Opinion ID: 989134
Heading Depth: 4
Heading Rank: 1

Heading: The administrator shall furnish to each

Text: participant, and each beneficiary receiving _________________________________________________________________ 4 Section 1022(a)(1) reads: (a)(1) A summary plan description of any employee benefit plan shall be furnished to participants as provided in section 1024(b) of this title. The summary plan description shall include the information described in subsection (b) of this section, shall be written in a manner calculated to be understood by the average plan participant, and shall be sufficiently accurate and comprehensive to reasonably apprise such participants and beneficiaries of their rights and obligations under the plan. A summary of any material modification in the terms of the plan and any change in the information required under subsection (b) of this section shall be written in a manner calculated to be understood by the average plan participant and shall be furnished in accordance with section 1024(b)(1) of this title. 7 benefits under the plan, a copy of the sum- mary, plan description, and all modifica- tions and changes referred to in section 1022(a)(1) of this title-- (A) within 90 days after he becomes a par- ticipant, or (in the case of a beneficiary) within 90 days after he first receives benefits, . . . . 29 U.S.C. § 1024(b)(1)(A). The 90-day window requires the employer to furnish plans to new participants within the first 90 days after they become a participant. The Appellants argue that BASF violated § 1024(b)(1)(A) by not permitting them to view the benefits plan within 90 days of its effective date. The Appellants, however, were preexisting participants in a preexisting plan--the Badische policy. In their failure to read § 1024(b)(1) in its entirety, the Appellants missed the last sentence of § 1024(b)(1), which states: If there is a modification or change described in section 1022(a)(1) of this title, a summary description of such modification or change shall be furnished not later than 210 days after the end of the plan year in which the change is adopted to each participant, and to each beneficiary who is receiving benefits under the plan. 29 U.S.C. § 1024(b)(1). Thus, once a benefits plan undergoes modification or change, the employer has 210 days after the end of the plan year to notify each participant and beneficiary of the modifications and changes. BASF's May 1989 Plan, was not a new plan, but a revision of a pre-existing benefits policy. Pursuant to § 1024(b)(1), BASF had 210 days from the plan's year end to furnish the Appellants, with any modifications or adopted changes. The plan year did not end until December 31, 1989.5 Accordingly, BASF had until at least July 1990 _________________________________________________________________ 5 Absent evidence of how BASF calculates its taxable year, we calculate the plan year as the calendar year. See 52 Fed. Reg. 22716 (June 15, 1987) (to be codified at 26 C.F.R. Part 1). 8 to disseminate plan modifications and changes to employee beneficiaries and participants. By July 1990, the Appellants were employees of Mann Industries. Because the Appellants were no longer BASF employees, they were no longer qualified participants in the severance plan. Thus, the district court did not err in finding that BASF did not violate ERISA procedure.