The Employee Retirement Income Security Act of 1974 (ERISA) has extensive reporting and disclosure requirements for pension, profit-sharing, stock bonus plans, and most "welfare plans" (i.e., health care, life insurance, prepaid legal services, disability insurance). Forms and documents must be filed with the Internal Revenue Service (IRS), the U.S. Department of Labor (DOL), and the Pension Benefit Guarantee Corporation (PBGC). Others go directly to plan participants. In most cases, ERISA overrides state law.
Pension Plans: New Rules, Regs, and Legislation Looming
Even as employers work diligently on their 2004 planning and budgets, new rules, regulations, and proposed legislation relating to benefits are about to make an already tough task more difficult. Here are highlights of just a few issues you should watch.
Employer Pays for Improper Distribution of SPD
An employer has been ordered to pay a life insurance beneficiary the difference between the benefits under an old version of the benefit plan and the revised version because the summary plan description (SPD) for the revised plan was not properly distributed and was never received by the employee.
Form 5500 Filing Extension Granted Due to Wildfires
Plan administrators, employers, and other entities located in areas directly affected by the recent California wildfires have extra time to file their Form 5500, Annual Return/Report of Employee Benefit Plan, and Form 5500-EZ, Annual Return of One Participant (Owners and Their Spouses) Retirement Plan.
Form 5500 Deadlines Extended for Katrina-Zone Businesses
The filing deadline for Form 5500 and Form 5500 EZ Annual Report/Return has been extended to January 6, 2006, for employee benefit plans affected by Hurricane Katrina, the U.S. Department of Labor says.
