§1030a — Title 29 Labor | U.S. Code

Summary

Plans do not have to give most disclosures, notices, or plan papers to employees who are eligible but not taking part in an individual account plan, as long as two things are given: a yearly reminder about their ability to join and any document the employee asks for that they would normally get. The yearly reminder must follow regulation 2520.104b–1 (or its replacement), come during the plan’s open enrollment or reasonably before the plan year starts, tell the employee they are eligible, explain the main benefits and rights with emphasis on employer contributions and vesting, and be easy for an average person to understand. Unenrolled participant: an employee who is eligible but not enrolled, has been given the summary plan description under section 1024(b) and the initial eligibility notices required by this law or the Internal Revenue Code, and meets any other criteria the Secretary of Labor sets with the Secretary of the Treasury. Annual reminder notice: the yearly notice described above that follows regulation 2520.104b–1.

Title 29, §1030a

Labor — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of this subchapter, with respect to any individual account plan, no disclosure, notice, or other plan document (other than the notices and documents described in paragraphs (1) and (2)) shall be required to be furnished under this subchapter to any unenrolled participant if the unenrolled participant is furnished—

(1)an annual reminder notice of such participant’s eligibility to participate in such plan and any applicable election deadlines under the plan; and

(2)any document requested by such participant that the participant would be entitled to receive notwithstanding this section.

(b)For purposes of this section, the term “unenrolled participant” means an employee who—

(1)is eligible to participate in an individual account plan;

(2)has been furnished—

(A)the summary plan description pursuant to section 1024(b) of this title, and

(B)any other notices related to eligibility under the plan required to be furnished under this subchapter, or the Internal Revenue Code of 1986, in connection with such participant’s initial eligibility to participate in such plan;

(3)is not participating in such plan; and

(4)satisfies such other criteria as the Secretary of Labor may determine appropriate, as prescribed in guidance issued in consultation with the Secretary of Treasury.

(c)For purposes of this section, the term “annual reminder notice” means a notice provided in accordance with section 2520.104b–1 of title 29, Code of Federal Regulations (or any successor regulation), which—

(1)is furnished in connection with the annual open season election period with respect to the plan or, if there is no such period, is furnished within a reasonable period prior to the beginning of each plan year;

(2)notifies the unenrolled participant of—

(A)the unenrolled participant’s eligibility to participate in the plan; and

(B)the key benefits and rights under the plan, with a focus on employer contributions and vesting provisions; and

(3)provides such information in a prominent manner calculated to be understood by the average participant.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Internal Revenue Code of 1986, referred to in subsec. (b)(2)(B), is classified generally to Title 26, Internal Revenue Code.

Prior Provisions

A prior section 111 of Pub. L. 93–406 was renumbered section 112 and is classified to section 1031 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to plan years beginning after Dec. 31, 2022, see section 320(c) of Pub. L. 117–328, set out as an

Effective Date

of 2022 Amendment note under section 414 of Title 26, Internal Revenue Code.

§1030a Eliminating Unnecessary Plan Requirements Related to Unenrolled Participants

Summary

Title 29, §1030a

Notes & Related Subsidiaries

Editorial Notes

References in Text

Prior Provisions

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata