(a) Scope. Under the authority of section 104(a)(3) of the Act, a
welfare benefit plan that meets the requirements of paragraph (b) of
this section is exempted from the provisions of the Act that require
filing with the Secretary an annual report and furnishing a summary
annual report to participants and beneficiaries. Such plans may use a
simplified method of reporting and disclosure to comply with the
requirement to furnish a summary plan description to participants and
beneficiaries, as follows:
(1) In lieu of filing an annual report with the Secretary or
distributing a summary annual report, a filing is made of Report Form
LM-2 or LM-3, pursuant to the Labor-Management Reporting and Disclosure
Act
[[Page 421]]
(LMRDA) and regulations thereunder, and
(2) In lieu of a summary plan description, the employee organization
constitution or by-laws may be furnished in accordance with Sec.
2520.104b-2 to participants and beneficiaries together with any
supplement to such document necessary to meet the requirements of
Sec. Sec. 2520.102-2 and 2520.102-3.
(b) Application. This exemption is available only to welfare benefit
plans maintained by an employee organization, as that term is defined in
section 3(4) of the Act, paid for out of the employee organization's
general assets, which are derived wholly or partly from membership dues,
and which cover employee organization members and their beneficiaries.
(c) Limitations. This exemption does not exempt the administrator
from any other requirement of part 1 of title I of the Act.
[42 FR 37184, July 19, 1977, as amended at 67 FR 776, Jan. 7, 2002]
