Sch. A. what does reg "on request" wording mean

[Guest ak]

Below is the applicable ERISA statute and the relevent underlying reg. that applies to general account contracts:

103 (a)(2)

(2) If some or all of the information necessary to enable the administrator to comply with the requirements of this subchapter is maintained by—

(A) an insurance carrier or other organization which provides some or all of the benefits under the plan, or holds assets of the plan in a separate account,

(B) a bank or similar institution which holds some or all of the assets of the plan in a common or collective trust or a separate trust, or custodial account, or

© a plan sponsor as defined in section 1002 (16)(B) of this title,

such carrier, organization, bank, institution, or plan sponsor shall transmit and certify the accuracy of such information to the administrator within 120 days after the end of the plan year (or such other date as may be prescribed under regulations of the Secretary).

2520.103-5

***

© Contents. The information required to be provided to the

administrator shall include--

(1) In the case of an insurance carrier or other organization which:

(i) Provides funds from its general asset account for the payment of benefits under a plan, upon request of the plan administrator, such information as is contained within the ordinary business records of the

insurance carrier or other organization and is needed by the plan administrator to comply with the requirements of section 104(a)(1) of the Act and Sec. 2520.104a-5 or Sec. 2520.104a-6

I'm wondering about the "upon request" wording in the reg. It has always been my understanding that the information must automatically be sent out regardless of whether requested by the administrator. This seems to be the DOL's position and the statute seems to bear it out. But the reg seems to say that it is required but only if a request for the information is made, i.e., no request insurer does not have to provide. So what is it, automatic or not. How does the "on request" wording in the reg square with the other guidance. The schedule instructions are ambiguous on this issue, i.e., just say "required"

[WDIK]

[in a pseudo-Spanish accet] "I do not think it means what you think it means." - Inigo Montoya

2520.103-5(a)(2) imposes the appropriate time period for disclosure. It appears that the excerpt you refer to may deal with a request by the plan administrator for the payment of benefits under a plan.

[E as in ERISA]

I think that the statute says the obvious business reports are required to be provided. And the regulation fills in any gaps. If there is some report or other information that it is not so obvious that it is required to be provided, then it can become so upon request of the client.