§1059 Recordkeeping and Reporting Requirements

Summary

Employers must keep records for each employee so it’s possible to figure out what benefits they are or will be owed. The person who runs the benefit plan (the plan administrator) must give a report to any plan participant who asks for one, who leaves the job, or who has a 1-year break in service (as defined in section 1053(b)(3)(A)). Employers must give the administrator the information needed. Only one requested report is required in any 12-month period, and only one report is required for consecutive 1-year breaks. The report must match the format and details of the periodic benefit statements under section 1025(a). If more than one employer uses the same plan, each employer must give the needed information, and the plan administrator must keep the records and make the reports. Anyone who must keep records or provide information but fails to do so must pay a $10 civil penalty for each affected employee for the plan year, unless the failure was for reasonable cause.