Supplemental Tables for 1210-0039 07

1

Summary Plan Description Requirements under ERISA – Supplemental Document

OMB Number 1210-0039

January 2007

Table 1 – Input Data
Description	Small pension	Large pension	Customized welfare	Other welfare
Share of participants entering plan in the last year	0.07	0.07	0.07	0.07
Total number of pension plans or distinct group health products	630,386.00	69,626.00	2,582.42	8,450.00
Active participants	8,820,000.00	64,311,000.00	.	62,300,000.00
Retired or separated participants receiving benefits	130,164.00	10,583,043.00	.	3,900,000.00
Participants whose benefits were distributed in a single lump sum during year	54,791.00	935,818.00	0.00	0.00
Retired or separated participants entitled to future benefits	1,914,000.00	20,537,000.00	.	.
Deceased parts whose beneficiaries are receiving or entitled to benefits	21,000.00	1,750,000.00	0.00	0.00
Share of all plans with effective dates in the last 12 months	0.05	0.02	0.02	0.05
Number of hours required to create a new SPD	10.00	10.00	10.00	10.00
Number of hours required to update an existing SPD	4.00	4.00	4.00	4.00
Total labor cost per hour for lawyer to update an SPD	109.00	109.00	109.00	109.00
Cost of printing an SPD	2.50	2.50	4.00	4.00
Cost of mailing an SPD	1.70	1.70	1.70	1.70
Share of plans amended in a one-year period	0.18	0.37	0.36	0.20
Share of plans amended in a five-year period	0.66	0.89	0.65	0.40
Share of plans amended in a ten-year period	0.74	0.92	0.78	0.48

Table 2 - Input Parameters
Description	Value
Share of participants with access to computers at work	0.29
Additional share of participants with access at home, without access at work	0.52
Share of plans that would seek consent to send disclosures to participants with access to computers at work	0.80
Share of plans that would seek consent to send disclosures to participants with access to computers at home only	0.60
Share of participants with access at home only who would consent	0.75
Share of plans using service providers	0.95
Share of plans preparing SPDs in house	0.05
Share of large plans using service providers to update SPD and to prepare SMM	0.75
Share of small plans using service providers to update SPD and to prepare SMM	1.00
Minute per part to distribute SPDs	0.50
Minute per part to distribute SMMs	0.50
Share of all distributions of paper documents done by mail	0.50
Average hours to prepare an SMM	3.00
Cost per participant to distribute SMMs	0.20
Cost per participant to mail SMMs	0.39
Share of participants entering plan in the last year	0.07
Share of participants requesting SPDs in an SMM year	0.20
Share of participants requesting SPDs in non-SMM years	0.05
Total labor cost per hour for mail operators (dollars per hour)	22.03
Average number of years that separated vesting participants remain in that status	20.00
Average number of years that retirees remain in that status	20.00
Average number of years that beneficiaries remain in that status	20.00
Share of health plan retirees in retiree only health plans	0.15

Table 3 – Summary of Total Annual Cost and Hour Burden
Burden Type	Small pension	Large pension	Welfare	Total
Total Cost Burden (Thousands of dollars)	104,759	95,119	58,035	257,914
Preparation	96,754	12,673	1,616	111,044
SPDs	67,474	6,203	926	74,603
SMMs	29,280	6,470	690	36,440
Distribution	8,005	82,446	56,419	146,870
SPDs	7,412	71,862	52,323	131,597
SMMs	593	10,584	4,096	15,273
Total Hour Burden (Thousands)	58	141	63	262
Preparation	47	6	1	54
SPDs	33	3	*/	36
SMMs	14	3	*/	18
Distribution	11	134	63	208
SPDs	7	70	38	115
SMMs	4	65	25	93
Dollar Equivalent of Hour Burden (Thousands of dollars)	5,331	3,629	1,466	10,425

* Less than 500.

Table 4 – Documents Prepared
Type of Plan	SPDs for New Plans	SPDs for Amended Plans	Total SPDs Prepared	SMMs Prepared	Total Documents Prepared
Small pension	31,519	84,105	115,624	94,253	209,877
Large pension	1,044	12,365	13,409	20,828	34,237
Customized welfare	44	361	405	786	1,191
Other welfare	423	708	1,131	1,436	2,567
Total	33,030	97,539	130,569	117,304	247,873

* Less than 500.

Table 5 – Annual Number (in thousands) of Responses by Reason for Receipt
Type of Plan	Participants receiving new SPDs						Participants receiving SMMs	Total responses (SPDs plus SMMs)
	From new plans	From existing plans due to				Total
		Preparation of new SPD1	Change of status2	Participant request	Total
Small pension	569	1,449	619	597	2,665	3,234	1,628	4,862
Large pension	1,613	17,230	5,614	6,900	29,743	31,356	29,071	60,427
Welfare	3,681	5,517	3,695	4,024	13,237	16,918	11,250	28,168
Total	5,863	24,196	9,928	11,521	45,645	51,508	41,949	93,457

Table 6 - Number of Responding Plans (in thousands) by Type of Response Required
Type of plan	Plans Preparing Documents Each Year3	Plans Distributing Unamended SPDs Under 10-Year Rule	Plans Distributing Only to Requestors or Status Changers4	Plans Obliged Only to Being Prepared to Disclose	Total Number of Plans
Small pension	210	15	249	156	630
Large pension	34	1	35	0	70
Customized welfare	1	*/	1	3	3
Other welfare	759	123	1,010	606	2,497
Total	1,004	139	1,371	762	3,200

* Less than 500.

1 Includes participants receiving an SPD that has not been amended in 10 years.

2 There are four types of status change that trigger SPD distribution: entering active participant, separating vested participant,

retiring participant, and initial benefit receipt by a beneficiary.

3 The events requiring document preparation are plan amendments, which require SPD preparation/distribution every five years and SMM preparation/distribution in the year of the amendment, and formation of a new plan.

4 / Status changes occur when individuals first become 1)participants, 2) separated vested, 3) retired, 4) beneficiaries.