When are Participant Statements due?

[Hoard1]

Is there a deadline to provide participants in a pension plan ( 401(k & MPPP) a statement of their account balance. PYE 9/30/98. I thought there was a 256? day requirement for SAR. Is there any day requirment for statemnts and what are the penalties for noncompliance?

[Tom Poje]

Technically, there is no deadline for active participants. you don't have to provide a statement unless they request one. Honest. You can send out a valuation w/o statements. Now, once the val is done, and if participant request a statement, I think you have 30 days.

so, to avoid a mess, statements are sent out with the val. The 30 days may impose fines, fees,etc. one of those circumstance issues. what you probably don't want is to get the DOL involved as a result.

[Hoard1]

Does the circumstances outlined above change for terminated participants? As a terminated participant I will not know when the valuation is completed.

Is there a DOL SAR requirement?

[Lynn Campbell]

If you are the participant and concerned about your account balance, you should request a statement in writing. Under ERISA you are entitled to receive this once a year if you ask for it. Also the DOL does require a yearly SAR.

[Tom Poje]

Normally a plan has 7 months after the close of the year to file the proper forms with the IRS, which would bring a 9/30 plan year end to 4/30. Extensions are allowed up to 2 1/2 months. since that would be the latest for filing forms, it is reasonable to expect information no later than shortly after the latest filing deadline. Since we are now into June, its reasonable to expect information soon...

that being said, there are some things to consider. Suppose plan has 1000 hr requirement to receive a contribution - regardless if you terminate or not. The company is still deciding how much a contribution to make. Thus, there may be a good reason why the valuation has not been completed.

yes, that is a pain sometimes if you are terminated and want your money, but you may be entitled to more, and a lot of companies don't like dealing with a double payout.

(on the other hand, some companies are slow in providing information...like pulling teeth to get the information.

one can never be sure why there is a holdup. usually there is a valid reason)

so, figure 9 1/2 months after plan year end as absolute deadline for filing forms, you should be provided with information shortly thereafter.

by the way, I believe the regs require terminees to be provided a statement, while actives do not have to get one unless they request it.

[Hoard1]

Thanks for the info. Surprising that participants in 401(k) plans are not mandated to receive statemnt and must request them. I'll waite until after July 15 and request a statemnt if one has not arrived by that time.