[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2520.104b-1]

[Page 414-417]
 
                             TITLE 29--LABOR
 
CHAPTER XXV--PENSION AND WELFARE BENEFITS ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2520--RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE--Table of Contents
 
                   Subpart F--Disclosure Requirements
 
Sec. 2520.104b-1  Disclosure.

(The information collection requirements contained in subpart F were 
approved by the Office of Management and Budget under control number 
1210-0016)


    (a) General disclosure requirements. The administrator of an 
employee benefit plan covered by part 1 of title I of the Act must 
disclose certain material, including reports, statements and documents, 
to participants and beneficiaries. Disclosure under part 1 takes three 
forms. First, the plan administrator must, by direct operation of law, 
furnish certain material to all participants covered under the plan and 
beneficiaries receiving benefits under the plan (other than 
beneficiaries under a welfare plan) at stated times or if certain events 
occur. Second, the plan administrator must furnish certain material to 
individual participants and beneficiaries upon their request. Third, the 
plan administrator must make certain material available to participants 
and beneficiaries for inspection at reasonable times and places.

[[Page 415]]

    (b) Fulfilling the disclosure obligation. (1) Where certain 
material, including reports, statements and documents, is required under 
part 1 of the Act and this part to be furnished either by direct 
operation of law or on individual request, the plan administrator shall 
use measures reasonably calculated to ensure actual receipt of the 
material by plan participants and beneficiaries. Material which is 
required to be furnished to all participants covered under the plan and 
beneficiaries receiving benefits under the plan (other than 
beneficiaries under a welfare plan) must be sent by a method or methods 
of delivery likely to result in full distribution. For example, in-hand 
delivery to an employee at his or her worksite is acceptable. However, 
in no case is it acceptable merely to place copies of the material in a 
location frequented by participants. It is also acceptable to furnish 
such material as a special insert in a periodical distributed to 
employees such as a union newspaper or a company publication if the 
distribution list for the periodical is comprehensive and up-to-date and 
a prominent notice on the front page of the periodical advises readers 
that the issue contains an insert with important information about 
rights under the plan and the Act which should be read and retained for 
future reference. If some participants and beneficiaries are not on the 
mailing list, a periodical must be used in conjunction with other 
methods of distribution such that the methods taken together are 
reasonably calculated to ensure actual receipt. Material distributed 
through the mail may be sent by first, second, or third-class mail. 
However, distribution by second or third-class mail is acceptable only 
if return and forwarding postage is guaranteed and address correction is 
requested. Any material sent by second or third-class mail which is 
returned with an address correction shall be sent again by first-class 
mail or personally delivered to the participant at his or her worksite.
    (2) For purposes of section 104(b)(4) of the Act, materials 
furnished upon written request shall be mailed to an address provided by 
the requesting participant or beneficiary or personally delivered to the 
participant or beneficiary.
    (3) For purposes of section 104(b)(2) of the Act, where certain 
documents are required to be made available for examination by 
participants and beneficiaries in the principal office of the plan 
administrator and in such other places as may be necessary to make 
available all pertinent information to all participants and 
beneficiaries, disclosure shall be made pursuant to the provisions of 
this paragraph. Such documents must be current, readily accessible, and 
clearly identified, and copies must be available in sufficient number to 
accommodate the expected volume of inquiries. Plan administrators shall 
make copies of the plan description, latest annual report, and the 
bargaining agreement, trust agreement, contract, or other instruments 
under which the plan is established or operated available at all times 
in their principal offices. They are not required to maintain these plan 
documents at all times at each employer establishment or union hall or 
office as described in paragraphs (b)(3)(i), (ii), and (iii) of this 
section, but the documents must be made available at any such location 
within ten calendar days following the day on which a request for 
disclosure at that location is made. Plan administrators shall make plan 
documents available at the appropriate employer establishment or union 
meeting hall or office within the required ten day period when a request 
is made directly to the plan administrator or through a procedure 
establishing reasonable rules governing the making of requests for 
examination of plan documents. If a plan administrator prescribes such a 
procedure and communicates it to plan participants and beneficiaries, a 
plan administrator will not be required to comply with a request made in 
a manner which does not conform to the established procedure. In order 
to comply with the requirements of this section, a procedure for making 
requests to examine plan documents must permit requests to be made in a 
reasonably convenient manner both directly to the plan administrator and 
at each employer establishment, or

[[Page 416]]

union meeting hall or office where documents must be made available in 
accordance with this paragraph. If no such reasonable procedure is 
established, a good faith effort by a participant or beneficiary to 
request examination of plan documents will be deemed a request to the 
plan administrator for purposes of this paragraph.
    (i) In the case of a plan not maintained according to a collective 
bargaining agreement, including a plan maintained by a single employer 
with more than one establishment, a multiple employer plan, and a plan 
maintained by a controlled group of corporations (within the meaning of 
section 1563(a) of the Internal Revenue Code of 1954 (the Code)), 
determined without regard to section 1563(a)(4) and (e)(3)(C) of the 
Code), documents shall be made available for examination in the 
principal office of the employer and at each employer establishment in 
which at least 50 participants covered under a plan are customarily 
working. ``Establishment'' means a single physical location where 
business is conducted or where services or industrial operations are 
performed. Where employees are engaged in activities which are 
physically dispersed, such as agriculture, construction, transportation 
and communications, the ``establishment'' shall be the place to which 
employees report each day. When employees do not usually work at, or 
report to, a single establishment--for example, traveling salesmen, 
technicians, and engineers--the establishment shall be the location from 
which the employees customarily carry out their activities--for example 
the field office of an engineering firm servicing at least 50 
participants covered under the plan.
    (ii) In the case of a plan maintained solely by an employee 
organization, the plan administrator shall take measures to ensure that 
documents are available for examination at the meeting hall or office of 
each union local in which there are at least 50 participants covered 
under the plan. Such measures shall include distributing copies of the 
documents to each union local in which there are at least 50 
participants covered under the plan.
    (iii) In the case of a plan maintained according to a collective 
bargaining agreement, including a collectively bargained single employer 
plan with more than one establishment, a collectively bargained multiple 
employer plan, and a multiemployer plan which meets the definition of 
section 3(37) of the Act, Sec. 2510.3-37 of this chapter, and section 
414(b) of the Internal Revenue Code of 1954 and 26 CFR 1.414(f) (40 FR 
43034), documents shall be made available for examination in the 
principal office of the employee organization and at each employer 
establishment in which at least 50 participants covered under the plan 
are customarily working. In employment situations where employees do not 
usually work at, or report to, a single establishment, the plan 
administrator shall take measures to ensure that plan documents are 
available for examination at the meeting hall or office of each union 
local in which there are at least 50 participants covered under the 
plan.
    (c) Disclosure through electronic media. (1) The administrator of a 
group health plan furnishing documents described in section 104(b)(1) of 
the Act through electronic media will be deemed to satisfy the 
requirements of paragraph (b)(1) of this section with respect to 
participants described in paragraph (c)(2) of this section if:
    (i) The administrator takes appropriate and necessary measures to 
ensure that the system for furnishing documents results in actual 
receipt by participants of transmitted information and documents (e.g., 
uses return-receipt electronic mail feature or conducts periodic reviews 
or surveys to confirm receipt of transmitted information);
    (ii) Electronically delivered documents are prepared and furnished 
in a manner consistent with the applicable style, format and content 
requirements (See 29 CFR 2520.102-2 through 2520.102-5);
    (iii) Each participant is provided notice, through electronic means 
or in writing, apprising the participant of the document(s) to be 
furnished electronically, the significance of the document (e.g., the 
document describes changes in the benefits provided by your plan) and 
the participant's right to request and receive, free of charge, a paper 
copy of each such document; and

[[Page 417]]

    (iv) Upon request of any participant, the administrator furnishes, 
free of charge, a paper copy of any document delivered to the 
participant through electronic media.
    (2) For purposes of paragraph (c)(1) of this section, the furnishing 
of documents through electronic media satisfies the requirements of 
paragraph (b)(1) of this section only with respect to participants:
    (i) Who have the ability to effectively access at their worksite 
documents furnished in electronic form; and
    (ii) Who have the opportunity at their worksite location to readily 
convert furnished documents from electronic form to paper form free of 
charge.
    (3) This paragraph (c) applies on or after June 1, 1997.
    (d) Participant and beneficiary status for purposes of section 
101(a) and 104(b)(1) of the Act and subpart F of this part. See 
Secs. 2510.3-3(d)(1), 2510.3-3(d)(2) and 2520.3-3(d)(3) of this chapter.

(Approved by the Office of Management and Budget under control number 
1210-0039)

[42 FR 37186, July 19, 1977, as amended at 62 FR 16985, Apr. 8, 1997; 62 
FR 36205, July 7, 1997]