The ERISA consultants at the Learning Center Resource Desk, which is available through Columbia Threadneedle Investments, regularly receive calls from financial advisors on a broad array of technical topics related to IRAs and qualified retirement plans. A recent call with a financial advisor in Delaware is representative of a common question related to retirement plan documents. The advisor asked:
“How can plan participants obtain copies of the documents that govern their workplace retirement plans?”
Highlights of Discussion
- If a participant and his or her financial advisor want to have a comprehensive understanding of how to maximize savings in the plan — and develop retirement income strategies — it’s important to obtain a full copy of the plan document. There are a few ways plan participants may be able to obtain copies.
- Under the Employee Retirement Security Act of 1974 (ERISA), plan sponsors must give participants a summary of the plan (called a Summary Plan Description or SPD), but ERISA says plan sponsors need only provide the actual, full governing plan documents upon participant request.
- As one would expect, the full plan document provides more details and information about the retirement plan than the SPD.
- The following is a list of ways that financial advisors may be able to help their plan participant clients obtain copies of the plan documents for their workplace retirement plans.
- If an employee benefits web site for the company is available, ask your clients to log on to the site. Next, check for a “plan information,” “plan documents,” or “plan forms” section. Sometimes electronic portable document format (PDF) files of plan documents are posted in these sections and can be downloaded for review.
- Have your clients talk to the plan sponsor or human resources director to request a copy of the plan document. This individual may, but is not required to, provide a copy upon receiving a verbal request from the participant.
- The Learning Center Resource Desk maintains a library of thousands of plan documents obtained from employers from across the country. Financial advisors with access to the service (exclusively through their Columbia Threadneedle Investments wholesaler) can contact the Learning Center to ask the consultants whether their clients’ retirement plans are contained in the plan document library.
- A final, surefire way to obtain a copy of the plan document is through written request to the plan sponsor. Pursuant to Title I, Subtitle B, Part 1, Section 104(b)(4) of the Employee Retirement Income Security Act of 1974 (ERISA), the plan administrator shall “… upon written request of any participant or beneficiary, furnish a copy of the … trust agreement, contract, or other instruments under which the plan is established or operated.” A plan sponsor must supply the plan document within 30 days of the request [ERISA § 502(c)(1), 29 U.S.C. § 1132(c)(1)] or face penalty. (The Learning Center Resource Desk has a sample plan document request letter that advisors can obtain and share with their clients to request plan documents.)
- Getting the plan document is half the battle, so to speak. Understanding its provisions is the other half. The ERISA consultants at the Learning Center Resource Desk have decades of experience reviewing all types of retirement plan documents. Through its document review services, the Learning Center can help financial advisors who are working with plan participants understand the most complicated of plan provisions.
Conclusion
One way or another, participants in workplace retirement plans can obtain copies of the governing documents for their plans. The Learning Center can help translate plan provisions into action steps that will help participants and their financial advisors maximize contributions and develop retirement income strategies.
The Learning Center Resource Desk is staffed by the Retirement Learning Center, LLC (RLC), a third-party industry consultant that is not affiliated with Columbia Threadneedle. Any information provided is for informational purposes only. It cannot be used for the purposes of avoiding penalties and taxes. Columbia Threadneedle does not provide tax or legal advice. Consumers consult with their tax advisor or attorney regarding their specific situation.
Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Columbia Threadneedle.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.
©2015 Columbia Management Investment Advisers, LLC. Used with permission.
