Common use of Reporting And Disclosure Rules Apply Clause in Contracts

Reporting And Disclosure Rules Apply. Participants are entitled to a summary plan description (SPD) and a summary annual report. The failure to provide an SPD upon an employee’s request can result in the payment of a penalty to the employee of up to $100 per day. Perhaps more significantly, an annual report (Form 5500) must be filed for each applicable year. Failure to do so can result in the imposition of a fine of up to $1,125 per day per delinquent report unless reasonable cause for not filing can be demonstrated.8