§ 1025. Reporting of participant’s benefit rights
(a)
Requirements to provide pension benefit statements
(1)
Requirements
(A)
Individual account plan
The administrator of an individual account plan (other than a one-participant retirement plan described in section
1021
(i)(8)(B) of this title) shall furnish a pension benefit statement—
(i)
at least once each calendar quarter to a participant or beneficiary who has the right to direct the investment of assets in his or her account under the plan,
(B)
Defined benefit plan
The administrator of a defined benefit plan (other than a one-participant retirement plan described in section
1021
(i)(8)(B) of this title) shall furnish a pension benefit statement—
(i)
at least once every 3 years to each participant with a nonforfeitable accrued benefit and who is employed by the employer maintaining the plan at the time the statement is to be furnished, and
Information furnished under clause (i) to a participant may be based on reasonable estimates determined under regulations prescribed by the Secretary, in consultation with the Pension Benefit Guaranty Corporation.
(2)
Statements
(A)
In general
A pension benefit statement under paragraph (1)—
(B)
Additional information
In the case of an individual account plan, any pension benefit statement under clause (i) or (ii) of paragraph (1)(A) shall include—
(i)
the value of each investment to which assets in the individual account have been allocated, determined as of the most recent valuation date under the plan, including the value of any assets held in the form of employer securities, without regard to whether such securities were contributed by the plan sponsor or acquired at the direction of the plan or of the participant or beneficiary, and
(ii)
in the case of a pension benefit statement under paragraph (1)(A)(i)—
(I)
an explanation of any limitations or restrictions on any right of the participant or beneficiary under the plan to direct an investment,
(II)
an explanation, written in a manner calculated to be understood by the average plan participant, of the importance, for the long-term retirement security of participants and beneficiaries, of a well-balanced and diversified investment portfolio, including a statement of the risk that holding more than 20 percent of a portfolio in the security of one entity (such as employer securities) may not be adequately diversified, and
(3)
Defined benefit plans
(A)
Alternative notice
In the case of a defined benefit plan, the requirements of paragraph (1)(B)(i) shall be treated as met with respect to a participant if at least once each year the administrator provides to the participant notice of the availability of the pension benefit statement and the ways in which the participant may obtain such statement. Such notice may be delivered in written, electronic, or other appropriate form to the extent such form is reasonably accessible to the participant.
(b)
Limitation on number of statements
In no case shall a participant or beneficiary of a plan be entitled to more than 1 statement described in subparagraph (A)(iii) or (B)(ii) of subsection (a)(1), whichever is applicable, in any 12-month period.
(c)
Individual statement furnished by administrator to participants setting forth information in administrator’s Internal Revenue registration statement and notification of forfeitable benefits
Each administrator required to register under section
6057 of title
26 shall, before the expiration of the time prescribed for such registration, furnish to each participant described in subsection (a)(2)(C) of such section, an individual statement setting forth the information with respect to such participant required to be contained in the registration statement required by section
6057
(a)(2) of title
26. Such statement shall also include a notice to the participant of any benefits which are forfeitable if the participant dies before a certain date.