[Federal Register Volume 67, Number 4 (Monday, January 7, 2002)]
[Rules and Regulations]
[Pages 772-777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-140]



[[Page 771]]

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Part II





Department of Labor





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 Pension and Welfare Benefits Administration



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29 CFR Parts 2520, 2560, and 2570



Removal of Superseded Regulations Relating to Plan Descriptions and 
Summary Plan Descriptions, and Other Technical Conforming Amendments; 
Final Rule



Furnishing Documents To The Secretary of Labor on Request Under ERISA 
Section 104(a)(6) And Assessment Of Civil Penalties Under ERISA Section 
502(c)(6); Final Rule

  Federal Register / Vol. 67, No. 4 / Monday, January 7, 2002 / Rules 
and Regulations  

[[Page 772]]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration

29 CFR Parts 2520 and 2560

RIN 1210-AA66


Removal of Superseded Regulations Relating to Plan Descriptions 
and Summary Plan Descriptions, and Other Technical Conforming 
Amendments

AGENCY: Pension and Welfare Benefits Administration, Department of 
Labor.

ACTION: Final rule.

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SUMMARY: This document contains a final rulemaking that removes certain 
provisions from the Code of Federal Regulations (CFR) that were 
superseded, in whole or in part, by amendments of the Employee 
Retirement Income Security Act of 1974 (ERISA) enacted as part of 
section 1503 of the Taxpayer Relief Act of 1997 (TRA ``97). These TRA 
``97 amendments eliminated the ERISA requirements that plan 
administrators file summary plan descriptions (SPDs) and summaries of 
material modifications (SMMs) with the Department of Labor 
(Department). The amendments also eliminated all requirements 
pertaining to plan descriptions. In addition to removing superseded 
regulations from the CFR, this final rule makes miscellaneous technical 
amendments to the CFR designed to correct affected cross-references. 
The final rule affects employee pension and welfare benefit plans, plan 
sponsors, administrators and fiduciaries, and plan participants and 
beneficiaries.

DATES: The amendments contained herein will be effective March 8, 2002. 
The amendments contained herein will be applicable as of the August 5, 
1997 effective date of section 1503 of TRA '97.

FOR FURTHER INFORMATION CONTACT: Lisa M. Fields, Office of Regulations 
and Interpretations, Pension and Welfare Benefits Administration, U.S. 
Department of Labor, (202) 693-8500 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

1. Overview

    On August 5, 1999, the Department published in the Federal Register 
(64 FR 42792) a proposed rule to implement certain amendments to ERISA 
added as part of TRA '97. TRA '97 amended sections 101(b), 102, and 
104(a)(1) of ERISA to eliminate the requirements that plan 
administrators file SPDs, SMMs, and plan descriptions with the 
Department.\1\ TRA '97 also amended section 104(b) of ERISA to 
eliminate the requirement that plan administrators furnish plan 
descriptions to participants and beneficiaries. These statutory 
amendments superseded, in whole or in part, the Department's 
regulations that implemented the SPD, SMM, and plan description filing 
requirements. This final rule removes those superseded regulations from 
the CFR.\2\ This final rule also makes several technical conforming 
amendments to reflect the fact that certain regulatory provisions 
granting relief from certain plan description, SPD, and SMM 
requirements have also been superseded and rendered obsolete by the TRA 
'97 amendments. Finally, the final rule corrects affected regulatory 
and statutory cross-references in parts 2520 and 2560 of Chapter XXV of 
Title 29 of the CFR. A chart identifying each regulation that is 
changed by this final rule is printed below.
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    \1\ Prior to 1979, the administrator of an employee benefit plan 
subject to the provisions of Part 1 of Title I of ERISA was required 
to file with the Department a plan description (Form EBS-1) to 
satisfy the statutory filing requirements of section 104(a) and 29 
CFR 2520.104a-2. See 41 FR 16957 (April 23, 1976). In 1979, the 
Department amended 29 CFR 2520.104a-2 (44 FR 31639 (June 1, 1979)), 
to provide that the administrator would satisfy the plan description 
filing requirements of section 104(a)(1)(B) by filing with the 
Department SPDs and updated SPDs in accordance with section 
104(a)(1)(C) and the regulations thereunder.
    \2\ The Department is also publishing in today's Federal 
Register a separate final rule to implement related TRA '97 
amendments that added sections 502(c)(6) and 104(a)(6) to Title I of 
ERISA. Section 104(a)(6) provides that the administrator of any 
employee benefit plan must furnish to the Department, upon request, 
any documents relating to the employee benefit plan, including but 
not limited to, the latest SPD, and the bargaining agreement, trust 
agreement, contract, or other instrument under which the plan is 
established or operated. Section 502(c)(6) provides that if, within 
30 days of a request by the Department to a plan administrator for 
documents under section 104(a)(6), the plan administrator fails to 
furnish the material requested to the Department, the Department may 
assess a civil penalty against the plan administrator of up to $100 
a day from the date of such failure, but in no event in excess of 
$1,000 per request.
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2. Public Comments and Adoption of Final Rule

    The Department received no comments concerning the proposal, and 
the final rule being adopted herein is substantially in the form 
proposed. A technical conforming change to 29 CFR 2520.104b-2(g) that 
was inadvertently omitted from the proposal has been added to the final 
rule.

3. Summary of Final Rule

    This final rule removes, some in whole and some in part, the 
following superseded regulations from 29 CFR part 2520. This final rule 
also reserves certain removed sections of the CFR to preserve the 
continuity of codification in the CFR.

A. Removal of Regulations Superseded in Whole

    This final rule removes and reserves sections 2520.102-1 and 
2520.104a-2 because they were superseded by paragraphs (a) and (c) of 
section 1503 of TRA '97 which eliminated sections 101(b)(2) and 
104(a)(1)(B) of ERISA. The removed regulations required plan 
administrators to file a plan description with the Department in 
accordance with sections 101(b)(2) and 104(a)(1)(B) of ERISA. See supra 
note 1.
    This final rule removes and reserves section 2520.104a-3 because it 
was superseded by paragraphs (a) and (c) of section 1503 of TRA '97 
which eliminated sections 101(b)(1) and 104(a)(1)(C) of ERISA. The 
removed regulation implemented the requirement in sections 101(b)(1) 
and 104(a)(1)(C) of ERISA that plan administrators file with the 
Department a copy of any SPD that is required to be furnished to 
participants covered under the plan and beneficiaries receiving 
benefits under the plan.
    This final rule removes and reserves sections 2520.104a-4 and 
2520.104a-7 because they were superseded by paragraphs (a) and (c) of 
section 1503 of TRA '97 which eliminated sections 101(b)(3), 102(a)(2), 
and 104(a)(1)(D) of ERISA. The removed regulations implemented sections 
101(b)(3), 102(a)(2), and 104(a)(1)(D) of ERISA which required plan 
administrators to file with the Department a copy of summaries of 
material modifications in the terms of the plan and summaries of any 
changes in the information required to be in the SPD.

B. Removal of Regulations Superseded in Part

    This final rule amends section 2520.104-20 to reflect the fact that 
certain reporting relief granted by that regulation is no longer needed 
in light of TRA '97. Specifically, section 2520.104-20 exempts certain 
unfunded or insured welfare plans with fewer than 100 participants 
from, among others, the requirements to file plan descriptions, SPDs, 
and SMMs with the Department. Inasmuch as plan descriptions, SPDs, and 
SMMs are no longer required to be filed under ERISA as amended by TRA 
'97, this final rule amends section 2520.104-20(a) to remove the 
provisions that granted relief from those filing requirements.
    This final rule similarly amends section 2520.104-21 to reflect the 
fact

[[Page 773]]

that the SPD, SMM, and plan description filing relief granted by that 
regulation is no longer needed in light of the TRA '97 elimination of 
those filing requirements. Specifically, section 2520.104-21 provides a 
limited exemption from, among others, the requirements to file SPDs, 
SMMs, and plan descriptions with the Department for welfare benefit 
plans that cover fewer than 100 participants at the beginning of the 
plan year, are part of a group insurance arrangement within the meaning 
of the regulation, and that otherwise satisfy the conditions of section 
2520.104-21(b). This final rule amends section 2520.104-21(a) by 
removing the provisions on filing SPDs, SMMs, and plan descriptions 
because these documents are no longer required to be filed under ERISA 
as amended by TRA '97.\3\
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    \3\ Section 2520.104-21(d)(3) was previously amended to 
eliminate references to requirements to file plan descriptions, 
SPDs, and SMMs as part of a final rule adopting amendments to 
ERISA's annual reporting regulations. See 65 FR 21068, 21084 (April 
19, 2000).
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    This final rule amends sections 2520.104-20(c) and 2520.104-21(c) 
to confirm that, under the exemption, plan administrators continue to 
be obligated to furnish certain information to the Secretary on request 
by changing the reference in these subsections from section 104(a)(1) 
to section 104(a)(6). The amendments made by this final rule do not 
otherwise change the relief available in sections 2520.104-20 and 
2520.104-21.
    This final rule further amends sections 2520.104-20 and 2520.104-21 
to reflect the fact that the relief granted by those regulations from 
the requirement to disclose plan descriptions is no longer needed in 
light of the TRA '97 elimination of all plan description requirements 
from Title I of ERISA. These regulations exempted eligible welfare 
plans from the requirements to (1) furnish upon written request of any 
participant or beneficiary a copy of the plan description and (2) make 
copies of the plan description available in the principal office of the 
administrator and such other places as may be necessary for examination 
by any participant or beneficiary. This final rule amends sections 
2520.104-20(a)(2) and (a)(3) and 2520.104-21(a)(1) and (a)(2) by 
removing the provisions on disclosing plan descriptions because plan 
descriptions are no longer required to be furnished or made available 
under ERISA as amended by TRA '97.
    This final rule amends sections 2520.104-26 and 2520.104-27 to 
reflect the fact that the relief granted by those regulations from the 
requirements to file plan descriptions, SPDs, and SMMs is no longer 
needed in light of the TRA '97 elimination of those filing 
requirements. These regulations provided certain unfunded dues financed 
welfare and pension plans maintained by employee organizations with a 
limited exemption from, among others, the requirement to file plan 
descriptions and a simplified option for complying with the filing and 
disclosure requirements applicable to SPDs. This final rule amends 
sections 2520.104-26 and 2520.104-27 by removing the provisions on plan 
descriptions and further amends sections 2520.104-26 and 2520.104-27 to 
remove the simplified option for complying with the SPD filing 
requirements because plan descriptions and SPDs are no longer required 
to be filed with the Department under ERISA as amended by TRA '97. The 
amendments made by this final rule do not otherwise change the relief 
available in section 2520.104-26 and 2520.104-27.

C. Technical Conforming Amendments

    This final rule also makes technical changes that are needed to 
conform certain cross-references in 29 CFR parts 2520 and 2560 to 
sections of ERISA as amended by TRA '97. For example, regulation 
section 2520.104-43(a) refers to ERISA section 104(a)(1)(A) as the 
authority for the requirement to file annual reports with the 
Department. After TRA '97, the correct citation is to section 104(a)(1) 
of ERISA. Similar technical changes have also been made to conform 
internal CFR cross-references.\4\
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    \4\ The proposal included conforming amendments to sections 
2520.103-1(a), 2520.103-5(a), 2520.103-5(c)(1)(i), 2520.103-
5(c)(1)(iii), 2520.103-5(c)(2)(ii), 2520.103-5(c)(2)(iii), 2520.103-
5(c)(3), 2520.103-12(a), and 2520.104-41(b) to reflect a cross-
reference correction by replacing ``section 104(a)(1)(A)'' with 
``section 104(a)(1).'' These changes were adopted as final as part 
of an April 12, 2000 final rulemaking relating to the annual 
reporting and disclosure requirements under part 1 of Title I of 
ERISA. See 65 FR 21068 (April 19, 2000). Accordingly, these changes 
are not included in this rule.
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D. Quick Reference Chart

    The chart below is intended to provide interested persons with a 
quick reference tool for identifying each section of 29 CFR parts 2520 
and 2560 that is being amended by this final rule. For each regulation 
section being amended, the chart lists, in separate columns, what is 
being removed, what is being added, and a brief statement of the reason 
for the change.

                                              Quick Reference Chart
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            CFR section(s)                      Remove                    Add                   Reason(s)
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2520.102-1...........................  The whole section......  ``Reserved''...........  All ``plan
                                                                                          description''
                                                                                          requirements
                                                                                          eliminated from ERISA.
2520.102-4...........................  The last sentence......  Nothing................  SPD filing requirement
                                                                                          eliminated.
2520.104-4(a)........................  Last sentence..........  Nothing................  SPD filing requirement
                                                                                          eliminated.
2520.104-20(a) (introductory text)...  ``any of the followind   Nothing................  All ``plan
                                        documents: Plan                                   description''
                                        description, copy of                              requirements
                                        summary plan                                      eliminated from ERISA,
                                        description,                                      SPD filing requirement
                                        description of                                    eliminated, and SMM
                                        material modification                             filing requirement
                                        in the terms of a plan                            eliminated.
                                        or change in the
                                        information required
                                        to be included in the
                                        plan description,''.
2520.104-20(a)(2)....................  ``plan description,''..  Nothing................  All ``plan
                                                                                          description''
                                                                                          requirements
                                                                                          eliminated from ERISA.
2520.104-20(a)(3)....................  ``plan description       Nothing................  All ``plan
                                        and''.                                            description''
                                                                                          requirements
                                                                                          eliminated from ERISA.
2520.104-20(c).......................  ``(section 104(a)(1))''  ``(section 104(a)(6))''  Requirement to furnish
                                                                                          documents to the
                                                                                          Department upon
                                                                                          request moved to
                                                                                          section 104(a)(6).

[[Page 774]]

 
2520.104-21(a) (introductory text)...  ``with the Secretary     After the word file,     All ``plan
                                        any of the following     add: ``with the          description''
                                        documents: Plan          Secretary a terminal     requirements
                                        description, copy of     report or furnish upon   eliminated from ERISA,
                                        summary plan             written request of any   SPD filing requirement
                                        description,             participant or           eliminated, and SMM
                                        description of           beneficiary a copy of    filing requirement
                                        material modification    any terminal report as   eliminated.
                                        in the terms of a plan   required by section
                                        or change in the         104(b)(4) of the
                                        information required     Act.''.
                                        to be included in the
                                        plan description, and
                                        terminal report. In
                                        addition, the
                                        administrator of a
                                        plan exempted under
                                        this section:''.
2520.104-21(a)(1)....................  All of (a)(1)..........  Nothing................  All ``plan
                                                                                          description''
                                                                                          requirements
                                                                                          eliminated from ERISA.
2520.104-21(a)(2)....................  All of (a)(2)..........  Nothing................  All ``plan
                                                                                          description''
                                                                                          requirements
                                                                                          eliminated from ERISA.
2520.104-21(c) (2nd parenthetical)...  ``section                ``section 104(a)(1)''..  Cross-reference
                                        104(a)(1)(A)''.                                   correction.
2520.104-21(c) (3rd parenthetical)...  ``section 104(a)(1)''..  ``section 104(a)(6)''..  Requirement to furnish
                                                                                          documents to the
                                                                                          Department upon
                                                                                          request moved to
                                                                                          section 104(a)(6).
2520.104-23(b)(2)....................  ``104(a)(1)''..........  ``104(a)(6)''..........  Requirement to furnish
                                                                                          documents to the
                                                                                          Department upon
                                                                                          request moved to
                                                                                          section 104(a)(6).
2520.104-24(b).......................  ``104(a)(1)''..........  ``104(a)(6)''..........  Requirement to furnish
                                                                                          documents to the
                                                                                          Department upon
                                                                                          request moved to
                                                                                          section 104(a)(6).
2520.104-25..........................  ``104(a)(1)''..........  ``104(a)(6)''..........  Requirement to furnish
                                                                                          documents to the
                                                                                          Department upon
                                                                                          request moved to
                                                                                          section 104(a)(6).
2520.104-26(a).......................  All of paragraph (a),    New paragraph (a),       Paragraph (a)
                                        (a)(1), (a)(2), and      (a)(1), and (a)(2).      restructured to
                                        (a)(3).                                           reflect the fact that
                                                                                          ``plan description''
                                                                                          requirements and the
                                                                                          SPD filing requirement
                                                                                          were eliminated from
                                                                                          ERISA.
2520.104-27(a).......................  All of paragraph (a),    New paragraph (a),        Paragraph (a)
                                        (a)(1), (a)(2), and      (a)(1), and (a)(2).      restructured to
                                        (a)(3).                                           reflect the fact that
                                                                                          ``plan description''
                                                                                          requirements and the
                                                                                          SPD filing requirement
                                                                                          were eliminated from
                                                                                          ERISA.
2520.104-43(a).......................  ``section                ``section 104(a)(1)''..  Cross-reference
                                        104(a)(1)(A)''.                                   correction.
2520.104-44(d).......................   ``section               ``section 104(a)(1)''..  Cross-reference
                                        104(a)(1)(A)''.                                   correction.
2520.104a-2..........................  Whole section..........  ``Reserved''...........  All ``plan
                                                                                          description''
                                                                                          requirements
                                                                                          eliminated from ERISA.
2520.104a-3..........................  Whole section..........  ``Reserved''...........  SPD filingrequirement
                                                                                          eliminated.
2520.104a-4..........................  Whole section..........  ``Reserved''...........  SMM filing requirement
                                                                                          eliminated.
2520.104a-5(a).......................  ``section                ``section 104(a)(1)''..  Cross-reference
                                        104(a)(1)(A)''.                                   correction.
2520.104a-5(a)(1)....................  All text in paragraph    ``Reserved''...........  Provision obsolete.
                                        (a)(1).
2520.104a-7..........................  Whole section..........  ``Reserved''...........  SMM filing requirement
                                                                                          eliminated.
2520.104b-1(b)(3)....................  ``plan description''...  Nothing................  All ``plan
                                                                                          description''
                                                                                          requirements
                                                                                          eliminated from ERISA.
2520.104b-2(g).......................  ``to file with the       Nothing................  SPD filing requirement
                                        Secretary or''.                                   eliminated.
2520.104b-3(f).......................  All of paragraph (f)...  Nothing................  Part of paragraph (f)
                                                                                          superseded by TRA '97
                                                                                          and the rest of the
                                                                                          paragraph made
                                                                                          obsolete by this
                                                                                          rule's removal of Sec.
                                                                                           2520.104a-3.
2520.104b-3(g).......................  All of paragraph (9g)..  Nothing................  Paragraph (g)
                                                                                          superseded by TRA '97
                                                                                          by this rule's removal
                                                                                          of Sec.  2520.104a-3.
2560.502c-2(a).......................  ``section 101(b)(4)''..  ``section 101(b)(1)''..  Cross-reference
                                                                                          correction.
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Executive Order 12866 Statement

    Under Executive Order 12866, the Department must determine whether 
the regulatory action is ``significant'' and therefore subject to the 
requirements of the Executive Order and subject to review by the Office 
of Management and Budget (OMB). Under section 3(f), the order defines a 
``significant regulatory

[[Page 775]]

action'' as an action that is likely to result in a rule (1) having an 
annual effect on the economy of $100 million or more, or adversely and 
materially affecting a sector of the economy, productivity, 
competition, jobs, the environment, public health or safety, or State, 
local or tribal governments or communities (also referred to as 
``economically significant''); (2) creating serious inconsistency or 
otherwise interfering with an action taken or planned by another 
agency; (3) materially altering the budgetary impacts of entitlement 
grants, user fees, or loan programs or the rights and obligations of 
recipients thereof; or (4) raising novel legal or policy issues arising 
out of legal mandates, the President's priorities, or the principles 
set forth in the Executive Order. Pursuant to the terms of the 
Executive Order, it has been determined that this action is not 
significant within the meaning of the Executive Order.

Paperwork Reduction Act

    The rule being issued here is not subject to the requirements of 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) because it 
does not contain an ``information collection request'' as defined in 44 
U.S.C. 3502(3).

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires each 
Federal agency to prepare a final regulatory flexibility analysis when 
promulgating a final rule unless the head of the agency certifies that 
the final rule will not have a significant economic impact on a 
substantial number of small entities. Small entities include small 
businesses, organizations, and governmental jurisdictions. Because this 
rule would remove certain provisions of the CFR and make a number of 
technical amendments to the CFR designed to correct cross-references 
affected by amendments to ERISA enacted as part of TRA '97, the rule 
has no impact, independent of the statutory change eliminating the SPD 
and SMM filing requirements, on small plans. As a result, the 
undersigned certifies that this final rule does not have a significant 
impact on a substantial number of small entities. The factual basis for 
this certification is the same regardless of whether one uses the 
definition of small entity found in regulations issued by the Small 
Business Administration (13 CFR 121.201) or one defines small entity, 
on the basis of section 104(a)(2) of ERISA, as an employee benefit plan 
with fewer than 100 participants.

Small Business Regulatory Enforcement Fairness Act

    The rule being issued here is subject to the provisions of the 
Small Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 
801 et seq.) and has been transmitted to Congress and the Comptroller 
General for review. The rule is not a ``major rule'' as that term is 
defined in 5 U.S.C. 804, because it is not likely to result in (1) an 
annual effect on the economy of $100 million or more; (2) a major 
increase in costs or prices for consumers, individual industries, or 
Federal, State, or local government agencies, or geographic regions; or 
(3) significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic or 
export markets.

Unfunded Mandates Reform Act

    For purposes of the Unfunded Mandates Reform Act of 1995 (Pub. L. 
104-4), as well as Executive Order 12875, this rule does not include 
any Federal mandate that may result in expenditures by State, local, or 
tribal governments, and will not impose an annual burden of $100 
million or more on the private sector.

Federalism Statement

    Executive Order 13132 (August 4, 1999) outlines fundamental 
principles of federalism and requires the adherence to specific 
criteria by Federal agencies in the process of their formulation and 
implementation of policies that have substantial direct effects on the 
States, the relationship between the national government and States, or 
on the distribution of power and responsibilities among the various 
levels of government. This final rule does not have federalism 
implications because it has no substantial direct effect on the States, 
on the relationship between the national government and the States, or 
on the distribution of power and responsibilities among the various 
levels of government. Section 514 of ERISA provides, with certain 
exceptions specifically enumerated, that the provisions of Titles I and 
IV of ERISA supersede any and all laws of the States as they relate to 
any employee benefit plan covered under ERISA. Further, this final rule 
implements certain revisions to annual reporting and disclosure 
regulations which have been in effect in similar form for many years. 
The elimination of superseded regulations from the CFR and correction 
of cross-references ensure consistency between regulations and 
statutory requirements, and do not alter the fundamental requirements 
of the statute with respect to the reporting and disclosure 
requirements for employee benefit plans, and as such has no 
implications for the States or the relationship or distribution of 
power between the national government and the States.

Statutory Authority

    This final rule is promulgated pursuant to the authority contained 
in section 505 of ERISA (Pub. L. 93-406, 88 Stat. 894, 29 U.S.C. 1135) 
and sections 101(b) and 104(a)(1) of ERISA, as amended, and under the 
Secretary of Labor's Order No. 1-87, 52 FR 13139, April 21, 1987.

List of Subjects

29 CFR Part 2520

    Employee benefit plans, Group health plans, Pension plans, Welfare 
benefit plans.

29 CFR Part 2560

    Claims, Employee benefit plans, Law enforcement, Pensions.

    For the reasons set forth above, parts 2520 and 2560 of Chapter XXV 
of Title 29 of the Code of Federal Regulations are amended as follows:

PART 2520--RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE

    1.The authority citation for part 2520 continues to read as 
follows:

    Authority: Secs. 101, 102, 103, 104, 105, 109, 110, 111 (b)(2), 
111(c), and 505, Pub. L. 93-406, 88 Stat. 840-52 and 894 (29 U.S.C. 
1021-1025, 1029-31, and 1135); Secretary of Labor's Order No. 27-74, 
13-76, 1-87, and Labor Management Services Administration Order 2-6.
    Sections 2520.102-3, 2520.104b-1 and 2520.104b-3 also are issued 
under sec. 101(a), (c) and (g)(4) of Pub. L. 104-191, 110 Stat. 
1936, 1939, 1951 and 1955 and, sec. 603 of Pub. L. 104-204, 110 
Stat. 2935 (29 U.S.C. 1185 and 1191c).


Sec. 2520.102-1  [Removed]

    2. Section 2520.102-1 is removed and reserved.

    3. Revise Sec. 2520.102-4 to read as follows:


Sec. 2520.102-4  Option for different summary plan descriptions.

    In some cases an employee benefit plan may provide different 
benefits for various classes of participants and beneficiaries. For 
example, a plan amendment altering benefits may apply to only those 
participants who are employees of an employer when the

[[Page 776]]

amendment is adopted and to employees who later become participants, 
but not to participants who no longer are employees when the amendment 
is adopted. (See Sec. 2520.104b-4). Similarly, a plan may provide for 
different benefits for participants employed at different plants of the 
employer, or for different classes of participants in the same plant. 
In such cases the plan administrator may fulfill the requirement to 
furnish a summary plan description to participants covered under the 
plan and beneficiaries receiving benefits under the plan by furnishing 
to each member of each class of participants and beneficiaries a copy 
of a summary plan description appropriate to that class. Each summary 
plan description so prepared shall follow the style and format 
prescribed in Sec. 2520.102-2, and shall contain all information which 
is required to be contained in the summary plan description under 
Sec. 2520.102-3. It may omit information which is not applicable to the 
class of participants or beneficiaries to which it is furnished. It 
should also clearly identify on the first page of the text the class of 
participants and beneficiaries for which it has been prepared and the 
plan's coverage of other classes. If the classes which the employee 
benefit plan covers are too numerous to be listed adequately on the 
first page of the text of the summary plan description, they may be 
listed elsewhere in the text so long as the first page of the text 
contains a reference to the page or pages in the text which contain 
this information.

    4. Revise paragraph (a) of Sec. 2520.104-4 to read as follows:


Sec. 2520.104-4  Alternative method of compliance for certain successor 
pension plans.

    (a) General. Under the authority of section 110 of the Act, this 
section sets forth an alternative method of compliance for certain 
successor pension plans in which some participants and beneficiaries 
not only have their rights set out in the plan, but also retain 
eligibility for certain benefits under the terms of a former plan which 
has been merged into the successor. This section is applicable only to 
plan mergers which occur after the issuance by the successor plan of 
the initial summary plan description under the Act. Under the 
alternative method, the plan administrator of the successor plan is not 
required to describe relevant provisions of merged plans in summary 
plan descriptions of the successor plan furnished after the merger to 
that class of participants and beneficiaries still affected by the 
terms of the merged plans.
* * * * *

    5. Revise the introductory text in paragraph (a) and paragraphs 
(a)(2), (a)(3), and (c) of Sec. 2520.104-20 to read as follows:


Sec. 2520.104-20  Limited exemption for certain small welfare plans.

    (a) Scope. Under the authority of section 104(a)(3) of the Act, the 
administrator of any employee welfare benefit plan which covers fewer 
than 100 participants at the beginning of the plan year and which meets 
the requirements of paragraph (b) of this section is exempted from 
certain reporting and disclosure provisions of the Act. Specifically, 
the administrator of such plan is not required to file with the 
Secretary an annual or terminal report. In addition, the administrator 
of a plan exempted under this section--
* * * * *
    (2) Is not required to furnish upon written request of any 
participant or beneficiary a copy of the annual report and any terminal 
report, as required by section 104(b)(4) of the Act;
    (3) Is not required to make copies of the annual report available 
for examination by any participant or beneficiary in the principal 
office of the administrator and such other places as may be necessary, 
as required by section 104(b)(2) of the Act.
* * * * *
    (c) Limitations. This exemption does not exempt the administrator 
of an employee benefit plan from any other requirement of title I of 
the Act, including the provisions which require that plan 
administrators furnish copies of the summary plan description to 
participants and beneficiaries (section 104(b)(1)) and furnish certain 
documents to the Secretary of Labor upon request (section 104(a)(6)), 
and which authorize the Secretary of Labor to collect information and 
data from employee benefit plans for research and analysis (section 
513).
* * * * *

    6. Amend Sec. 2520.104-21 by revising paragraphs (a) and (c) to 
read as follows:


Sec. 2520.104-21  Limited exemption for certain group insurance 
arrangements.

    (a) Scope. Under the authority of section 104(a)(3) of the Act, the 
administrator of any employee welfare benefit plan which covers fewer 
than 100 participants at the beginning of the plan year and which meets 
the requirements of paragraph (b) of this section is exempted from 
certain reporting and disclosure provisions of the Act. Specifically, 
the administrator of such plan is not required to file with the 
Secretary a terminal report or furnish upon written request of any 
participant or beneficiary a copy of any terminal report as required by 
section 104(b)(4) of the Act.
* * * * *
    (c) Limitations. This exemption does not exempt the administrator 
of an employee benefit plan from any other requirement of title I of 
the Act, including the provisions which require that plan 
administrators furnish copies of the summary plan description to 
participants and beneficiaries (section 104(b)(1)), file an annual 
report with the Secretary of Labor (section 104(a)(1)) and furnish 
certain documents to the Secretary of Labor upon request (section 
104(a)(6)), and authorize the Secretary of Labor to collect information 
and data from employee benefit plans for research and analysis (section 
513).
* * * * *


Sec. 2520.104-23  [Amended]

    7. Section 2520.104-23 is amended by removing from paragraph (b)(2) 
the term ``104(a)(1)'' and adding, in its place, the term 
``104(a)(6)''.


Sec. 2520.104-24  [Amended]

    8. Section 2520.104-24 is amended by removing from paragraph (b) 
the term ``104(a)(1)'' and adding, in its place, the term 
``104(a)(6)''.


Sec. 2520.104-25  [Amended]

    9. Section 2520.104-25 is amended by removing the term 
``104(a)(1)'' and adding, in its place, the term ``104(a)(6)''.

    10. In Sec. 2520.104-26, revise paragraph (a) to read as follows:


Sec. 2520.104-26  Limited exemption for certain unfunded dues financed 
welfare plans maintained by employee organizations.

    (a) Scope. Under the authority of section 104(a)(3) of the Act, a 
welfare benefit plan that meets the requirements of paragraph (b) of 
this section is exempted from the provisions of the Act that require 
filing with the Secretary an annual report and furnishing a summary 
annual report to participants and beneficiaries. Such plans may use a 
simplified method of reporting and disclosure to comply with the 
requirement to furnish a summary plan description to participants and 
beneficiaries, as follows:
    (1) In lieu of filing an annual report with the Secretary or 
distributing a summary annual report, a filing is made of Report Form 
LM-2 or LM-3, pursuant to the Labor-Management

[[Page 777]]

Reporting and Disclosure Act (LMRDA) and regulations thereunder, and
    (2) In lieu of a summary plan description, the employee 
organization constitution or by-laws may be furnished in accordance 
with Sec. 2520.104b-2 to participants and beneficiaries together with 
any supplement to such document necessary to meet the requirements of 
Secs. 2520.102-2 and 2520.102-3.
* * * * *

    11. In Sec. 2520.104-27, revise paragraph (a) to read as follows:


Sec. 2520.104-27  Alternative method of compliance for certain unfunded 
dues financed pension plans maintained by employee organizations.

    (a) Scope. Under the authority of section 110 of the Act, a pension 
benefit plan that meets the requirements of paragraph (b) of this 
section is exempted from the provisions of the Act that require filing 
with the Secretary an annual report and furnishing a summary annual 
report to participants and beneficiaries receiving benefits. Such plans 
may use a simplified method of reporting and disclosure to comply with 
the requirement to furnish a summary plan description to participants 
and beneficiaries receiving benefits, as follows:
    (1) In lieu of filing an annual report with the Secretary or 
distributing a summary annual report, a filing is made of Report Form 
LM-2 or LM-3, pursuant to the Labor-Management Reporting and Disclosure 
Act (LMRDA) and regulations thereunder, and
    (2) In lieu of a summary plan description, the employee 
organization constitution or bylaws may be furnished in accordance with 
Sec. 2520.104b-2 to participants and beneficiaries together with any 
supplement to such document necessary to meet the requirements of 
Secs. 2520.102-2 and 2520.102-3.
* * * * *


Sec. 2520.104-43  [Amended]

    12. Section 2520.104-43 is amended by removing from paragraph (a) 
the term ``section 104(a)(1)(A)'' and adding, in its place, ``section 
104(a)(1)''.


Sec. 2520.104-44  [Amended]

    13. Section 2520.104-44 is amended by removing from paragraph (d) 
the term ``section 104(a)(1)(A)'' and adding, in its place, ``section 
104(a)(1)''.


Sec. 2520.104a-2  [Removed]

    14. Section 2520.104a-2 is removed and reserved.


Sec. 2520.104a-3  [Removed]

    15. Section 2520.104a-3 is removed and reserved.


Sec. 2520.104a-4  [Removed]

    16. Section 2520.104a-4 is removed and reserved.


Sec. 2520.104a-5  [Amended]

    17-18. Section 2520.104a-5 is amended by removing from paragraph 
(a) the term ``section 104(a)(1)(A)'' and adding, in its place, the 
term ``section 104(a)(1)''; and by removing and reserving paragraph 
(a)(1).


Sec. 2520.104a-7  [Removed]

    19. Section 2520.104a-7 is removed and reserved.


Sec. 2520.104b-1  [Amended]

    20. Section 2520.104b-1 is amended by removing from the third 
sentence of paragraph (b)(3) the term ``plan description''.

    21. In Sec. 2520.104b-2, revise paragraph (g)(1) to read as 
follows:


Sec. 2520.104b-2  Summary plan description.

* * * * *
    (g) Terminated plans. (1) If, on or before the date by which a plan 
is required to furnish a summary plan description or updated summary 
plan description to participants and pension plan beneficiaries under 
this section, the plan has terminated within the meaning of paragraph 
(g)(2) of this section, the administrator of such plan is not required 
to furnish to participants covered under the plan or to beneficiaries 
receiving benefits under the plan a summary plan description.
* * * * *


Sec. 2520.104b-3  [Amended]

    22. Section 2520.104b-3 paragraphs (f) and (g) are removed and 
reserved.

PART 2560--RULES AND REGULATIONS FOR ADMINISTRATION AND ENFORCEMENT

    23. The authority citation for part 2560 continues to read as 
follows:

    Authority: Secs. 502, 505 of ERISA, 29 U.S.C. 1132, 1135, and 
Secretary's Order 1-87, 52 FR 13139 (April 21, 1987).
    Section 2560.502-1 also issued under sec. 502(b)(2), 29 U.S.C. 
1132(b)(2).
    Section 2560.502i-1 also issued under sec. 502(i), 29 U.S.C. 
1132(i).
    Section 2560.503-1 also issued under sec. 503, 29 U.S.C. 1133.


Sec. 2560.502c-2  [Amended]

    24. Section 2560.502c-2 is amended by removing from paragraph 
(a)(1) and (a)(2) the term ``section 101(b)(4)'' each time it appears 
and adding, in its place, the term ``section 101(b)(1)''.

    Signed at Washington, DC, this 22nd day of December, 2001.
Ann L. Combs,
Assistant Secretary, Pension and Welfare, Benefits Administration, U.S. 
Department of Labor.
[FR Doc. 02-140 Filed 1-4-02; 8:45 am]
BILLING CODE 4510-29-P