Disclosure Obligations Of Plan Sponsors

Plan sponsors of qualified retirement plans, such as 401(k) plans, are required to provide certain information to plan participants. Although plan sponsors often rely on recordkeepers, third-party administrators or other advisors to help, it is ultimately the responsibility of the plan sponsor to make sure the disclosure requirements are met. These disclosure requirements include:

• Summary Plan Description
  The Summary Plan Description (SPD) is the most basic and comprehensive document describing the plan and its operations. Plan sponsors must provide the SPD to new participants within 90 days of the start of plan coverage. The SPD must be written in language that can be understood by the average participant and be current as of no more than 120 days from the date the plan is established. Additionally, plan sponsors must then furnish an updated SPD to all covered participants every five years if there are changes and every ten years if the SPD has not changed.