Participant Statements

[betheeg]

We have a client that has a PS plan and the investments are at MFS. MFS provides quarterly statements directly to plan participants. Is it required for them to also get a statement for year end showing contribution made for that year? Obviously that info would not be on the Dec 31 MFS statement.

Thanks for any help.

[Tom Poje]

statements are a wierd item.

ERISA 209 reads as follows

every employer shall provide [info] to each employee who:

A) requests such report

B)terminates

or

C)has a 1 -year break in svc.

in other words, there is actually no requirement to provide annual statements to most people!

That question use to show up on the ASPA test from time to time, simply because it is engraved in everyone's head that you have to provide something evry year.

Now, I would say it makes sense to do provide annual statements (simply to show vesting and contributions) but one doesn't have to. And if one person requests a statement you know there will be others, so it is easier to do things in one batch.

I suppose in your particular case you could dummy up something indicating the contribution only, to be passed out along with the SAR if you have finished that..

[betheeg]

Thanks for the info Tom!