Which of the following is NOT listed as subject to 502(c)(1) penalties?

Which of the following is NOT listed as subject to 502(c)(1) penalties?

• A. SPD
• B. Annual report
• C. Budget proposal
• D. Bargaining or trust agreement

Answer: (C)

502(c)(1) penalties apply when a plan administrator fails to furnish documents that ERISA requires to be provided to participants or beneficiaries. The items typically required to be shared include the Summary Plan Description (SPD), the plan’s annual report (Form 5500), and the actual plan documents such as the bargaining or trust agreement. A budget proposal, however, is not a document that ERISA requires to be furnished to participants or beneficiaries, and it isn’t listed among the items subject to these penalties. So the budget proposal is the one that is not subject to 502(c)(1) penalties.

502(c)(1) penalties apply when a plan administrator fails to furnish documents that ERISA requires to be provided to participants or beneficiaries. The items typically required to be shared include the Summary Plan Description (SPD), the plan’s annual report (Form 5500), and the actual plan documents such as the bargaining or trust agreement. A budget proposal, however, is not a document that ERISA requires to be furnished to participants or beneficiaries, and it isn’t listed among the items subject to these penalties. So the budget proposal is the one that is not subject to 502(c)(1) penalties.