4155 / What information must be included in the “general disclosures” section of a 404(a)(5) disclosure?

On or before the date that a plan participant or beneficiary can first direct their investments, and annually thereafter, the plan administrator must provide them with “General Disclosures” describing:

(1)     an explanation of the circumstances under which participants and beneficiaries may give investment instructions;

(2)     an explanation of any specified limitations on such instructions under the terms of the plan, including any restrictions on transfer to or from a designated investment alternative;

(3)     a description of or reference to plan provisions relating to the exercise of voting, tender, and similar rights appurtenant to an investment in a designated investment alternative as well as any restrictions on such rights;

(4)     an identification of any designated investment alternatives offered under the plan;

(5)     an identification of any designated investment managers; and

(6)     a description of any “brokerage windows,” “self-directed brokerage accounts,” or similar plan arrangements that enable participants and beneficiaries to select investments beyond those designated by the plan.

If there are any changes to the disclosed information, the participant or beneficiary must be given notice of the change at least 30, but no more than 90 days, before the effective date of the change. However, if circumstances present themselves to prevent disclosing changes to this information within the appropriate time frame, the plan administrator must issue a notice describing the changes as soon as practicable.