How must disclosure be made under ERISA §404(a)(5)?
Disclosure must be made to plan participants and beneficiaries who can direct their investments.
The designated investment alternative information must be disclosed using a comparative format. The DOL has issued a model chart which can be found at:
Otherwise, the regulations do not require a specific method for either the quarterly or annual disclosures. However, the regulations do specifically permit the both disclosures to be made as part of the participant benefit statement. In addition, the annual disclosure can be part of the summary plan description.
This article was last updated on August 7, 2012