A Summary Plan Description (SPD) is a detailed, legally required document that employers must provide to participants in an employee benefit plan governed by the Employee Retirement Income Security Act (ERISA). It explains, in plain language, the benefits, rights, and obligations of the participants and beneficiaries under the plan. The SPD outlines how the plan works, what benefits are offered, eligibility criteria, how to file claims, and how disputes are resolved.
It serves as the primary communication tool between the plan administrator and participants, helping employees understand what to expect from their benefits.
Simplify credential management
Tracking employee certifications and licenses doesn't have to be complicated. Expiration Reminder helps you send automated notification and keep your company compliant.
Key Facts
- ERISA Requirement: Employers must provide SPDs for retirement and health benefit plans subject to ERISA.
- Plan Summary: Includes key terms like eligibility, benefits, claim procedures, and participant rights.
- Delivery Obligation: Must be distributed to participants within 90 days of coverage or within 120 days of a new plan’s establishment.
- Plain Language: Required to be understandable to the average plan participant.
- Update Frequency: Must be updated when significant changes occur and reissued every 10 years (or 5 years if amended).
1. Who is entitled to receive a Summary Plan Description?
All participants and beneficiaries in an ERISA-governed benefit plan must receive it.
2. What’s included in an SPD?
Details such as plan name, administrator contact, benefits offered, eligibility, contribution info, claims procedures, appeal rights, and ERISA rights.
3. Is an SPD the same as a benefits brochure?
No. A brochure is a marketing tool, while an SPD is a legal document required under federal law.
4. How must the SPD be delivered to employees?
It can be delivered in paper or electronically, but the delivery method must ensure actual receipt by the participant.
5. What happens if an employer fails to provide an SPD?
The Department of Labor may impose penalties, and courts may side with employees in benefit disputes if the SPD is missing or misleading.
Make sure your company is compliant
Say goodbye to outdated spreadsheets and hello to centralized credential management. Avoid fines and late penalties by managing your employee certifications with Expiration Reminder.
.png)