The U. S. Department of Labors Pension and
Welfare Benefits Administration today is publishing in the Federal Register a
request for public comments on the adequacy of its current rules requiring
employers and employee benefit plans to disclose information to participants
and beneficiaries in those plans.
The Employee Retirement Income Security Act
(ERISA) requires pension, health and other welfare plans to give participants
and beneficiaries certain information automatically or on request. The law also
sets standards for the timing and content of these disclosure requirements.
Recent events, including decisions in the federal
courts, have suggested that another part of ERISA which sets fiduciary
standards creates additional disclosure obligations. The department seeks to
evaluate whether additional guidance is necessary to reconcile these disclosure
obligations.
"We want workers to get the information about
their benefit plans that they need," said Acting Assistant Secretary Leslie B.
Kramerich. "We want to build on conversations we have been having regarding the
adequacy and timeliness of plan communications today. In addition, we know that
the courts have been addressing these issues and the developing case law gives
rise to questions as well. Therefore, we want to raise these questions and hope
to hear from the public about the information that workers need today and how
to get it to them in a timely manner so that both employees and employers feel
that communications about pension and health benefits are meaningful."
The request for information (RFI), scheduled to be
published in the Sept. 14 Federal Register, is designed to assist the
department in resolving concerns by employees and the employer community over
the adequacy of disclosure under certain circumstances, including both pension
and health plans. These include:
- whether current disclosure requirements fail to address the
needs of participants and beneficiaries in understanding their benefits, rights
under ERISA and the consequences of the choices offered to them under plans;
- whether current administrative practices of plans fail to meet
certain standards, including those related to completeness, accuracy and
clarity;
- practical factors the department should consider in developing
guidance about disclosure required by plan fiduciaries;
- what changes would be needed for plans to meet standards
listed in the RFI;
- whether state and other federal requirements should be
considered in developing guidance;
- the costs and benefits to plan sponsors and participants
associated with changing plan administrative practices on disclosure among
various types of plans and by plan size; and
- the nature of disclosure plan fiduciaries are currently
providing under various hypothetical situations to satisfy their obligations
under ERISA.
Written comments should be provided to the
department on or before January 12, 2001. The comments should be addressed to
the Office of Regulations and Interpretations, Pension and Welfare Benefits
Administration, U. S. Department of Labor, 200 Constitution Avenue, N.W., Room
N-5669, Washington, D. C., Attention: Disclosure RFI. |