dec. 31, 2020, see section 101(e) of Pub. L. 116–94, set out as a note under section 408 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–458 effective as if included in the provisions of Pub. L. 109–280 to which the amend- ment relates, except as otherwise provided, see section 112 of Pub. L. 110–458, set out as a note under section 72 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 2006 AMENDMENT Amendment by section 503(c)(1), (d) of Pub. L. 109–280 applicable to plan years beginning after Dec. 31, 2007, see section 503(f) of Pub. L. 109–280, set out as a note under section 1021 of this title. Pub. L. 109–280, title V, § 504(b), Aug. 17, 2006, 120 Stat. 945, provided that: ‘‘The amendment made by this sec- tion [amending this section] shall apply to plan years beginning after December 31, 2007.’’ EFFECTIVE DATE OF 1996 AMENDMENTS Amendment by Pub. L. 104–204 applicable with re- spect to group health plans for plan years beginning on or after Jan. 1, 1998, see section 603(c) of Pub. L. 104–204 set out as a note under section 1003 of this title. Amendment by Pub. L. 104–191 applicable with re- spect to group health plans for plan years beginning after June 30, 1997, except as otherwise provided, see section 101(g) of Pub. L. 104–191, set out as an Effective Date note under section 1181 of this title. EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if originally included in the pro- vision of the Employee Retirement Income Security Act of 1974, Pub. L. 93–406, to which such amendment relates, see section 7894(i) of Pub. L. 101–239, set out as a note under section 1002 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–203 applicable with re- spect to reports required to be filed after Dec. 31, 1987, see section 9342(d)(1) of Pub. L. 100–203, set out as a note under section 1132 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–272 effective Jan. 1, 1986, with certain exceptions, see section 11019 of Pub. L. 99–272, set out as a note under section 1341 of this title. REGULATIONS Secretary authorized, effective Sept. 2, 1974, to pro- mulgate regulations wherever provisions of this sub- chapter call for the promulgation of regulations, see section 1031 of this title. MODEL NOTICES AND FORMS For provisions requiring the Secretary of Labor to publish a model form for providing the statements, schedules, and other material required to be provided under subsec. (d) of this section, see section 503(e) of Pub. L. 109–280, set out as a note under section 1021 of this title. § 1025. Reporting of participant’s benefit rights (a) Requirements to provide pension benefit statements (1) Requirements (A) Individual account plan The administrator of an individual ac- count plan (other than a one-participant re- tirement plan described in section 1021(i)(8)(B) of this title) shall furnish a pen- sion benefit statement— (i) at least once each calendar quarter to a participant or beneficiary who has the right to direct the investment of assets in his or her account under the plan, (ii) at least once each calendar year to a participant or beneficiary who has his or her own account under the plan but does not have the right to direct the invest- ment of assets in that account, and (iii) upon written request to a plan bene- ficiary not described in clause (i) or (ii). (B) Defined benefit plan The administrator of a defined benefit plan (other than a one-participant retirement plan described in section 1021(i)(8)(B) of this title) shall furnish a pension benefit state- ment— (i) at least once every 3 years to each participant with a nonforfeitable accrued benefit and who is employed by the em- ployer maintaining the plan at the time the statement is to be furnished, and (ii) to a participant or beneficiary of the plan upon written request. Information furnished under clause (i) to a participant may be based on reasonable esti- mates determined under regulations pre- scribed by the Secretary, in consultation with the Pension Benefit Guaranty Corpora- tion. (2) Statements (A) In general A pension benefit statement under para- graph (1)— (i) shall indicate, on the basis of the lat- est available information— (I) the total benefits accrued, and (II) the nonforfeitable pension benefits, if any, which have accrued, or the ear- liest date on which benefits will become nonforfeitable, (ii) shall include an explanation of any permitted disparity under section 401(l) of title 26 or any floor-offset arrangement that may be applied in determining any accrued benefits described in clause (i), (iii) shall be written in a manner cal- culated to be understood by the average plan participant, and Page 397 TITLE 29—LABOR § 1025 (iv) may be delivered in written, elec- tronic, or other appropriate form to the extent such form is reasonably accessible to the participant or beneficiary. (B) Additional information In the case of an individual account plan, any pension benefit statement under clause (i) or (ii) of paragraph (1)(A) shall include— (i) the value of each investment to which assets in the individual account have been allocated, determined as of the most re- cent valuation date under the plan, includ- ing the value of any assets held in the form of employer securities, without re- gard to whether such securities were con- tributed by the plan sponsor or acquired at the direction of the plan or of the partici- pant or beneficiary, (ii) in the case of a pension benefit state- ment under paragraph (1)(A)(i)— (I) an explanation of any limitations or restrictions on any right of the partici- pant or beneficiary under the plan to di- rect an investment, (II) an explanation, written in a man- ner calculated to be understood by the average plan participant, of the impor- tance, for the long-term retirement secu- rity of participants and beneficiaries, of a well-balanced and diversified invest- ment portfolio, including a statement of the risk that holding more than 20 per- cent of a portfolio in the security of one entity (such as employer securities) may not be adequately diversified, and (III) a notice directing the participant or beneficiary to the Internet website of the Department of Labor for sources of information on individual investing and diversification, and (iii) the lifetime income disclosure de- scribed in subparagraph (D)(i). In the case of pension benefit statements de- scribed in clause (i) of paragraph (1)(A), a lifetime income disclosure under clause (iii) of this subparagraph shall be required to be included in only one pension benefit state- ment during any one 12-month period. (C) Alternative notice The requirements of subparagraph (A)(i)(II) are met if, at least annually and in accordance with requirements of the Sec- retary, the plan— (i) updates the information described in such paragraph which is provided in the pension benefit statement, or (ii) provides in a separate statement such information as is necessary to enable a participant or beneficiary to determine their nonforfeitable vested benefits. (D) Lifetime income disclosure (i) In general (I) Disclosure A lifetime income disclosure shall set forth the lifetime income stream equiva- lent of the total benefits accrued with respect to the participant or beneficiary. (II) Lifetime income stream equivalent of the total benefits accrued For purposes of this subparagraph, the term ‘‘lifetime income stream equivalent of the total benefits accrued’’ means the amount of monthly payments the partic- ipant or beneficiary would receive if the total accrued benefits of such partici- pant or beneficiary were used to provide lifetime income streams described in subclause (III), based on assumptions specified in rules prescribed by the Sec- retary. (III) Lifetime income streams The lifetime income streams described in this subclause are a qualified joint and survivor annuity (as defined in sec- tion 1055(d) of this title), based on as- sumptions specified in rules prescribed by the Secretary, including the assump- tion that the participant or beneficiary has a spouse of equal age, and a single life annuity. Such lifetime income streams may have a term certain or other features to the extent permitted under rules prescribed by the Secretary. (ii) Model disclosure Not later than 1 year after December 20, 2019, the Secretary shall issue a model life- time income disclosure, written in a man- ner so as to be understood by the average plan participant, which— (I) explains that the lifetime income stream equivalent is only provided as an illustration; (II) explains that the actual payments under the lifetime income stream de- scribed in clause (i)(III) which may be purchased with the total benefits ac- crued will depend on numerous factors and may vary substantially from the lifetime income stream equivalent in the disclosures; (III) explains the assumptions upon which the lifetime income stream equiv- alent was determined; and (IV) provides such other similar expla- nations as the Secretary considers ap- propriate. (iii) Assumptions and rules Not later than 1 year after December 20, 2019, the Secretary shall— (I) prescribe assumptions which admin- istrators of individual account plans may use in converting total accrued ben- efits into lifetime income stream equiva- lents for purposes of this subparagraph; and (II) issue interim final rules under clause (i). In prescribing assumptions under sub- clause (I), the Secretary may prescribe a single set of specific assumptions (in which case the Secretary may issue tables or fac- tors which facilitate such conversions), or ranges of permissible assumptions. To the extent that an accrued benefit is or may be invested in a lifetime income stream de- Page 398 TITLE 29—LABOR § 1025 scribed in clause (i)(III), the assumptions prescribed under subclause (I) shall, to the extent appropriate, permit administrators of individual account plans to use the amounts payable under such lifetime in- come stream as a lifetime income stream equivalent. (iv) Limitation on liability No plan fiduciary, plan sponsor, or other person shall have any liability under this subchapter solely by reason of the provi- sion of lifetime income stream equivalents which are derived in accordance with the assumptions and rules described in clause (iii) and which include the explanations contained in the model lifetime income disclosure described in clause (ii). This clause shall apply without regard to whether the provision of such lifetime in- come stream equivalent is required by sub- paragraph (B)(iii). (v) Effective date The requirement in subparagraph (B)(iii) shall apply to pension benefit statements furnished more than 12 months after the latest of the issuance by the Secretary of— (I) interim final rules under clause (i); (II) the model disclosure under clause (ii); or (III) the assumptions under clause (iii). (3) Defined benefit plans (A) Alternative notice In the case of a defined benefit plan, the requirements of paragraph (1)(B)(i) shall be treated as met with respect to a participant if at least once each year the administrator provides to the participant notice of the availability of the pension benefit statement and the ways in which the participant may obtain such statement. Such notice may be delivered in written, electronic, or other ap- propriate form to the extent such form is reasonably accessible to the participant. (B) Years in which no benefits accrue The Secretary may provide that years in which no employee or former employee bene- fits (within the meaning of section 410(b) of title 26) under the plan need not be taken into account in determining the 3-year pe- riod under paragraph (1)(B)(i). (b) Limitation on number of statements In no case shall a participant or beneficiary of a plan be entitled to more than 1 statement de- scribed in subparagraph (A)(iii) or (B)(ii) of sub- section (a)(1), whichever is applicable, in any 12- month period. (c) Individual statement furnished by adminis- trator to participants setting forth informa- tion in administrator’s Internal Revenue reg- istration statement and notification of for- feitable benefits Each administrator required to register under section 6057 of title 26 shall, before the expira- tion of the time prescribed for such registration, furnish to each participant described in sub- section (a)(2)(C) of such section, an individual statement setting forth the information with re- spect to such participant required to be con- tained in the registration statement required by section 6057(a)(2) of title 26. Such statement shall also include a notice to the participant of any benefits which are forfeitable if the partici- pant dies before a certain date. (Pub. L. 93–406, title I, § 105, Sept. 2, 1974, 88 Stat. 849; Pub. L. 98–397, title I, § 106, Aug. 23, 1984, 98 Stat. 1436; Pub. L. 101–239, title VII, §§ 7891(a)(1), 7894(b)(5), Dec. 19, 1989, 103 Stat. 2445, 2448; Pub. L. 109–280, title V, § 508(a)(1)–(2)(B), Aug. 17, 2006, 120 Stat. 949, 951; Pub. L. 116–94, div. O, title II, § 203, Dec. 20, 2019, 133 Stat. 3163; Pub. L. 117–328, div. T, title III, § 338(a), Dec. 29, 2022, 136 Stat. 5373.) AMENDMENT OF SUBSECTION (a)(2) Pub. L. 117–328, div. T, title III, § 338(a), (c), Dec. 29, 2022, 136 Stat. 5373, 5374, provided that, applicable with respect to plan years beginning after Dec. 31, 2025, subsection (a)(2) of this sec- tion is amended: (1) in subparagraph (A)(iv), by inserting ‘‘subject to subparagraph (E),’’ before ‘‘may be delivered’’; and (2) by adding at the end the following: ‘‘(E) Provision of paper statements ‘‘With respect to at least 1 pension benefit statement furnished for a calendar year with re- spect to an individual account plan under para- graph (1)(A), and with respect to at least 1 pen- sion benefit statement furnished every 3 cal- endar years with respect to a defined benefit plan under paragraph (1)(B), such statement shall be furnished on paper in written form ex- cept— ‘‘(i) in the case of a plan that furnishes such statement in accordance with section 2520.104b-1(c) of title 29, Code of Federal Reg- ulations; or ‘‘(ii) in the case of a plan that permits a participant or beneficiary to request that the statements referred to in the matter preceding clause (i) be furnished by electronic delivery, if the participant or beneficiary requests that such statements be delivered electronically and the statements are so delivered.’’ See 2022 Amendment notes below. Editorial Notes AMENDMENTS 2022—Subsec. (a)(2)(A)(iv). Pub. L. 117–328, § 338(a)(1), inserted ‘‘subject to subparagraph (E),’’ before ‘‘may be delivered’’. Subsec. (a)(2)(E). Pub. L. 117–328, § 338(a)(2), added sub- par. (E). 2019—Subsec. (a)(2)(B). Pub. L. 116–94, § 203(a), added cl. (iii) and concluding provisions. Subsec. (a)(2)(D). Pub. L. 116–94, § 203(b), added subpar. (D). 2006—Subsec. (a). Pub. L. 109–280, § 508(a)(1), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: ‘‘Each administrator of an employee pension benefit plan shall furnish to any plan participant or beneficiary who so requests in writing, a statement indicating, on the basis of the lat- est available information— ‘‘(1) the total benefits accrued, and ‘‘(2) the nonforfeitable pension benefits, if any, which have accrued, or the earliest date on which benefits will become nonforfeitable.’’ Page 399 TITLE 29—LABOR § 1026 Subsec. (b). Pub. L. 109–280, § 508(a)(2)(B), amended heading and text of subsec. (b) generally. Prior to amendment, text read as follows: ‘‘In no case shall a participant or beneficiary be entitled under this sec- tion to receive more than one report described in sub- section (a) during any one 12-month period.’’ Subsec. (d). Pub. L. 109–280, § 508(a)(2)(A), struck out heading and text of subsec. (d). Text read as follows: ‘‘Subsection (a) of this section shall apply to a plan to which more than one unaffiliated employer is required to contribute only to the extent provided in regulations prescribed by the Secretary in coordination with the Secretary of the Treasury.’’ 1989—Subsec. (b). Pub. L. 101–239, § 7894(b)(5), sub- stituted ‘‘12-month’’ for ‘‘12 month’’. Subsec. (c). Pub. L. 101–239, § 7891(a)(1), substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no change in text. 1984—Subsec. (c). Pub. L. 98–397 inserted at end ‘‘Such statement shall also include a notice to the participant of any benefits which are forfeitable if the participant dies before a certain date.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Pub. L. 117–328, div. T, title III, § 338(c), Dec. 29, 2022, 136 Stat. 5374, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall apply with respect to plan years beginning after December 31, 2025.’’ EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–280, title V, § 508(c), Aug. 17, 2006, 120 Stat. 952, provided that: ‘‘(1) IN GENERAL.—The amendments made by this sec- tion [amending this section and section 1132 of this title] shall apply to plan years beginning after Decem- ber 31, 2006. ‘‘(2) SPECIAL RULE FOR COLLECTIVELY BARGAINED AGREEMENTS.—In the case of a plan maintained pursu- ant to 1 or more collective bargaining agreements be- tween employee representatives and 1 or more employ- ers ratified on or before the date of the enactment of this Act [Aug. 17, 2006], paragraph (1) shall be applied to benefits pursuant to, and individuals covered by, any such agreement by substituting for ‘December 31, 2006’ the earlier of— ‘‘(A) the later of— ‘‘(i) December 31, 2007, or ‘‘(ii) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof after such date of enactment), or ‘‘(B) December 31, 2008.’’ EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 7891(a)(1) of Pub. L. 101–239 ef- fective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7891(f) of Pub. L. 101–239, set out as a note under section 1002 of this title. Amendment by section 7894(b)(5) of Pub. L. 101–239 ef- fective, except as otherwise provided, as if originally included in the provision of the Employee Retirement Income Security Act of 1974, Pub. L. 93–406, to which such amendment relates, see section 7894(i) of Pub. L. 101–239, set out as a note under section 1002 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–397 applicable to plan years beginning after Dec. 31, 1984, except as otherwise pro- vided, see sections 302 and 303 of Pub. L. 98–397, set out as a note under section 1001 of this title. IMPLEMENTATION OF 2022 AMENDMENT Pub. L. 117–328, div. T, title III, § 338(b), Dec. 29, 2022, 136 Stat. 5373, provided that: ‘‘(1) IN GENERAL.—The Secretary of Labor shall, not later than December 31, 2024, update section 2520.104b- 1(c) of title 29, Code of Federal Regulations, to provide that a plan may furnish the statements referred to in subparagraph (E) of section 105(a)(2) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1025(a)(2)(E)] by electronic delivery only if, with respect to participants who first become eligible to participate, and beneficiaries who first become eligible for benefits, after December 31, 2025, in addition to meeting the other requirements under the regulations such plan furnishes each participant or beneficiary a one-time initial notice on paper in written form, prior to the electronic delivery of any pension benefit statement, of their right to request that all documents required to be disclosed under title I of the Employee Retirement In- come Security Act of 1974 [29 U.S.C. 1001 et seq.] be fur- nished on paper in written form. ‘‘(2) OTHER GUIDANCE.—In implementing the amend- ment made by subsection (a) with respect to a plan that discloses required documents or statements elec- tronically, in accordance with applicable guidance gov- erning electronic disclosure by the Department of Labor (with the exception of section 2520.104b-1(c) of title 29, Code of Federal Regulations), the Secretary of Labor shall, not later than December 31, 2024, update such guidance to the extent necessary to ensure that— ‘‘(A) a participant or beneficiary under such a plan is permitted the opportunity to request that any dis- closure required to be delivered on paper under appli- cable guidance by the Department of Labor shall be furnished by electronic delivery; ‘‘(B) each paper statement furnished under such a plan pursuant to the amendment shall include— ‘‘(i) an explanation of how to request that all such statements, and any other document required to be disclosed under title I of the Employee Retire- ment Income Security Act of 1974, be furnished by electronic delivery; and ‘‘(ii) contact information for the plan sponsor, in- cluding a telephone number; ‘‘(C) the plan may not charge any fee to a partici- pant or beneficiary for the delivery of any paper statements; ‘‘(D) each document required to be disclosed that is furnished by electronic delivery under such a plan shall include an explanation of how to request that all such documents be furnished on paper in written form; and ‘‘(E) a plan is permitted to furnish a duplicate elec- tronic statement in any case in which the plan fur- nishes a paper pension benefit statement.’’ REGULATIONS Secretary of Labor authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations by him, see section 1031 of this title. MODEL STATEMENTS Pub. L. 109–280, title V, § 508(b), Aug. 17, 2006, 120 Stat. 951, provided that: ‘‘(1) IN GENERAL.—The Secretary of Labor shall, with- in 1 year after the date of the enactment of this section [Aug. 17, 2006], develop 1 or more model benefit state- ments that are written in a manner calculated to be understood by the average plan participant and that may be used by plan administrators in complying with the requirements of section 105 of the Employee Retire- ment Income Security Act of 1974 [29 U.S.C. 1025]. ‘‘(2) INTERIM FINAL RULES.—The Secretary of Labor may promulgate any interim final rules as the Sec- retary determines appropriate to carry out the provi- sions of this subsection.’’ § 1026. Reports made public information (a) Except as provided in subsection (b), the contents of the annual reports, statements, and