Summary Annual Report

The Summary Annual Report (SAR) is a summary of the information submitted on the Form 5500 and notifies participants (employees) of their right to receive a copy of the full annual report.  

Requirements

• The SAR is due to plan participants for calendar year ERISA plans that were required to file a Form 5500, unless an application for an extension was timely filed.  

• The SAR is required to be provided to participants by the last day of the 2nd month after the Form 5500 deadline.

• A totally unfunded welfare plan, regardless of size, need not provide a SAR. This is true even though large unfunded welfare plans (with 100 or more covered participants) must file a Form 5500, but are exempt from the requirement to file financial schedules or attach an accountant opinion.

• In contrast, large insured plans are subject to the SAR requirement because no exemption exists under the SAR regulation for such plans.

SAR Extension

• For plans on extension, the SAR is due 2.5 months after the Form 5500 is due (or filed, if earlier).

• The SAR must be furnished within 2 months after Form 5500 is filed.

SPD or “Wrap” Document to Participants

• For new "wrap" SPDs (Summary Plan Description), send within 120 days after the start of the new ERISA plan. 

• Ongoing distribution: the "wrap" SPD should be sent within 90 days of an employee's plan enrollment, and furnished to all participants every 10 years unless there are changes, then it must be sent every 5 years.