« PreviousContinue »
and the agent, broker, surety or other any description or report or to certify company since the objectivity of either any information therefor under this Act the plan or the agent, bruker or surety shall maintain records on the matters of may be influenced by the “party in which disclosure is required which will interest”.
provide in sufficient detail the necessary (c) The application of the principles basic information and data from which discussed in this section is illustrated by the documents thus required may be verithe following examples:
fied, explained, or clarified, and checked Example (1). B, a broker, renders actuarlal for accuracy and completeness, and shall and consultant services to plan P. B has also include vouchers, worksheets, receipts, procured a group life insurance policy for and applicable resolutions, and shall keep plan P. B may also place a bond for P with such records available for examination surety company S, provided that neither B
for a period of not less than five years nor P has any significant control or financial
after the filing of the documents based interest, direct or indirect, in S and provided
on the information which they contain." that neither P nor any other “party in interest" in P, e.g., an officer of the plan, has any
(b) The provisions of section 11 of the significant control or financial interest, dl- Act are subject to the investigatory aurect or indirect, in B or S.
thority of the Director, Office of LaborExample (2). I, a life insurance company, Management and Welfare-Pension Rehas provided a group life insurance policy for ports, embodied in section 9 of the Act. plan P. I is affiliated with S, & surety com
The correctness of an interpretation of pany, and has a significant financial interest
these provisions can be determined fior control in S. P is not prohibited from obtaining a bond from S since I's affiliation with
nally and authoritatively only by the S does not ordinarily, in and of itself, affect courts. It is necessary, however, for the the objectivity of P in procuring the bond or Labor-Management Services Administhe objectivity of 8 in bonding P's personnel. trator (hereafter referred to as "the AdHowever, if any other “party in Interest" as ministrator") to reach informed concludefined in Section 3(13) of the Act, such as
sions as to the meaning of the law to the employer whose employees are covered by
enable him to carry out his duties of P, should have a significant financial interest
administration and enforcement. The or control in S, S could not write the bond for P, since the employer's interest affects the
interpretations of the Administrator objectivity of P and S.
contained in this part, which are issued
upon the advice of the Solicitor of LaPART 486-GENERAL STATEMENT bor, indicate the construction of the law CONCERNING THE RETENTION OF
which will guide the Administrator in RECORDS PROVISIONS OF THE
performing his duties unless and until
he is directed otherwise by authoritative WELFARE AND PENSION PLANS
rulings of the courts or unless and until DISCLOSURE ACT
he subsequently decides that his prior inSec.
terpretation is incorrect. Under section 486.1 Introductory statement.
12 of the Act, the interpretations con486.2 Persons who must retain records.
tained in this part, if relied upon in good 486.3 Records to be retained.
faith, will constitute a defense in any 486.4 Manner of keeping records. 486.5 Period records must be maintained.
action or proceeding based on any act or
omission in alleged violation of section 11 AUTHORITY: The provisions of this part 486
of the Act. The omission, however, to Issued pursuant to sec. 5, 72 Stat. 999, 76 Stat. 36, sec. 11, 76 Stat. 38; 29 U.S.C. 304, 308b;
discuss a particular problem in this part, Secretary's Order 24-63 (28 F.R. 9172), and or in interpretations supplementing it, Secretary's Order 26-63 (28 F.R. 9173). should not be taken to indicate the adopSOURCE: The provisions of this Part 486
tion of any position by the Administraappear at 28 F.R. 14413, Dec. 27, 1963, unless tor with respect to such problem or to otherwise noted.
constitute an administrative interpre§ 486.1 Introductory statement.
tation or practice. Interpretations of
the Administrator with respect to section (a) This part reflects interpretive
11 are set forth in this part to provide positions of the Department of Labor
those affected by the provisions of the with respect to several aspects of the
Act with a "practical guide • as to record retention requirements of section
how the office representing the public in11 of the Welfare and Pension Plans Dis
terest in its enforcement will seek to apclosure Act (72 Stat. 997, 76 Stat. 35; 29
ply it” (Skidmore v. Swift & Co., 323 U.S. U.S.C. 301, et seq.). This section pro- 134, 138). vides that: “Every person required to file (c) To the extent that prior opinions and interpretations relating to section would tend to support information re11 are inconsistent with the principles quired in any report under the Act. stated in this part, they are hereby re- (c) Records maintained shall also inscinded and withdrawn.
clude, where appropriate, information § 486.2 Persons who must retain rec
certified to the Administrator by an inords.
surance carrier or service or other orga(a) Section 11 of the Welfare and
nization. Other records such as payrolls Pension Plans Disclosure Act applies to
from contributing employers, which the (1) Any person or persons required to
reporting person, trustee, or organiza
tion, as described in § 486.2 obtains in file any plan description or annual re
the regular course of its operations, to port under section 6 or section 7 of the
the extent such records may be used for Act; (2) Any person or persons who may be
said verifying or checking shall also be required to publish a report upon re
retained. quest pursuant to section 7(a) of the § 486.4 Manner of keeping records. Act; and
(a) Records must be kept in reason(3) Any insurance carrier or service able order, in a safe and accessible place or other organization required under and in such a manner that they may be section 7(g) of the Act to certify any in- readily inspected and examined by th formation necessary for the preparation Director, Office of Labor-Management or filing of any such description or and Welfare-Pension Reports or his duly report.
authorized representative. (b) The statutory duty on such per- (b) The preservation of records on sons to maintain records cannot be microfilm for the periods required by the avoided by contract, delegation or other- Act will satisfy the requirements relatwise. Thus, if the administrator of a ing to the retention of records, provided plan arranges with an independent con- that adequate projection or other viewtractor (such as a corporate trustee or ing equipment is available for inspecting benefit plan consultant) to perform the microfilm and provided further that functions with respect to the plan and, the microfilmed records are clear repursuant to the arrangement, such in- productions of the original records, and dependent contractor prepares or re- identifiable as to dates. ceives the type of records contemplated (c) Nothing in this section precludes by $ 486.3 and keeps physical custody the use of punch cards or magnetic tape of such records, the statutory require- for processing records; Provided, howment to see that such records are re- ever, That where records of original tained for the required period remains entry or worksheets are converted to with the administrator and he must punch cards or tape, the original records make such agreements and arrange- and worksheets must be retained for the ments with the independent contractor required period. as are necessary to insure that they are
§ 486.5 Period records must be main. so retained.
tained. $ 486.3 Records to be retained.
Persons described in 486.2 are re(a) The records required to be re- quired to maintain the described records tained are all documents which will pro- for a period of not less than five years vide in sufficient detail the necessary after the filing of the documents based basic information and data from which on the information which they contain. the description and reports which are It should be noted that even though a required or may be required under the plan administrator need not publish an Act may be verified, explained or clari- annual report pursuant to section 7(a) fied, and checked for accuracy and com- of the Act (unless specifically required pleteness.
to do so), because such plan covers more (b) Such records include (but are not than 25, but fewer than 100 participants, limited to) resolutions and matters re- every person or organization described lating to the plan for which a descrip- in § 486.2 must retain for a period of tion or annual report is or may be re- not less than five years after the date quired to be filed, journals, ledgers, that an annual report would have been checks, invoices, bank statements, con- due (but for the exemption) the records tracts, agreements, vouchers, worksheets, described in 486.3 which relate to inreceipts, claim records and payrolls of formation' which would have been reany party described in $ 486.2 which quired in such report.
A list of current CFR volumes, a list of superseded CFR volumes, and a list of CFR titles, subtitles, chapters, subchapters and parts are included in the subject index volume to the Code of Federal Regulations which is published separately and revised annually.
Table of CFR Titles and Chapters
Table of CFR Titles and Chapters
Title 1-General Provisions
Appendix A—Guide to record retention requirements
Title 2—The Congress
Chapter 1-Parallel Table of Statutory Authorities and Rules
Title 3-The President
I General Accounting Office
fice—Department of Justice)
Title 5-Administrative Personnel
I Civil Service Commission
V International Organizations Employees Loyalty Board
X National Capital Housing Authority
Title 6- [Reserved]