As 2015 comes to an end, we are pleased to present you with our traditional End of Year Plan Sponsor “To Do” Lists. This year, we are presenting our “To Do” Lists in three separate SW Benefits Updates. Part 1 of the series covered health and welfare plan issues; Part 2 covers qualified retirement plan issues and Part 3 will cover executive compensation issues. Each SW Benefits Update will provide you with a “To Do” List of items on which you may want to take action before the end of 2015 or in early 2016. As always, we appreciate your relationship with Snell & Wilmer and hope that these “To Do” Lists focus your efforts over the next few months.

For your convenience, we have broken the “To Do” List into five categories.

All Qualified Plans “To Do” List

• Adopt Design Changes by the End of the Plan Year: If an employer made any design changes during the year, the plan generally must be amended to reflect those design changes by the last day of the 2015 plan year (i.e., December 31, 2015 for calendar year plans).
• Adopt Plan Restatement if in Cycle E: If a qualified plan is individually designed and falls in Cycle E (i.e., certain governmental plans or the employer identification number associated with the plan ends in 5 or 0), the plan must be restated and submitted for a determination letter on or before January 31, 2016.
• Update Summary Plan Description if Needed: Summary Plan Descriptions (SPDs) must be updated once every five years if the plan has been amended during the five-year period and once every ten years for other plans.
• Review 2016 Plan Limits: Become familiar with the 2016 plan limits. See our November 13, 2015 SW Benefits blog post for more information.

Section 401(k) Plans “To Do” List

• Comply with Items on All Qualified “To Do” Plans List: The items on the All Qualified Plans list also apply to Section 401(k) plans.
• Provide Section 401(k)/401(m) Safe Harbor Notice by December 2, 2015 for Calendar Year Plans: As a reminder, if a plan has a Section 401(k)/401(m) contribution safe harbor, an employer must provide the safe harbor notice at least 30 days, but not more than 90 days, before the beginning of each plan year (i.e., December 2, 2015 for calendar year plans).
• Provide Annual Automatic Enrollment Notice by December 2, 2015 for Calendar Year Plans: If a plan has an automatic contribution arrangement, an eligible automatic contribution arrangement (EACA), a qualified automatic contribution arrangement (QACA), or any combination thereof, an employer must give an annual automatic enrollment notice at least 30 days, but not more than 90 days, before the beginning of each plan year (i.e., December 2, 2015 for calendar year plans).
• Provide Annual Qualified Default Investment Alternative (QDIA) Notice by December 2, 2015 for Calendar Year Plans: If an employer is relying on the QDIA safe harbor, it must give an annual notice at least 30 days, but not more than 90 days, before the beginning of each plan year (i.e., December 2, 2015 for calendar year plans).
• Provide Participant Fee Disclosure Information: Plans are required to provide a comparative chart of detailed investment-related information to plan participants and beneficiaries about the plan’s designated investment alternatives on an annual basis. Department of Labor guidance requires this information to be provided at least annually.
• Provide Participant Benefit Statements: Defined contribution plans must provide individual benefit statements at least annually, although plans that permit participants to direct the investment of their accounts must provide the statement at least quarterly. Defined contribution plans must also provide the statement upon request.
• Distribute Summary Annual Report: Employers should distribute a summary annual report, which is a summary of the information reported on the Form 5500. The summary annual report is generally due nine months after the plan year ends. If the Form 5500 was filed under an extension, the summary annual report must be distributed within two months following the date on which the Form 5500 was due.
• If Adding Qualified Automatic Contribution Arrangement or Eligible Automatic Contribution Arrangement for 2016, Adopt Amendment Before the 2016 Plan Year: Neither a QACA nor an EACA may be adopted mid-year. Accordingly, if an employer wishes to add a QACA or an EACA to its plan for the 2016 plan year, it must adopt an amendment by December 31, 2015 for calendar year plans.
• Consider Amendments to Safe Harbor Plans: The ability to amend a safe harbor plan mid-year is limited. For example, a safe harbor plan cannot be amended mid-year to add automatic enrollment or automatic escalation. To the extent an employer wants to make changes to a safe harbor plan, it needs to do so before year end and, depending on the change, may need to do so before providing the safe harbor notice described above.
• Restate Preapproved 401(k) Plans and Consider Submitting for Favorable Determination Letters: Pre-approved defined contribution plans, including 401(k) plans, must be restated by April 30, 2016. Sponsors of pre-approved plans have between May 1, 2014 and April 30, 2016 to complete these restatements. Failure to restate a plan could jeopardize the plan’s tax qualified status. Plan sponsors of pre-approved plans also should consider whether they want to submit the plan to the IRS for an individual favorable determination letter. Determination letter applications for pre-approved defined contribution plans will be accepted until April 30, 2016.

Defined Contribution Plans (Other Than Section 401(k) Plans) “To Do” List

• Comply with Items on All Qualified Plans “To Do” List: The items on the All Qualified Plans list also apply to defined contribution plans.
• Provide Annual Qualified Default Investment Alternative (QDIA) Notice by December 2, 2015 for Calendar Year Plans: If an employer is relying on the QDIA safe harbor, it must give an annual notice at least 30 days, but not more than 90 days, before the beginning of each plan year (i.e., December 2, 2015 for calendar year plans).
• Provide Participant Fee Disclosure Information: Plans are required to provide a comparative chart of detailed investment-related information to plan participants and beneficiaries about the plan’s designated investment alternatives on an annual basis. Department of Labor guidance requires this information to be provided at least annually.
• Provide Participant Benefit Statements: Defined contribution plans must provide individual benefit statements at least annually, although plans that permit participants to direct the investment of their accounts must provide the statement at least quarterly. Defined contribution plans must also provide the statement upon request.
• Distribute Summary Annual Report: Employers should distribute a summary annual report, which is a summary of the information reported on the Form 5500. The summary annual report is generally due nine months after the plan year ends. If the Form 5500 was filed under an extension, the summary annual report must be distributed within two months following the date on which the Form 5500 was due.
• Restate Preapproved 401(k) Plans and Consider Submitting for Favorable Determination Letters: Pre-approved defined contribution plans, including 401(k) plans, must be restated by April 30, 2016. Sponsors of pre-approved plans have between May 1, 2014 and April 30, 2016 to complete these restatements. Failure to restate a plan could jeopardize the plan’s tax qualified status. Plan sponsors of pre-approved plans also should consider whether they want to submit the plan to the IRS for an individual favorable determination letter. Determination letter applications for pre-approved defined contribution plans will be accepted until April 30, 2016.

Defined Benefit Plans “To Do” List

• Comply with Items on All Qualified Plans “To Do” List: The items on the All Qualified Plans list also apply to defined contribution plans.
• Consider Hybrid Plans Amendments: In September 2014, the IRS issued final regulations on hybrid plans, which are effective for plan years that begin on or after January 1, 2016 (the “2014 Final Hybrid Regulations”). In November 2015, the IRS issued additional final regulations on hybrid plans which extended the due date for certain portions of the 2014 Final Hybrid Regulations. Plan sponsors should review their hybrid plans to determine whether any amendments must be made prior to January 1, 2016. For additional information, please see our blog “Treasury Department and IRS Publish Final Plan Regulations and Announce Extension of Required Amendment Date for Certain Hybrid Plan Provisions.”
• Post Portions of Form 5500 on Company’s Intranet: A plan sponsor of a defined benefit pension plan that maintains an intranet website for the purpose of communicating with employees (and not the public) is required to post portions of the defined benefit plan’s Form 5500 on the intranet.
• Comply with Annual Funding Notice to Participants: Single employer defined benefit plan sponsors must provide participants with an annual notice of the plan’s funding status within 120 days of the end of the plan year to which the notice relates. Plans with fewer than 100 participants do not have to provide the notice until the Form 5500 annual report is due for the plan year.
• Comply with Participant Notice Requirement if Adjusted Funding Target Attainment Percentage is less than 80 Percent: In addition to the annual funding notice described above, Section 101(j) of ERISA requires a plan administrator to provide a notice to participants if the plan is subject to a restriction on payment of benefits. These restrictions become applicable if the plan’s adjusted funding target attainment percentage is less than 80 percent. Plan administrators are not required to provide this notice to participants and beneficiaries in pay status.
• Provide Participant Benefit Statements: Defined benefit plans should provide individual benefit statements every three years or upon request. Alternatively, defined benefit plans may satisfy the requirement by annually notifying participants that the pension benefit statement is available and how a participant may obtain such statement.
• Provide Suspension of Benefits Notice, if Applicable: If required by the terms of the plan, plan administrators must provide notice of the suspension of benefits to participants who continue employment beyond normal retirement age and to rehired retirees. This notice should be given during the first month during which the benefit is suspended.

Section 403(b) Plans “To Do” List

• Adopt Design Changes by the End of the Plan Year: If an employer made any design changes to the plan during the year, it generally must amend its plan to reflect those design changes by the last day of the 2015 plan year (i.e., December 31, 2015 for calendar year plans).
• Update Summary Plan Description if Needed: SPDs must be updated once every five years if the plan has been amended during the five-year period and once every 10 years for other plans. If a Section 403(b) plan is subject to ERISA, the SPD may need to be updated.
• Provide Safe Harbor Notice by December 2, 2015 for Calendar Year Plans: As a reminder, if a Section 403(b) plan uses an ACP contribution safe harbor, an employer must provide the safe harbor notice at least 30 days, but not more than 90 days, before the beginning of each plan year (i.e., December 2, 2015 for calendar year plans).
• Provide Annual Automatic Enrollment Notice by December 2, 2015 for Calendar Year Plans: If a Section 403(b) plan is subject to ERISA and has automatic deferrals, an employer must give an annual automatic enrollment notice at least 30 days, but not more than 90 days, before the beginning of each plan year (i.e., December 2, 2015 for calendar year plans).
• Provide Annual Qualified Default Investment Alternative (QDIA) Notice by December 2, 2015 for Calendar Year Plans: If a Section 403(b) plan is subject to ERISA and an employer is relying on the QDIA safe harbor, it must give an annual notice at least 30 days, but not more than 90 days, before the beginning of each plan year (i.e., December 2, 2015 for calendar year plans).
• Provide Participant Benefit Statements: Section 403(b) plans that are subject to ERISA must provide individual benefit statements at least annually, although plans that permit participants to direct the investment of their accounts must provide the statement at least quarterly. Plans must also provide the statement upon request.
• Distribute Summary Annual Report: Section 403(b) plans that are subject to ERISA must distribute a summary annual report, which is a summary of the information reported on the Form 5500. The summary annual report is generally due nine months after the plan year ends. If the Form 5500 was filed under an extension, the summary annual report must be distributed within two months following the date on which the Form 5500 was due.
• If Adding an ACP Contribution Safe Harbor for 2016, Adopt Amendment Before the 2016 Plan Year: ACP contribution safe harbors may not be adopted mid-year. Accordingly, if an employer wishes to add an ACP contribution safe harbor to its Section 403(b) plan for the 2016 plan year, it must adopt an amendment by December 31, 2015 for calendar year plans.
• Comply with Form 5500 Reporting Requirements: As a reminder, effective for plan years beginning on or after January 1, 2009, Section 403(b) plans subject to ERISA must comply with standard Form 5500 filing requirements, including an annual plan audit for large plans (i.e., plans with 100 or more participants) and detailed financial information for small Section 403(b) plans (i.e., plans with fewer than 100 participants).