Employee Retirement Income Security Act of 1974 section 104(b)(3) and regulations codified at 29 CFR 2520.104b-10 require employee benefit plans to furnish a summary of the plan's annual report to participants and specified beneficiaries for purposes of disclosure of basic financial information.
US Code:
29 USC 1024(b)(3)
Name of Law: Employee Retirement Income Security Act of 1974
The Department has revised some of the assumptions used to estimate burden hours and costs for this ICR, which results in revised estimates as compared with the 2006 submission. Some of the changes have increased burden, while others have reduced burden. The following describes the specific changes.
First, the Department has decided to assume that all affected plans will use their own resources to comply with these information collection requirements. This assumption has not increased or decreased the estimated burden, but has shifted some of the burden from a cost burden (Item 13) to an hour burden (Item 12).
Second, the underlying data regarding the number of plan-respondents has been updated to reflect the most recent available information derivable from the Form 5500 Series filings (from the 2006 plan year). This has permitted a more accurate and slightly lower estimate of the number of plans likely to be subject to the SAR regulation in any year. Changes in the data collected through the Form 5500 further have permitted a more accurate count of these plans. Likewise, labor rates have been updated to reflect the most recent wage estimates. The increase in labor costs has increased the equivalent cost burden estimates given in Question 12.
Third, the Department has significantly reduced its estimate of the number of SARs sent annually to participants. Previously, we had included health care plan dependents in our count of participants. We now believe this to be an error due to the fact that the regulation requires plans to send a copy of the SAR only to each policy holder. This change greatly reduced the estimated time and cost burden on the plans.
Finally, the Department has decreased the estimated annual cost burden on plans, by assuming that plans which have more than 1,000 participants will utilize a bulk mail postage rate to send the SARs to policy holders. Previously, we had assumed that all plans sent SARs to participants using the standard postage rate. This change reduced the estimated cost burden on the plan.
Overall, the hour burden has increased by 1.7 million hours, but was offset by a reduction in the cost burden by $87.6 million.
$0
No
No
Uncollected
Uncollected
No
Uncollected
Chris Cosby 202 693-8540
No
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
SARss2009.doc
ERISA Summary Annual Report Requirement