Form 5500? SAR Due Soon

Health and welfare plans that file Form 5500 with the U.S. Department of Labor may have a summary annual report (SAR) reporting requirement due by the end of September.

ERISA requires administrators of health plans to provide information about plan operation to participants. This information is set forth in the SAR which describes

• administrative expenses incurred by the plan
• amount of benefits paid to participants and beneficiaries;
• total value of plan assets; and
• right to receive a copy of the full annual report, or any part thereof.

If a health plan is required to file Form 5500, it is required to distribute a SAR to plan participants. If a plan is exempted from the Form 5500 filing requirements, it is exempted from the SAR distribution requirement.

A SAR must be furnished to participants within 9 months after the close of the plan year, or within 2 months after the extension deadline for filing Form 5500, if applicable. For calendar year plans that file Form 5500, a SAR must be distributed by the end of September.