ERISA Summary Plan Description Requirements

ERISA Summary Plan Description Requirements

The Employee Retirement Income Security Act (ERISA), the federal law regulating private pension, group life, and health benefits, includes a document known as a summary plan outline to be obtained by plan participants (“SPD”). Although the SPD must be drafted in compliance with two regulations of the Department of Labor, it does not have to be named “The Summary Plan Description.” Disability Insurance Attorney offers excellent info on this.

What is protected in the definition of the Overview Plan?

The SPD is a systematic document informing members in the plan on how the plan works and is handled. The SPD must, among other things, clearly describe the following items in an easily understood language:

A definition or description of the advantages

The term, supporter, and administrator of the plan

Mechanisms to Finance

Guidelines on participation and qualifications

Service and benefits assessment approaches

Timetables of profit vesting

Procedures for payment of benefits and scheduling

Submission Procedure for Allegations

Appeal procedure for allegations

Address for Legal Process service

Circumstances which can lead to ineligibility or denial of advantages

A declaration of the ERISA rights of participants and other technical notices

Questions that a participant will still have about the plan can be addressed by contacting the plan administrator after reading the SPD.

When should a review of the Summary Plan be provided?

In the following circumstances, every plan administrator must provide participants with a copy of the SPD:

When a fresh strategy takes place

When a worker becomes qualified to take part in a programme

At the written request of the participant or beneficiary of the programme,

Are there any exceptions to the definition of the Summary Plan?

Employer-provided daycare and health plans are excluded from the SPD mandate for management and highly paid workers. For limited plans covering less than 100 participants, there are no exemptions from the SPD provision.