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federal register

Thursday
August 5, 1999

Part III

Department of Labor
Pension and Welfare Benefits
Administration

29 CFR Parts 2520, 2560 and 2570


Removal of Superseded Regulations
Relating to Plan Descriptions and
Summary Plan Descriptions; Proposed
Rule
Furnishing Documents to the Secretary
of Labor on Request Under ERISA
Section 104(a)(6) and Assessment of Civil
Penalties Under ERISA Section 502(c)(6);
Proposed Rule
42792 Federal Register / Vol. 64, No. 150 / Thursday, August 5, 1999 / Proposed Rules

DEPARTMENT OF LABOR the requirements that plan These sections require plan
administrators file SPDs, SMMs, and administrators to file a plan description
Pension and Welfare Benefits plan descriptions with the Department.1 with the Department in accordance with
Administration TRA ’97 also amended section 104(b) of §§ 101(b)(2) and 104(a)(1)(B) of ERISA.3
ERISA to eliminate the requirement that They were superseded by paragraphs (a)
29 CFR Parts 2520 and 2560 plan administrators furnish plan and (c) of § 1503 of TRA ’97, which
RIN 1210–AA66 descriptions to participants and eliminated §§ 101(b)(2) and 104(a)(1)(B)
beneficiaries. These statutory of ERISA.
Removal of Superseded Regulations amendments superseded, in whole or in This proposed rule would remove and
Relating to Plan Descriptions and part, the Department’s regulations that reserve § 2520.104a–3. This section
Summary Plan Descriptions, and Other implemented the SPD, SMM, and plan implements sections 101(b)(1) and
Technical Conforming Amendments description filing requirements. This 104(a)(1)(C) of ERISA, which require
proposed rule would remove those plan administrators to file with the
AGENCY: Pension and Welfare Benefits Department a copy of any SPD that is
superseded regulations from the CFR.2
Administration, Department of Labor. required to be furnished to participants
This proposed rule also would make
ACTION: Notice of Proposed Rulemaking. covered under the plan and
several technical conforming
SUMMARY: This document sets forth a amendments to reflect the fact that beneficiaries receiving benefits under
proposed rule that would remove regulatory relief from certain plan the plan. Section 2520.104a–3 was
certain provisions from the Code of description, SPD, and SMM superseded by paragraphs (a) and (c) of
Federal Regulations (CFR) that were requirements is no longer needed in section 1503 of TRA ’97, which
superseded, in whole or in part, by light of TRA ’97 and to correct affected eliminated sections 101(b)(1) and
amendments of the Employee regulatory and statutory cross-references 104(a)(1)(C) of ERISA.
Retirement Income Security Act of 1974 in parts 2520 and 2560 of Chapter XXV This proposed rule would remove and
(ERISA) enacted as part of the Taxpayer of Title 29 of the CFR. A chart reserve §§ 2520.104a–4 and 2520.104a–
Relief Act of 1997 (TRA ’97). These TRA identifying each regulation that would 7. These sections implement
’97 amendments eliminated the be changed by this proposed rule is §§ 101(b)(3), 102(a)(2), and 104(a)(1)(D)
requirements that plan administrators printed below. of ERISA, which require plan
file summary plan descriptions (SPDs) administrators to file with the
2. Removal of Superseded Regulations Department a copy of summaries of
and summaries of material
modifications (SMMs) with the This proposed rule would remove, in material modifications in the terms of
Department of Labor (Department). The whole or in part, the following the plan and summaries of any changes
amendments also eliminated all superseded regulations from 29 CFR in the information required to be in the
requirements pertaining to plan part 2520, which pertain to reporting SPD. Sections 2520.104a–4 and
descriptions. In addition to removing and disclosure under ERISA. This 2520.104a–7 were superseded by
superseded regulations from the CFR, proposed rule also would reserve paragraphs (a) and (c) of § 1503 of TRA
this proposed rule would make certain removed sections of the CFR to ’97, which eliminated §§ 101(b)(3),
miscellaneous technical amendments to preserve the continuity of codification 102(a)(2), and 104(a)(1)(D) of ERISA.
in the CFR.
the CFR designed to correct affected B. Regulations Superseded in Part
cross-references. A. Regulations Superseded in Whole This proposed rule would amend
DATES: Written comments concerning This proposed rule would remove and § 2520.104–20 to reflect the fact that
the proposed regulation must be reserve §§ 2520.102–1 and 2520.104a–2. certain of the reporting relief granted by
received by October 4, 1999. that regulation is no longer needed in
ADDRESSES: Written comments 1 Prior to 1979, the administrator of an employee
light of TRA ’97. Specifically,
(preferably three copies) should be sent benefit plan subject to the provisions of Part 1 of
Title I of ERISA was required to file with the
§ 2520.104–20 exempts certain
to: Office of Regulations and Department a plan description (Form EBS–1) to unfunded or insured welfare plans with
Interpretations, Room N–5669, Pension satisfy the statutory filing requirements of section fewer than 100 participants from, among
and Welfare Benefits Administration, 104(a) and 29 CFR 2520.104a–2. See 41 FR 16957 others, the requirements to file plan
U.S. Department of Labor, 200 (April 23, 1976). In 1979, the Department amended
29 CFR 2520.104a–2 (44 FR 31639 (June 1, 1979)), descriptions, SPDs, and SMMs with the
Constitution Avenue, NW, Washington, to provide that the administrator of an employee Department. Inasmuch as plan
DC 20210; Attention: Proposed SPD/ benefit plan would satisfy the plan description descriptions, SPDs, and SMMs are no
Plan Description Regulations. All filing requirements of section 104(a)(1)(B) by filing
with the Department a SPD and an updated SPD in
longer required to be filed under ERISA
submissions will be open to public accordance with section 104(a)(1)(C) and the as amended by TRA ’97, this proposed
inspection at the Public Documents regulations thereunder. rule would amend § 2520.104–20(a) to
Room, Pension and Welfare Benefits 2 Under a separate notice, the Department will
remove the provisions that grant relief
Administration, Room N–5638, 200 promulgate proposed regulations to implement new
sections 502(c)(6) and 104(a)(6) of ERISA. Section
from such filing requirements. The
Constitution Avenue, NW, Washington, 502(c)(6) provides that if, within 30 days of a amendments made by this proposed
DC. request by the Department to a plan administrator rule would not otherwise change the
FOR FURTHER INFORMATION CONTACT: for documents under section 104(a)(6), the plan relief available in § 2520.104–20.
administrator fails to furnish the material requested
Jeffrey J. Turner, Office of Regulations to the Department, the Department may assess a
This proposed rule would similarly
and Interpretations, Pension and civil penalty against the plan administrator of up amend § 2520.104–21 to reflect the fact
Welfare Benefits Administration, U.S. to $100 a day from the date of such failure, but in that the SPD, SMM, and plan
Department of Labor, (202) 219–8671 no event in excess of $1,000 per request. Section description filing relief granted by that
104(a)(6) provides that the administrator of any
(not a toll-free number). employee benefit plan must furnish to the regulation is no longer needed in light
SUPPLEMENTARY INFORMATION: Department, upon request, any documents relating of the TRA ’97 elimination of those
to the employee benefit plan, including but not filing requirements. Specifically,
1. Overview limited to, the latest SPD, and the bargaining
§ 2520.104–21 provides a limited
agreement, trust agreement, contract, or other
TRA ’97 amended sections 101(b), instrument under which the plan is established or
102, and 104(a)(1) of ERISA to eliminate operated. 3 See supra note 1.
Federal Register / Vol. 64, No. 150 / Thursday, August 5, 1999 / Proposed Rules 42793

exemption from, among others, the beneficiary. This proposed rule would to change the relief available under
requirements to file SPDs, SMMs, and amend §§ 2520.104–20(a)(2) and (3) and these sections.
plan descriptions with the Department 2520.104–21(a)(1) and (2) by removing
3. Technical Conforming Amendments
for welfare benefit plans that cover the provisions on disclosing plan
fewer than 100 participants at the descriptions because plan descriptions This proposal also would make
beginning of the plan year, are part of are nolonger required to be furnished or technical changes that are needed to
a group insurance arrangement, and that made available under ERISA as conform certain cross references in the
otherwise satisfy the conditions of amended by TRA ’97. CFR to sections of ERISA as amended by
§ 2520.104–21(b). This proposed rule This proposed rule would amend TRA ’97. For example, § 2520.104a–5
would amend § 2520.104–21(a) by §§ 2520.104–26 and 2520.104–27 to refers to section 104(a)(1)(A) of ERISA
removing the provisions on SPDs, reflect the fact that the need for relief as the authority for the requirement to
SMMs, and plan descriptions because under ERISA from the requirement to file annual reports with the Department.
these documents are no longer required file plan descriptions, SPDs, and SMMs After TRA ’97, the correct citation is to
to be filed under ERISA as amended by was eliminated by TRA ’97. These § 104(a)(1) of ERISA. Similar technical
TRA ’97. The amendments made by this regulations provide certain unfunded changes are also being made to conform
proposed rule would not otherwise dues financed welfare and pension internal CFR cross references.
change the relief available in plans maintained by employee
4. Effective Date
§ 2520.104–21.4 organizations with a limited exemption
This proposed rule would further from, among others, the requirement to This regulation is proposed to be
amend §§ 2520.104–20 and 2520.104–21 file plan descriptions and a simplified effective 60 days after publication of a
to reflect the fact that the need for relief option for complying with the filing and final rule in the Federal Register. If
under ERISA from the requirement to disclosure requirements applicable to adopted, the proposed amendments
disclose plan descriptions was SPDs. This proposed rule would amend implementing TRA ’97 would be
eliminated by TRA ’97. These section §§ 2520.104–26 and 2520.104–27 by applicable as of the August 5, 1997,
exempt eligible welfare plans from the removing the provisions on plan effective date of section 1503 of TRA
requirement to: (1) Furnish upon descriptions and would further amend ’97.
written request of any participant or §§ 2520.104–26 and 2520.104–27 to
5. Quick Reference Chart
beneficiary a copy of the plan remove the simplified option provisions
description, and (2) make copies of the for filing SPDs because plan The chart below lists each section of
plan description available in the descriptions and SPDs are no longer 29 CFR parts 2520 and 2560 that would
principle office of the administrator and required to be filed with the Department be affected by this proposed rule and
such other places as may be necessary under ERISA as amended by TRA ’97. includes a brief description of the
for examination by any participant or The proposal is not otherwise intended proposed change.

QUICK REFERENCE CHART


CFR section(s) Remove Add Reason(s)

2520.102–1 .................................... The whole section ........................ ‘‘Reserved’’ ................................... All ‘‘plan description’’ require-
ments eliminated from ERISA.
2520.102–4 .................................... The last sentence ......................... Nothing ......................................... SPD filing requirement eliminated.
2520.103–1(a) ................................ ‘‘section 104(a)(1)(A)’’ .................. ‘‘section 104(a)(1)’’ ....................... Cross reference correction.
2520.103–5(a), (c)(1)(i), (c)(1)(iii), ‘‘section 104(a)(1)(A)’’ .................. ‘‘section 104(a)(1)’’ ....................... Cross reference correction.
(c)(2)(ii), (c)(2)(iii), and (c)(3).
2520.103–12(a) .............................. ‘‘section 104(a)(1)(A)’’ .................. ‘‘section 104(a)(1)’’ ....................... Cross reference correction.
2520.104–4(a) ................................ Last sentence ............................... Nothing ......................................... SPD filing requirement eliminated.
2520.104–20(a) (introductory text) ‘‘any of the following documents: Nothing ......................................... All ‘‘plan description’’ require-
Plan description, copy of sum- ments eliminated from ERISA,
mary plan description, descrip- SPD filing requirement elimi-
tion of material modification in nated, and SMM filing require-
the terms of a plan or change ment eliminated.
in the information required to be
included in the plan descrip-
tion,’’.
2520.104–20(a)(2) ......................... ‘‘plan description,’’ ........................ Nothing ......................................... All ‘‘plan description’’ require-
ments eliminated from ERISA.
2520.104–20(a)(3) ......................... ‘‘plan description and’’ .................. Nothing ......................................... All ‘‘plan description’’ require-
ments eliminated from ERISA.
2520.104–20(c) .............................. ‘‘(section 104(a)(1))’’ ..................... ‘‘(section 104(a)(6))’’ ..................... Requirement to furnish docu-
ments to the Department upon
request—moved to different
paragraph of ERISA section
104.

4 See 63 FR 68370, 68388 (Dec. 10, 1998) descriptions, SPDs, and SMMs in § 2520.104–21– (d)(3) as part of proposed amendments to annual
(eliminating references to requirements to file plan reporting regulations).
42794 Federal Register / Vol. 64, No. 150 / Thursday, August 5, 1999 / Proposed Rules

QUICK REFERENCE CHART—Continued


CFR section(s) Remove Add Reason(s)

2520.104–21(a) (introductory text) ‘‘with the Secretary any of the fol- After the word file, add: ‘‘with the All ‘‘plan description’’ require-
lowing documents: Plan de- Secretary a terminal report or ments eliminated from ERISA,
scription, copy of summary plan furnish upon written request of SPD filing requirement elimi-
description, description of mate- any participant or beneficiary a nated, and SMM filing require-
rial modification in the terms of copy of any terminal report as ment eliminated.
a plan or change in the infor- required by section 104(b)(4) of
mation required to be included the Act.’’.
in the plan description, and ter-
minal report. In addition, the ad-
ministrator of a plan exempted
under this section:’’.
2520.104–21(a)(1) ......................... All of (a)(1) .................................... Nothing ......................................... All ‘‘plan description’’ require-
ments eliminated from ERISA.
2520.104–21(a)(2) ......................... All of (a)(2) .................................... Nothing ......................................... All ‘‘plan description’’ require-
ments eliminated from ERISA.
2520.104–21(c) (second parenthet- ‘‘section 104(a)(1)(A)’’ .................. ‘‘section 104(a)(1)’’ ....................... Cross reference correction.
ical).
2520.104–21(c) (third parenthet- ‘‘section 104(a)(1)’’ ....................... ‘‘section 104(a)(6)’’ ....................... Requirement to furnish docu-
ical). ments to the Department upon
request—moved to different
paragraph of ERISA section
104.
2520.104–23(b)(2) ......................... ‘‘104(a)(1)’’ .................................... ‘‘104(a)(6)’’ .................................... Requirement to furnish docu-
ments to the Department upon
request—moved to different
paragraph of ERISA section
104.
2520.104–24(b) .............................. ‘‘104(a)(1)’’ .................................... 104(a)(6)’’ ..................................... Requirement to furnish docu-
ments to the Department upon
request—moved to different
paragraph of ERISA section
104.
2520.104–25 .................................. ‘‘104(a)(1)’’ .................................... ‘‘104(a)(6)’’ .................................... Requirement to furnish docu-
ments to the Department upon
request—moved to different
paragraph of ERISA section
104.
2520.104–26(a) .............................. All of paragraph (a), (a)(1), (a)(2), New paragraph (a), (a)(1), and Paragraph (a) needed to be re-
and (a)(3). (a)(2). structured to reflect the fact that
all ‘‘plan description’’ require-
ments and the SPD filing re-
quirement were eliminated from
ERISA.
2520.104–27(a) .............................. All of paragraph (a), (a)(1), (a)(2), New paragraph (a), (a)(1), and Paragraph (a) needed to be re-
and (a)(3). (a)(2). structured to reflect the fact that
all ‘‘plan description’’ require-
ments and the SPD filing re-
quirement were eliminated from
ERISA.
2520.104–41(b) .............................. ‘‘section 104(a)(1)(A)’’ .................. ‘‘section 104(a)(1)’’ ....................... Cross reference correction.
2520.104–43(a) .............................. ‘‘section 104(a)(1)(A)’’ .................. ‘‘section 104(a)(1)’’ ....................... Cross reference correction.
2520.104–44(d) .............................. ‘‘section 104(a)(1)(A)’’ .................. ‘‘section 104(a)(1)’’ ....................... Cross reference correction.
2520.104a–2 .................................. Whole section ............................... ‘‘Reserved’’ ................................... All ‘‘plan description’’ require-
ments eliminated from ERISA.
2520.104a–3 .................................. Whole section ............................... ‘‘Reserved’’ ................................... SPD filing requirement eliminated.
2520.104a–4 .................................. Whole section ............................... ‘‘Reserved’’ ................................... SMM filing requirement elimi-
nated.
2520.104a–5(a) .............................. ‘‘section 104(a)(1)(A)’’ .................. ‘‘section 104(a)(1)’’ ....................... Cross reference correction.
2520.104a–5(a)(1) ......................... All text in paragraph (a)(1) ........... ‘‘Reserved’’ ................................... Provision obsolete.
2520.104a–7 .................................. Whole section ............................... ‘‘Reserved’’ ................................... SMM filing requirement elimi-
nated.
2520.104b–1(b)(3) ......................... ‘‘plan description’’ ......................... Nothing ......................................... All ‘‘plan description’’ require-
ments eliminated from ERISA.
2520.104b–3(f) ............................... All of para. (f) ................................ Nothing ......................................... Part of paragraph (f) was super-
seded by TRA ’97 and the rest
of the paragraph has become
obsolete as a result of the re-
moval of § 2520.104a–3 by this
rule.
Federal Register / Vol. 64, No. 150 / Thursday, August 5, 1999 / Proposed Rules 42795

QUICK REFERENCE CHART—Continued


CFR section(s) Remove Add Reason(s)

2520.104b–3(g) .............................. All of para. (g) ............................... Nothing ......................................... Paragraph (g) was superseded by
TRA ’97 and as a result of the
removal of § 2520.104a–3 by
this rule.
2560.502c–2(a) .............................. ‘‘section 101(b)(4)’’ ....................... ‘‘section 101(b)(1)’’ ....................... Cross reference correction.

Executive Order 12866 Statement correct cross-references affected by Statutory Authority


Under Executive Order 12866, the amendments to ERISA enacted as part of This proposed rule is promulgated
Department must determine whether the TRA ’97, the proposed rule would have pursuant to the authority contained in
regulatory action is ‘‘significant’’ and no impact, independent of the statutory section 505 of ERISA (Pub. L. 93–406,
therefore subject to the requirements of change eliminating the SPD and SMM 88 Stat. 894, 29 U.S.C. 1135) and
the Executive Order and subject to filing requirements, on small plans. As sections 101(b) and 104(a)(1) of ERISA,
review by the Office of Management and a result, the undersigned certifies that as amended, and under the Secretary of
Budget (OMB). Under section 3(f), the this proposed rule, if promulgated, Labor’s Order No. 1–87, 52 FR 13139,
order defines a ‘‘significant regulatory would not have a significant impact on April 21, 1987.
action’’ as an action that is likely to a substantial number of small entities.
result in a rule: (1) Having an annual List of Subjects
The factual basis for this certification is
effect on the economy of $100 million the same regardless of whether one uses 29 CFR Part 2520
or more, or adversely and materially the definition of small entity found in Employee benefit plans, Employee
affecting a sector of the economy, regulations issued by the Small Retirement Income Security Act, Group
productivity, competition, jobs, the Business Administration (13 CFR health plans, Pension plans, Welfare
environment, public health or safety, or 121.201) or one defines small entity, on benefit plans.
State, local or tribal governments or
the basis of section 104(a)(2) of ERISA, 29 CFR Part 2560
communities (also referred to as
as an employee benefit plan with fewer
‘‘economically significant’’); (2) creating Claims, Employee benefit plans,
serious inconsistency or otherwise than 100 participants.
Employee Retirement Income Security
interfering with an action taken or Small Business Regulatory Enforcement Act, Law enforcement, Pensions.
planned by another agency; (3) Fairness Act For the reasons set forth above, parts
materially altering the budgetary 2520 and 2560 of Chapter XXV of Title
impacts of entitlement grants, user fees, The proposed rule being issued here
29 of the Code of Federal Regulations
or loan programs or the rights and is subject to the provisions of the Small are amended as follows:
obligations of recipients thereof; or (4) Business Regulatory Enforcement
raising novel legal or policy issues Fairness Act of 1996 (5 U.S.C. 801 et PART 2520—RULES AND
arising out of legal mandates, the seq.) and, if finalized, will be REGULATIONS FOR REPORTING AND
President’s priorities, or the principles transmitted to Congress and the DISCLOSURE
set forth in the Executive Order. Comptroller General for review. The
Pursuant to the terms of the Executive 1. The authority citation for Part 2520
rule is not a ‘‘major rule’’ as that term
Order, it has been determined that this continues to read as follows:
is defined in 5 U.S.C. 804, because it is
action is not significant within the not likely to result in: (1) An annual Authority: Secs. 101, 102, 103, 104, 105,
meaning of the Executive Order. 109, 110, 111 (b)(2), 111(c), and 505, Pub. L.
effect on the economy of $100 million 93–406, 88 Stat. 840–52 and 894 (29 U.S.C.
Paperwork Reduction Act or more; (2) a major increase in costs or 1021–1025, 1029–31, and 1135); Secretary of
The rule being issued here is not prices for consumers, individual Labor’s Order No. 27–74, 13–76, 1–87, and
subject to the requirements of the industries, or federal, State, or local Labor Management Services Administration
Paperwork Reduction Act of 1995 (44 government agencies, or geographic Order 2–6.
regions; or (3) significant adverse effects Sections 2520.102–3, 2520.104b–1 and
U.S.C. 3501 et seq.) because it does not 2520.104b–3 also are issued under sec.
contain an ‘‘information collection on competition, employment, 101(a), (c) and (g)(4) of Pub. L. 104–191, 110
request’’ as defined in 44 U.S.C. 3502(3). investment, productivity, innovation, or Stat. 1936, 1939, 1951 and 1955 and, sec. 603
on the ability of United States-based of Pub. L. 104–204, 110 Stat. 2935 (29 U.S.C.
Regulatory Flexibility Act
enterprises to compete with foreign- 1185 and 1191(c)).
The Regulatory Flexibility Act, 5 based enterprises in domestic or export 2. Section 2520.102–1 is removed and
U.S.C. 601 et seq., requires each Federal markets. reserved.
agency to perform an initial regulatory 3. Revise section 2520.102–4 to read
flexibility analysis for all proposed rules Unfunded Mandates Reform Act
as follows:
unless the head of the agency certifies
that the rule will not, if promulgated, For purposes of the Unfunded § 2520.102–4 Option for different summary
have a significant economic impact on Mandates Reform Act of 1995 (Pub. L. plan descriptions.
a substantial number of small entities. 104–4), as well as Executive Order In some cases an employee benefit
Small entities include small businesses, 12875, this proposed rule does not plan may provide different benefits for
organizations, and governmental include any Federal mandate that may various classes of participants and
jurisdictions. Because this proposed result in expenditures by State, local, or beneficiaries. For example, a plan
rule would remove certain provisions of tribal governments, and will not impose amendment altering benefits may apply
the CFR and make a number of technical an annual burden of $100 million or to only those participants who are
amendments to the CFR designed to more on the private sector. employees of an employer when the
42796 Federal Register / Vol. 64, No. 150 / Thursday, August 5, 1999 / Proposed Rules

amendment is adopted and to also retain eligibility for certain benefits 9. Amend § 2520.104–21 by revising
employees who later become under the terms of a former plan which paragraphs (a) and (c) to read as follows:
participants, but not to participants who has been merged into the successor.
no longer are employees when the This section is applicable only to plan § 2520.104–21 Limited exemption for
certain group insurance arrangements.
amendment is adopted. (See mergers which occur after the issuance
§ 2520.104b–4). Similarly, a plan may by the successor plan of the initial (a) Scope. Under the authority of
provide for different benefits for summary plan description under the section 104(a)(3) of the Act, the
participants employed at different Act. Under the alternative method, the administrator of any employee welfare
plants of the employer, or for different plan administrator of the successor plan benefit plan which covers fewer than
classes of participants in the same plant. is not required to describe relevant 100 participants at the beginning of the
In such cases the plan administrator provisions of merged plans in summary plan year and which meets the
may fulfill the requirement to furnish a plan descriptions of the successor plan requirements of paragraph (b) of this
summary plan description to furnished after the merger to that class section is exempted from certain
participants covered under the plan and of participants and beneficiaries still reporting and disclosure provisions of
beneficiaries receiving benefits under affected by the terms of the merged the Act. Specifically, the administrator
the plan by furnishing to each member plans. of such plan is not required to file with
of each class of participants and the Secretary a terminal report or
* * * * * furnish upon written request of any
beneficiaries a copy of a summary plan 8. Revise the introductory text in
description appropriate to that class. participant or beneficiary a copy of any
paragraph (a) and paragraphs (a)(2),
Each summary plan description so terminal report as required by section
(a)(3), and (c) of § 2520.104–20 to read
prepared shall follow the style and 104(b)(4) of the Act.
as follows:
format prescribed in § 2520.102–2, and * * * * *
shall contain all information which is § 2520.104–20 Limited exemption for (c) Limitations. This exemption does
required to be contained in the certain small welfare plans. not exempt the administrator of an
summary plan description under (a) Scope. Under the authority of employee benefit plan from any other
§ 2520.102–3. It may omit information section 104(a)(3) of the Act, the requirement of title I of the Act,
which is not applicable to the class of administrator of any employee welfare including the provisions which require
participants or beneficiaries to which it benefit plan which covers fewer than that plan administrators furnish copies
is furnished. It should also clearly 100 participants at the beginning of the of the summary plan description to
identify on the first page of the text the plan year and which meets the participants and beneficiaries (section
class of participants and beneficiaries requirements of paragraph (b) of this 104(b)(1)), file an annual report with the
for which it has been prepared and the section is exempted from certain Secretary of Labor (section 104(a)(1))
plan’s coverage of other classes. If the reporting and disclosure provisions of and furnish certain documents to the
classes which the employee benefit plan the Act. Specifically, the administrator Secretary of Labor upon request (section
covers are too numerous to be listed of such plan is not required to file with 104(a)(6)), and authorize the Secretary
adequately on the first page of the text the Secretary an annual or terminal of Labor to collect information and data
of the summary plan description, they report. In addition, the administrator of from employee benefit plans for
may be listed elsewhere in the text so a plan exempted under this section— research and analysis (section 513).
long as the first page of the text contains * * * * * * * * * *
a reference to the page or pages in the (2) Is not required to furnish upon 10. Section 2520.104–23 is amended
text which contain this information. written request of any participant or by removing from paragraph (b)(2) the
4. Section 2520.103–1(a), introductory beneficiary a copy of the annual report term ‘‘104(a)(1)’’ and adding, in its
text, is amended by removing the term and any terminal report, as required by place, the term ‘‘104(a)(6)’’.
‘‘section 104(a)(1)(A)’’ and adding, in its section 104(b)(4) of the Act; 11. Section 2520.104–24 is amended
place, the term ‘‘section 104(a)(1)’’. (3) Is not required to make copies of by removing from paragraph (b) the term
5. Section 2520.103–5 is amended by the annual report available for ‘‘104(a)(1)’’ and adding, in its place, the
removing the term ‘‘section examination by any participant or term ‘‘104(a)(6)’’.
104(a)(1)(A)’’ from paragraphs (a), beneficiary in the principal office of the 12. Section 2520.104–25 is amended
introductory text, (c)(1)(i), (c)(1)(iii), administrator and such other places as by removing the term ‘‘104(a)(1)’’ and
(c)(2)(ii), (c)(2)(iii) and (c)(3) and may be necessary, as required by section adding, in its place, the term
adding, in their place, the term ‘‘section 104(b)(2) of the Act. ‘‘104(a)(6)’’.
104(a)(1)’’. (b) * * * 13. In § 2520.104–26, revise paragraph
6. Section 2520.103–12 is amended by (c) Limitations. This exemption does (a) to read as follows:
removing from paragraph (a) the term not exempt the administrator of an § 2520.104–26 Limited exemption for
‘‘section 104(a)(1)(A)’’ and adding, in its employee benefit plan from any other certain unfunded dues financed welfare
place, the term ‘‘section 104(a)(1)’’. requirement of Title I of the Act, plans maintained by employee
7. Revise paragraph (a) of § 2520.104– including the provisions which require organizations.
4 to read as follows: that plan administrators furnish copies (a) Scope. Under the authority of
§ 2520.104–4 Alternative method of of the summary plan description to section 104(a)(3) of the Act, a welfare
compliance for certain successor pension participants and beneficiaries (section benefit plan that meets the requirements
plans. 104(b)(1)) and furnish certain of paragraph (b) of this section is
(a) General. Under the authority of documents to the Secretary of Labor exempted from the provisions of the Act
section 110 of the Act, this section sets upon request (section 104(a)(6)), and that require filing with the Secretary an
forth an alternative method of which authorize the Secretary of Labor annual report and furnishing a summary
compliance for certain successor to collect information and data from annual report to participants and
pension plans in which some employee benefit plans for research and beneficiaries. Such plans may use a
participants and beneficiaries not only analysis (section 513). simplified method of reporting and
have their rights set out in the plan, but * * * * * disclosure to comply with the
Federal Register / Vol. 64, No. 150 / Thursday, August 5, 1999 / Proposed Rules 42797

requirement to furnish a summary plan 18. Section 2520.104a–2 is removed ACTION: Notice of proposed rulemaking.
description to participants and and reserved.
beneficiaries, as follows: 19. Section 2520.104a–3 is removed SUMMARY: This document contains a
(1) In lieu of filing an annual report and reserved. proposed rulemaking under the
with the Secretary or distributing a 20. Section 2520.104a–4 is removed Employee Retirement Income Security
summary annual report, a filing is made and reserved. Act of 1974 (ERISA) that would
of Report Form LM–2 or LM–3, 21. Section 2520.104a–5 is amended implement certain amendments to
pursuant to the LMRDA and regulations by removing the term ‘‘section ERISA added as part of the Taxpayer
thereunder, and 104(a)(1)(A)’’ and adding, in its place, Relief Act of 1997. Specifically, the
(2) In lieu of a summary plan the term ‘‘section 104(a)(1)’’. proposed rule would implement the
description, the employee organization 22. Section 2520.104a–5 is amended requirement that the administrator of
constitution or by-laws may be by removing and reserving paragraph any employee benefit plan subject to
furnished in accordance with (a)(1). Part 1 of Title I of ERISA furnish to the
§ 2520.104b–2 to participants and 23. Section 2520.104a–7 is removed Department, on request, any documents
beneficiaries together with any and reserved. relating to the employee benefit plan.
supplement to such document necessary 24. Section 2520.104b–1 is amended The proposed rule also would establish
to meet the requirements of by removing from the second sentence procedures relating to the assessment of
§§ 2520.102–2 and 2520.102–3. of paragraph (b)(3) the term ‘‘plan civil penalties for failures or refusals by
description,’’. administrators to furnish requested
* * * * * 25. In § 2520.104b–3 paragraphs (f) documents and procedures relating to
14. In § 2520.104–27, revise paragraph and (g) are removed and reserved. administrative hearings in connection
(a) to read as follows: with the assessment of such civil
PART 2560—RULES AND penalties.
§ 2520.104–27 Alternative method of
REGULATIONS FOR ADMINISTRATION
compliance for certain unfunded dues DATES: Written comments concerning
financed pension plans maintained by AND ENFORCEMENT
the proposed regulation must be
employee organizations. 26. The authority citation for part received by October 4, 1999.
(a) Scope. Under the authority of 2560 continues to read as follows: ADDRESSES: Written comments
section 110 of the Act, a pension benefit Authority: Secs. 502, 505 of ERISA, 29 (preferably three copies) should be sent
plan that meets the requirements of U.S.C. 1132, 1135, and Secretary’s Order 1– to the Office of Regulations and
paragraph (b) of this section is exempted 87, 52 FR 13139 (April 21, 1987). Interpretations, Pension and Welfare
from the provisions of the Act that Benefits Administration, U.S.
Section 2560.502–1 also issued under sec.
require filing with the Secretary an 502(b)(2), 29 U.S.C. 1132(b)(2). Department of Labor, Rm. N–5669, 200
annual report and furnishing a summary Section 2560.502i–1 also issued under sec. Constitution Avenue, NW, Washington
annual report to participants and 502(i), 29 U.S.C. 1132(i). DC, 20210, Attention: ‘‘ERISA 502(c)(6)
beneficiaries. Such plans may use a Section 2560.503–1 also issued under sec. Project.’’ All submissions will be
simplified method of reporting and 503, 29 U.S.C. 1133. available for public inspection in the
disclosure to comply with the Public Documents Room of the Pension
§ 2560.502c–21 [Amended]
requirement to furnish a summary plan and Welfare Benefits Administration,
description to participants and 27. Section 2560.502c–2 is amended U.S. Department of Labor, Room N–
beneficiaries, as follows: by removing from paragraph (a)(1) and 5638, 200 Constitution Ave, NW,
(1) In lieu of filing an annual report (a)(2) the term ‘‘section 101(b)(4)’’ each Washington, DC 20210.
with the Secretary or distributing a time it appears and adding, in its place,
FOR FURTHER INFORMATION CONTACT:
summary annual report, a filing is made the term ‘‘section 101(b)(1)’’.
Jeffrey J. Turner, Office of Regulations
of Report Form LM–2 or LM–3, Signed at Washington, D.C., this 28th day and Interpretations, Pension and
pursuant to the LMRDA and regulations of July 1999. Welfare Benefits Administration, (202)
thereunder, and Richard M. McGahey, 219–8671, or Paul D. Mannina, Plan
(2) In lieu of a summary plan Assistant Secretary, Pension and Welfare Benefits Security Division, Office of the
description, the employee organization Benefits Administration, Department of Solicitor, (202) 219–9141 (not toll-free
constitution or by-laws may be Labor. numbers).
furnished in accordance with [FR Doc. 99–19860 Filed 8–4–99; 8:45 am]
SUPPLEMENTARY INFORMATION:
§ 2520.104b–2 to participants and BILLING CODE 4510–29–P
beneficiaries together with any Part I—Background
supplement to such document necessary The Taxpayer Relief Act of 1997 (TRA
to meet the requirements of DEPARTMENT OF LABOR ’97) eliminated the requirement under
§§ 2520.102–2 and 2520.102–3. ERISA that employee benefit plan
Pension and Welfare Benefits
* * * * * administrators file with the Department
Administration
15. Section 2520.104–41 is amended copies of the summary plan descriptions
by removing from paragraph (b) the term 29 CFR Parts 2520, 2560 and 2570 (SPDs) and summaries of material plan
‘‘section 104(a)(1)(A)’’ and adding, in its modifications (SMMs) that are required
place, the term ‘‘section 104(a)(1)’’. RIN 1210–AA67 and RIN 1210–AA68 to be furnished to plan participants and
16. Section 2520.104–43 is amended beneficiaries. TRA ’97 added paragraph
Furnishing Documents to the
by removing from paragraph (a) the term (6) to section 104(a) of ERISA which
Secretary of Labor on Request Under
‘‘section 104(a)(1)(A)’’ and adding, in its provides that the administrator of any
ERISA Section 104(a)(6) and
place, ‘‘section 104(a)(1)’’. employee benefit plan subject to Part 1
Assessment of Civil Penalties Under
17. Section 2520.104–44 is amended of Title I of ERISA is required to furnish
ERISA Section 502(c)(6)
by removing from paragraph (d) the to the Department, on request, any
term ‘‘section 104(a)(1)(A)’’ and adding, AGENCY:Pension and Welfare Benefits documents relating to the employee
in its place, ‘‘section 104(a)(1)’’. Administration, Department of Labor. benefit plan, including but not limited

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