What retirement plan information do you have a right to receive?
Federal law requires private retirement plans to give certain information to all plan members so they can learn about the rules of their retirement plan, the benefits they have earned, and their rights and obligations under their plans. Documents and notices that include this information are called disclosures. Disclosures must be written in a manner easily understood by an average participant. Disclosures must be delivered in a timely manner and by a method that ensures actual receipt.
It is important to keep plan disclosures for your records in case you later need them to understand your benefits or to prove your right to retirement benefits. It is also important to review disclosures when you receive them to be sure that the plan administrator has your correct information, such as your address.
Plan disclosures include information on:
Some disclosures will present choices for you to make, such as payment options at termination of employment or investment choices.
See our resources below for a list of important disclosures you may receive from your retirement plan.
Federal law requires retirement plans offered by private employers and unions to provide a wide variety of disclosures and information to plan participants and beneficiaries. Nonprofit organizations with 403(b) plans must also follow these federal disclosure rules.
However, governmental plans, including 403(b) plans sponsored by a government, have their own rules on what information has to be given to individuals. Churches and certain religiously affiliated non-profit organizations may also be exempt from federal disclosure rules.
Retirement plan participants receive multiple communications from their plans. Some disclosures are sent automatically, such as each year, every quarter, or when joining a plan. Other disclosures are sent when “triggering” events occur, such as termination of employment or divorce. Other plan documents and reports are only available upon request. Beneficiaries, such as spouses, can generally receive disclosure documents upon written request.
Disclosures or notices that require a decision or some action from you must be sent sufficiently in advance for you to make an informed decision and notify the plan administrator of your decision.
Disclosure of information to participants and beneficiaries is a central part of the private retirement system. It is important that retirement plans send out regular disclosures that are written in understandable language. It is also important that retirement plans send out disclosures on time and use delivery methods that make sure disclosures are always accessible and can be stored for later use.
Plan information enables participants and beneficiaries to:
Questions are raised about how many disclosures are necessary, what information should be in the disclosures and how the disclosures should be delivered. When changes to disclosure requirements are proposed, the Pension Rights Center works to ensure that any new requirements will benefit participants and beneficiaries.
Blogs & Newsletters
06/02/23
By David Brandolph I expect a 401(k)-type plan customer service call center to be a place to get impartial information about the plan and one’s account. But a recent experience with a center representative has made me question the impartiality of anyone—including such a representative–who recommends transferring plan assets to an IRA, particularly if that […]
Comments & Letters
05/15/23
PRC’s Senior Policy Consultant Norman Stein testified before the IRS and the Department of the Treasury on April 11th, urging them to take measures to protect spousal retirement rights. Read his testimony here:
Blogs & Newsletters
01/18/23
By Karen Friedman The Pension Rights Center (PRC) applauds the recent inclusion of several key consumer provisions in the Setting Every Community up for Retirement Enhancement Act (better known as SECURE 2.0), a retirement legislative package that was passed as part of the Omnibus spending legislation, which President Biden signed into law on December 29th. […]
Comments & Letters
08/11/22
The Pension Rights Center submitted comments to the IRS requesting the agency to include in its Priority Guidance Plan several items to better protect consumers, including: (a) directing plans to provide former employees who leave before retirement with a single complete statement of their earned benefits ; (b) asking the agency to rethink its position on allowing plans […]
Blogs & Newsletters
10/15/21
By Jane Smith The Pension Rights Center has long warned consumers to be aware of the fees charged by 401(k) plans. That message was reinforced by syndicated columnist Michelle Singletary in her article “Your 401(k) is pocketing fees on your investment. Many people don’t realize it.” Singletary told her readers “It’s important that you understand that the […]
PRC In the News
07/02/21|SHRM
The IRS has extended through June 30, 2022, remote notarization relief that gives retirement plans greater flexibility for participant elections that require a witness, such as 401(k) loan applications and spousal consent to changes in the distribution of survivor’s pension benefits.
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