PRIA, Government Policy, Made Personal

Summary

Allow individual account plans to stop sending most notices and plan papers to an eligible worker who has not signed up, as long as the worker gets two things: an annual reminder about their eligibility and any deadlines, and any document they ask for that they would be allowed to get. An "unenrolled participant" is an employee who is eligible, who already received the plan’s summary description and initial eligibility notices, who is not participating, and who meets any extra rules the Secretary of Labor (with the Secretary of the Treasury) sets. An "annual reminder notice" follows 29 C.F.R. §2520.104b–1 (or its replacement). It must be given during the plan’s open season or before the plan year, tell the worker they are eligible, explain main benefits and rights (especially employer contributions and vesting), and be easy for the average person to understand.

Title 29, §1030a

Labor, Source: USLM XML via OLRC

(a)In general

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)Unenrolled participant

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.

For purposes of this section, any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility.

(c)Annual reminder notice

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