Summary Annual Report

bjeannotte

Hello!

 

I'm new to the field of HR and I'm looking for some advice. We just received our Summary Annual Report and I need to get a copy to individuals enrolled in our plan.  Would anyone have an example letter to share so I can ensure I am putting all the necessary information in a letter to explain the SAR to employees?

 Also, do you mail a copy to everyone with the 401k or is email acceptable for those that have email?

 Thanks for your help!

 

hr410

SPDs, summaries of material changes to the plan, summary annual reports, and changes to information included in the SPD of group health plans may be distributed electronically.  Electronic distribution may be used only to provide documents to employees who, at their worksite, have the ability to effectively access the electronic documents and readily convert the electronic document to paper form free of charge.

     Before using electronic distribution, the plan administrator must take steps to ensure that such distribution:

• Results in actual receipt by participants through the use of a return-receipt electronic mail feature or periodic reviews or surveys by the plan administrator to confirm the integrity of the delivery system; and

• Results in the furnishing of disclosure information that is consistent with the style, format, and content requirements of the documents.

     The electronically distributed documents must apprise the participant of their significance (e.g., the documents describe changes in the benefits provided by the plan) and of the participant's right to request and receive, free of charge, a paper copy of each such document from the plan administrator.

     Note: Congress has given its stamp of approval to electronic distribution by authorizing the electronic distribution of new notices required by the Pension Protection Act of 2006 (PPA). PPA provides that notices may be delivered in written, electronic, or other appropriate form to the extent such form is reasonably accessible to the participant.

ERISAmaven

There is no information that has to be provided when distributing the SAR. The cover letter or email could say that enclosed or attached is the Summary Annual Report for the (Name of the Plan).

chrpr1

yes - electronic distributions are good. Another option is your company newsletter  that are submitted to employees electronically or posted on company intranet or mailed to employees home.