The Employer Retirement Income Security Act (ERISA) has developed guidelines that make it mandatory for all businesses with 2 or more employees to provide their employees with a Summary Plan Description (SPD). We continue to take a leading role in informing and helping our members meet their obligations under ERISA.
ERISA mandates all companies maintain a summary plan description.
An SPD ANNUAL NOTICE must be given to employees annually by Federal Law.
ERISA legal requirement
Summary of Materials Modifications allows employers to edit an existing (SPD).
What is a Summary Plan Description Document?
An SPD is a document that is provided to plan participants to explain the plan’s benefits, claims review procedures and participants’ rights. The booklet issued by the insurance company is not the equivalent to an SPD, and as such does not fulfill the requirement. An SPD must be written in a manner that is understood by the average plan participant and must inform the participant of his or her rights and obligations under the plan.
Participants must receive an SPD:
Within 120 days of the plan becoming subject to ERISA (for example, a new group health plan);
Within 90 days of enrollment, for new participants;
Within 30 days of a participant’s written request for an SPD;
Every five years, if material modifications are made during that period; or