• Retirement plan administrators must ensure participants and beneficiaries are aware of their rights and responsibilities for their accounts.

The investment of plan assets is a fiduciary act governed by the fiduciary standards in ERISA 404(a)(1)(A) and (B), which require plan fiduciaries to act prudently and solely in the interest of the plan’s participants and beneficiaries.

When a plan allocates investment responsibilities to participants or beneficiaries, the plan administrator must take steps to ensure that such participants and beneficiaries, on a regular and periodic basis, are made aware of their rights and responsibilities with respect to the investment of assets held in, or contributed to, their accounts. The administrator must provide sufficient information regarding the plan and the plan’s investment options, including fee and expense information, to allow participants and beneficiaries to make informed decisions regarding the management of their individual accounts.

Plan-related information

The first category of information that must be disclosed is plan-related information. This general category is further divided into three subcategories as follows:

1. General plan information
   General plan information consists of information about the structure and mechanics of the plan, such as an explanation of how to give investment instructions under the plan, a current list of the plan’s investment options, and a description of any “brokerage window” or similar arrangement that enables the selection of investments beyond those designated by the plan.
2. Administrative expenses information
   This information includes an explanation of any fees and expenses for general plan administrative services that may be charged to or deducted from all individual accounts. Examples include fees and expenses for legal, accounting, and recordkeeping services.
3. Individual expenses information
   An explanation of any fees and expenses that may be charged to or deducted from the individual account of a specific participant or beneficiary based on the actions taken by that person. Examples include fees and expenses for plan loans and for processing qualified domestic relations orders.

The information in these three subcategories must be given to participants on or before the date they can first direct their investments, and then again annually thereafter.

In addition to the plan-related information that must be furnished upfront and annually, participants must receive statements, at least quarterly, showing the dollar amount of the plan-related fees and expenses (whether “administrative” or “individual”) charged to or deducted from their individual accounts, along with a description of the services for which the charge or deduction was made. These specific disclosures may be included in quarterly benefit statements required under ERISA 105.

Investment-related information

The second category of information that must be disclosed is investment-related information. This category contains several subcategories of core information about each investment option under the plan, including:

1. Performance data
   Participants must be provided specific information about historical investment performance. One-, 5- and 10-year returns must be provided for investment options, such as mutual funds, that do not have fixed rates of return. For investment options that have a fixed or stated rate of return, the annual rate of return and the term of the investment must be disclosed.
2. Benchmark information
   For investment options that do not have a fixed rate of return, the name and returns of an appropriate broad-based securities market index over 1-, 5-, and 10-year periods (matching the performance data periods) must be provided. Investment options with fixed rates of return are not subject to this requirement.
3. Fee and expense information
   For investment options that do not a have a fixed rate of return, the total annual operating expenses expressed as both a percentage of assets and as a dollar amount for each $1,000 invested, and any shareholder-type fees or restrictions on the participant’s ability to purchase or withdraw from the investment must be provided.
4. Website address
   Investment-related information includes a website address that is sufficiently specific to provide participants and beneficiaries access to additional information about the investment options for workers who want more or updated information.
5. Glossary
   Investment-related information includes a general glossary of terms to assist participants and beneficiaries in understanding the plan’s investment options, or a website address that is sufficiently specific to provide access to such a glossary.
6. Comparative format requirement
   Investment-related information must be provided to participants or beneficiaries on or before the date they can first direct their investments, and then again annually thereafter. It also must be provided in a chart or similar format designed to facilitate a comparison of each investment option available under the plan.
7. Miscellaneous
   Plan administrators have some protection from liability for the completeness and accuracy of information provided to participants if the plan administrator reasonably and in good faith relies upon information provided by a service provider. After participants have invested in a particular investment option, they must be provided any materials the plan receives regarding voting, tender, or similar rights in the option. Upon request, the plan administrator must also provide prospectuses, financial reports, and statements of valuation and of assets held by an investment option.

The general disclosure regulation in 29 CFR 2520.104b-1 applies to material provided under this regulation, including the safe harbor for electronic disclosures at Paragraph (C).