SMM and SAR Deadlines for Employer Health Plans
ERISA requires employers to keep participants informed after a plan changes and, for plans that file a Form 5500, to send a summary of that filing each year. Both have deadlines that are easy to miss. Not sure if a plan has to file? See the Form 5500 small plan exemption.
The SMM Rule
The rule is at 29 CFR 2520.104b-3.
What An SMM Is
A summary description of any material modification to the plan, or any change to information required in the summary plan description, furnished to each participant and each beneficiary receiving benefits. Enter your own dates in our plan change notice deadline calculator.
The Deadline
Not later than 210 days after the close of the plan year in which the modification or change was adopted. For a calendar-year plan, that puts the due date in late July of the following year. Put the date on the compliance calendar as soon as a change is adopted.
Retroactive Changes
The deadline is not affected by retroactive application of an amendment to a prior plan year. A modification does not occur before it is adopted. In practice, the clock runs from the year the change was adopted, not from the year it takes effect. Keep dated board or management approvals so the adoption date can be shown.
Future Effective Dates
A plan that adopts an amendment taking effect in the future must disclose within 210 days after the close of the plan year in which it was adopted. If a change is adopted this year but takes effect later, the notice clock is still tied to the year of adoption. Treat the adoption date as the trigger, and check with counsel for unusual timing.
Rescinded Changes
A summary is not required if the change is rescinded or otherwise does not take effect. Keep a note in the file when an amendment is withdrawn or never takes effect, along with the dates. That record shows why no summary was sent and supports the plan’s compliance file.
Plain Language
The summary must be written in a manner calculated to be understood by the average plan participant. Avoid dense legal wording and explain what changed, who is affected and what participants need to do. Where the plan covers many employees, write for the average reader and use short, direct sentences.
The SAR Rule
The rule is at 29 CFR 2520.104b-10.
What A SAR Is
A summary of the plan’s annual report, furnished each year to participants and to beneficiaries receiving benefits, other than beneficiaries under a welfare plan. The SAR is a short, plain-language summary of the plan’s annual report, so participants can see the plan’s basic financial information. It is separate from the Form 5500 itself, which is filed with the government.
The Deadline
Within nine months after the close of the plan year. Many plans are on a calendar year, which puts the SAR date near the end of September. Check the plan year and the plan’s own fiscal year, since the due date follows the plan year end.
Extensions
When the IRS has granted an extension for filing the annual report, the SAR is due within two months after the close of the extension period. If the Form 5500 filing is extended, the SAR date moves with it. Track the extension date and the SAR date together, so both are on the calendar and neither is missed.
Trust Years
For certain welfare plans, the nine months run from the close of the fiscal year of the trust or entity that files the annual report. Trust-funded welfare plans can have a different fiscal year from the plan year, which moves the due date. Confirm with the plan’s accountant or counsel which year end applies to your plan.
Tied To The Form 5500
The SAR summarizes the annual report, so a plan with no Form 5500 filing has nothing to summarize. See our small plan exemption guide and confirm with your administrator whether a SAR applies.
Delivery Method
Furnishing follows the ERISA delivery rules in 29 CFR 2520.104b-1. The ERISA delivery rules allow certain methods, such as mail and, in some cases, electronic delivery. Check the plan’s delivery approach with counsel, particularly if the plan uses electronic delivery for employees without regular computer access.
Build It Into the Calendar
These documents are late because no one owns them.
Log Every Amendment
Keep a running list of plan changes with adoption dates so the SMM clock is known. Record the date, a short description of the change, who approved it and the date it was communicated. A simple spreadsheet or shared file works well, and it makes year-end reviews much faster.
Pair With Renewal
Review renewal changes against the SPD to see whether an SMM is needed. When a renewal brings new copays, carriers or plan features, compare the changes with the current plan description. If the summary no longer matches, the change may call for a modification notice.
Set A Year-End Check
Add the 210-day date for each changed plan year to the calendar. At the close of each plan year, list the amendments that were adopted and mark the date the notice is due. Review the list each quarter so a deadline is not missed during a busy period.
Link To The 5500
Put the SAR date beside the 5500 filing and extension dates. Build one calendar that shows the 5500 filing date, any extension and the SAR due date for each plan. Working from a single calendar helps benefits and finance teams stay in step.
Keep Delivery Proof
Retain proof that participants received the documents. Keep a copy of the mailing list, a delivery record or an electronic delivery log for each document. If a participant or an agency asks, the plan can show when and how the summary was furnished.
Watch Your Wrap
If your SPD is a carrier certificate or a wrap document, the SMM attaches to that document. See plan documents.
Questions We Get About SMMs and SARs
What is the SMM deadline?
210 days after the close of the plan year in which the material modification was adopted.
Does a retroactive amendment change the SMM deadline?
No. The deadline runs from the plan year in which the change was adopted.
What is the SAR deadline?
Nine months after the close of the plan year, extended to two months after the extension period if the IRS granted one for the annual report.
Does every health plan need a SAR?
A SAR summarizes the annual report, so it depends on whether the plan files one. Confirm with your administrator.
Who gets the SAR?
Participants and beneficiaries receiving benefits, other than beneficiaries under a welfare plan.
Do we need an SMM if the change is rescinded?
No. A summary is not required if the change does not take effect.
How is an SMM different from an SBC?
The SMM is an ERISA plan-document notice. The SBC is the ACA coverage summary. See our SBC guide.
Who is the plan administrator for these?
Usually the employer as plan sponsor, unless the plan names another. Check the plan document.
Is this legal advice?
No. This page is general information, not legal advice. Rules change and facts differ, so confirm your situation with your attorney or tax advisor.
Related Guides
Related reading: Reading Your Plan Documents · ERISA for Employer Health Plans · Form 5500 Small Plan Exemption · Form 5500 Extension · Summary of Benefits and Coverage
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Laws and rules referenced
29 C.F.R. § 2520.104b-3 and 29 U.S.C. § 1022 — Summary of material modifications: due within 210 days after the plan year, or 60 days for a material reduction in covered services or benefits.
29 C.F.R. § 2520.104b-10 — Summary annual report.
This page is general information, not legal or tax advice. Rules change and facts matter, so confirm your situation with counsel or a qualified advisor.
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