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Multiemployer Pension Reform Act of 2014 Increases Required Disclosures to Plan Employees and Contributing Employers

Multiemployer Pension Reform Act of 2014 Increases Required Disclosures to Plan Employees and Contributing Employers

The Multiemployer Pension Reform Act of 2014 (MPRA) increases the plan information to be made available upon request.

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Prior to the amendment, ERISA disclosure requirements were limited to furnishing actuarial reports, financial reports and applications for extension of amortization periods filed with the Secretary of the Treasury to plan participants or beneficiaries, employer representatives or any employer obligated to contribute to the plan.  The MPRA completely amends the disclosure requirements and amends provisions relating to limitations of disclosure, record retention and civil enforcement.  The new disclosure requirements require Plan administrators to furnish the following expanded list of documents of which they have had possession for at least 30 days and less than six years:

  • Current Plan Document

  • Latest Summary Plan Description

  • Current Trust Agreement

  • Participation Agreement(s) (up to last 5 years)

  • The Annual Report

  • Plan Funding Notice

  • Periodic Actuarial Report 2

  • Financial Report provided by Actuary 2

  • Audited Financial Statements (any plan year)

  • Extension of Amortization Periods Applications 2

  • Latest Funding or Improvement Plan (if applicable)

The MPRA amends ERISA limitations on disclosure, retention of records and civil enforcement.  Disclosure limitations were amended to meet the various characteristics of the additional disclosure requirements.  The record retention section amendments were not significant, and civil enforcement provides for additional remedies for noncompliance.

These increased disclosure requirements will result in increased work by plan administrators and increased focus on Plan counsel, auditors and other service providers to ensure Plan documents are accurate and complete.

Kyle S. Whittemore is the partner-in-charge of Lindquist LLP’s payroll compliance department.  He is responsible for the department processes, policies, procedures and quality control systems implemented to meet agreed-upon procedure requirements and efficient compliance testing work standards.  Please contact him at (925) 277-9100 with questions.

1 Sec. 111 - Required Disclosure of Multiemployer Plan Information of the MPRA amends Sec.   101(k)(1) of the Employee Retirement Income Security Act of 1974 (ERISA) by increasing the Multiemployer plan information to be made available upon request.

2 Prior ERISA requirement.

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