The U.S. Department of Labor updated the form for summary annual reports relating to welfare benefit plans.
A summary annual report (SAR) summarizes information relating to the financial status of an ERISA plan. The information that must be captured in an SAR is governed by the Department of Labor, and the DOL has a model SAR that should be followed to disseminate information. SARs are required each year for ERISA-covered pension plans, 401(k) plans and welfare plans, unless an exemption applies.
A totally unfunded, insured welfare plan is not required to distribute an SAR. If a plan is self-funded, benefits are paid out of general assets (not held in trust) and the plan covers less than 100 participants, no SAR is required. If a welfare plan does cover more than 100 participants at the beginning of the plan year, a SAR must be distributed. SARs must be furnished within 9 months after the end of the plan year (September 30 for calendar year plans).
A link to the updated template SAR may be accessed by clicking here and navigating to Model Notices and Disclosures.
