29 U.S.C. § 1030a — Eliminating unnecessary plan requirements related to unenrolled participants

submitted 4 years ago by Pub. L. 93-406 to r/title-29-LABOR · 364 words · no verdicts yet

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For an individual account plan, an unenrolled participant generally must receive only an annual reminder and requested documents. The section defines both “unenrolled participant” and “annual reminder notice.”

(a) For an individual account plan, despite other provisions of this subchapter, the plan need not provide an unenrolled participant with disclosures, notices, or other plan documents except: (1) an annual reminder of eligibility and applicable election deadlines; and (2) any document the participant requests and would otherwise be entitled to receive.

(b) “Unenrolled participant” means an employee who: (1) is eligible for an individual account plan; (2) received the summary plan description required by section 1024(b) and other eligibility notices required under this subchapter or the Internal Revenue Code of 1986 when first eligible; (3) is not participating; and (4) meets other criteria the Secretary of Labor sets in guidance issued after consulting the Secretary of the Treasury. Eligibility after a period of ineligibility counts as initial eligibility.

(c) “Annual reminder notice” means a notice provided under section 2520.104b–1 of title 29, Code of Federal Regulations, or a successor regulation. It must be given during the plan’s annual open-season election period, or, if there is none, within a reasonable time before each plan year. It must prominently tell the participant about eligibility, key benefits and rights with emphasis on employer contributions and vesting, in a way the average participant can understand.

the actual law source: uscode.house.gov ↗public domain

(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.

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.

Source credit: (Pub. L. 93–406, title I, § 111, as added Pub. L. 117–328, div. T, title III, § 320(a)(1), Dec. 29, 2022, 136 Stat. 5354.)

history & why it existsrecord from the source credit

2022Enacted · Pub. L. 93-406 · 136 Stat. 5354

A history note hasn’t been published yet. The record shows enactment by Pub. L. 93-406 on 2022-12-29.

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