Employee Access to Pension Info Is a Must

Under the Employee Retirement Income Security Act of 1974 (ERISA), employees must have access to the summary descriptions of their pension plans: who’s eligible, who’s not, when do you become vested, where do you go if you want additional information—all the details as to how the plan works. HR managers use a wide variety of communication methods for conveying this information—from pamphlets to newsletters.

For ERISA-covered plans, though, it’s not unrealistic to place this information in your company handbook. Some companies do and some don’t. A lot depends on how amenable the process is to change. Pension stuff like summary annual reports and material changes can give an HR manager headaches. Some companies have found it more efficient to distribute the material separately from the handbook, while others have turned to the Internet.

Whichever option you choose, it’s important to state that temporary employees are excluded from the benefit plan. That way, the end result remains the same—a well-informed workforce (under ERISA guidelines) is a happier workforce.