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
07/18/24
By David Brandolph I just received a troubling letter from my 401k plan. It said I would no longer receive my plan statements and other important plan notices and disclosure documents in the mail. Instead, the plan would from now on be sending emails telling me to log in to my account on its website […]
Comments & Letters
05/22/24
The Pension Rights Center issued comments on May 22nd in response to a Request for Information from the Department of the Treasury, the IRS, the DOL, EBSA, and the PBGC on Section 319 of SECURE 2.0.
PRC In the News
03/22/24
Recordkeeping today is not your grandfather’s recordkeeping. Maybe not even your older sibling’s. So guidance and education from the Department of Labor (DOL) would be helpful in adjusting to the changes that have taken place, concludes a recently released report.
Comments & Letters
10/18/23
The Pension Rights Center submitted comments on October 18th in response to a Request for Information concerning the Paper Statements provision of Secure 2.0. Read the PRC’s response to the Request for Information here and our comments on Subsection F here.
Blogs & Newsletters
10/04/23
By David Brandolph The U.S. Labor Department should address the challenges and risks faced by employee benefit plan members due to the electronic and digital recordkeeping of their plan information, the Pension Rights Center told the ERISA Advisory Council during recent testimony. Pension Rights Center Senior Policy Counsel and Acting Legal Director Norman P. Stein, joined by […]
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