How Long Should Employers Keep their ERISA Documents?
To round out our ERISA 50th anniversary series, this Benefits Boost focuses on ERISA’s recordkeeping requirements. ERISA requires plan sponsors to maintain all records documenting the accuracy of Form 5500 required reporting information as well as records with information that would have been required but for a reporting exemption. Because the Department of Labor (DOL) has not issued guidance on what exactly those records should be, ERISA plans have had to rely on informal remarks, court cases, and advisory opinions to determine which documents to retain. ERISA requires plan sponsors to keep records and make them available for examination for a period of not less than six years after the filing date of the Form 5500 based on those records. Where an exemption or simplified reporting requirement applies (e.g., small, unfunded employers), the records must be kept for six years after the date the Form 5500 would have been filed but for the exemption or simplified reporting requirement. Due to the increased use of electronic media and electronic recordkeeping, the ERISA Advisory Council issued a report to the Secretary of Labor in 2023 highlighting how the shift from paper to electronic recordkeeping presents significant challenges and implications for compliance with ERISA's record retention requirements, necessitating clear guidance, robust controls, and education for plan sponsors and fiduciaries to ensure data reliability, long-term availability, and the protection of participants' benefits. No guidance has been released as a result of this report, however, as electronic media and AI become more prevalent, it is expected that government agencies will, at some point, provide guidance.
As a reminder, documents that should be retained include, but are not limited to:
• Forms 5500 and attached Schedules, as well as any delinquent filer documentation, summary annual reports (SARs), and audited financial statements, if required.
• Plan documents, and/or wrap documents, summary plan descriptions, and summaries of material modification or reduction. For more information on ERISA Record Retention requirements, see our resource here.
The intent of this article is to provide general information on employee benefit issues. It should not be construed as legal advice and, as with any interpretation of law, plan sponsors should seek proper legal advice for application of these rules to their plans.
The intent of this article is to provide general information on employee benefit issues. It should not be construed as legal advice and, as with any interpretation of law, plan sponsors should seek proper legal advice for application of these rules to their plans.
Source(s): Arthur J. Gallagher, received on November 19, 2024; ERISA Record Retention Requirements, accessed on November 20, 2024