Employee Benefits Security Administration Releases Field Assistance Bulletin on Use of Summary Prospectus Requirements

Washington - The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) today released Field Assistance Bulletin (FAB) 2009-03 that describes the circumstances under which a participant-directed individual account plan may satisfy the prospectus delivery requirements of section 404(c) of the Employee Retirement Income Security Act by furnishing a “Summary Prospectus” pursuant to requirements established by the Securities and Exchange Commission (SEC).

Under new SEC rules, the Summary Prospectus is a short-form document, written in plain English and user-friendly format. The document’s contents provide a summary of key information about a mutual fund that is useful to participants and beneficiaries in evaluating and comparing their plan investment options. In addition, if a participant or beneficiary wishes additional information, the Summary Prospectus provides an Internet address that leads directly to the broader statutory prospectus as well as a telephone number and e-mail address for obtaining free of charge in paper or by email the statutory prospectus and other information.

The guidance provided by the FAB enables plans to take advantage of updated prospectus disclosure changes adopted by the SEC to improve investor disclosure materials.

The FAB is part of the department’s ongoing compliance assistance program to help employers, plan officials, service providers and others comply with ERISA. Field Assistance Bulletins are available on the Internet at www.dol.gov/ebsa.