[Code of Federal Regulations]

[Title 29, Volume 9]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 29CFR2520.104-50]



[Page 451-452]

 

                             TITLE 29--LABOR

 

 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 

                                  LABOR

 

PART 2520_RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE--Table of 

Contents

 

    Subpart D_Provisions Applicable to Both Reporting and Disclosure 

                              Requirements

 

Sec.  2520.104-50  Short plan years, deferral of accountant's examination 

and report.



    (a) Definition of ``short plan year.'' For purposes of this section, 

a short plan year is a plan year, as defined in section 3(39) of the 

Act, of seven or fewer months' duration, which occurs in the event that:

    (1) A plan is established or commences operations;

    (2) A plan is merged or consolidated with another plan or plans;



[[Page 452]]



    (3) A plan is terminated; or

    (4) The annual date on which the plan year begins is changed.

    (b) Deferral of accountant's report. A plan administrator is not 

required to include the report of an independent qualified public 

accountant in the annual report for the first of two consecutive plan 

years, one of which is a short plan year, provided that the following 

conditions are satisfied:

    (1) The annual report for the first of the two consecutive plan 

years shall include:

    (i) Financial statements and accompanying schedules prepared in 

conformity with the requirements of section 103(b) of the Act and 

regulations promulgated thereunder;

    (ii) An explanation why one of the two plan years is of seven or 

fewer months' duration; and

    (iii) A statement that the annual report for the immediately 

following plan year will include a report of an independent qualified 

public accountant with respect to the financial statements and 

accompanying schedules for both of the two plan years.

    (2) The annual report for the second of the two consecutive plan 

years shall include:

    (i) Financial statements and accompanying schedules prepared in 

conformity with section 103(b) of the Act and regulations promulgated 

thereunder with respect to both plan years;

    (ii) A report of an independent qualified public accountant with 

respect to the financial statements and accompanying schedules for both 

plan years; and

    (iii) A statement identifying any material differences between the 

unaudited financial information relating to, and contained in the annual 

report for, the first of the two consecutive plan years and the audited 

financial information relating to that plan year contained in the annual 

report for the immediately following plan year.

    (c) Accountant's examination and report. The examination by the 

accountant which serves as the basis for the portion of his report 

relating to the first of the two consecutive plan years may be conducted 

at the same time as the examination which serves as the basis for the 

portion of his report relating to the immediately following plan year. 

The report of the accountant shall be prepared in conformity with 

section 103(a)(3)(A) of the Act and regulations thereunder.



[46 FR 1265, Jan. 6, 1981]