How Does the ERISA Reporting Exemption Work?Small unfunded or insured welfare benefit plans with fewer than 100 participants (at the start of the plan year) are exempted from some of the reporting and disclosure requirements. Those plans do not have to:
1. provide summary plan descriptions (upon request), summaries of material modifications (upon request), and annual reports to the Labor Department;
2. furnish participants with summary annual reports; and
3. provide or make available for inspection copies of plan descriptions or annual reports upon request of plan participants or beneficiaries.
In addition to having fewer than 100 participants, benefits must pay benefits through the employer's (or employee organization's) general assets or insurance contracts or health maintenance organizations to qualify for this reduction in reporting burden.
These plans are not relieved of their other reporting obligations, such as providing summary plan descriptions to plan participants and beneficiaries and furnishing information to the Labor Department upon request.
<p>Small unfunded or insured welfare benefit plans with fewer than 100 participants (at the start of the plan year) are exempted.</p>