Topics
HR Support with Summary Plan Descriptions (SPDs)
Editor's Note: Understand the requirements for writing and distributing SPDs.
Overview: Summary Plan Descriptions (SPDs) provide plan participants with a detailed description of what benefits an employee benefit program provides and how it operates. Employers are required to provide an SPD for each plan covered by ERISA, written in language calculated to be easily understood by the average plan participant.
SPDs generally provide information on eligibility requirements, vesting requirements, how service and benefits are calculated, when benefits are paid, how to file a claim for benefits how to appeal a denied claim and other administrative information about the plan.
The SPD should be delivered to participants within 90 days of becoming covered under the plan. In the case of newly established plans, the SPD must be distributed within 120 days after the plan is established. The SPD must be updated at least every 10 years (even if there are no changes); once every five years if changes have been made to the plan.
Trends: How SPDs are written and distributed are two areas that continue to be problematic for employers. It is important to keep in mind that the language in the SPD is binding, even if it includes a disclaimer stating that the plan document governs in the event of a conflict. Additionally, employers should be prepared to prove that the SPD was distributed in a manner "reasonably calculated to ensure receipt" using a method "likely to result in full distribution."
Tracy Morley, SPHR, Legal Editor
Latest items in Summary Plan Descriptions (SPDs)
-
Does the summary of benefits and coverage replace the summary plan description?
-
Compliance, Reporting and Disclosure Requirements
In-depth review of the spectrum of employment law requirements HR must follow with respect to Compliance, Reporting and Disclosure Requirements
-
Retirement Benefits
In-depth review of the spectrum of employment law requirements HR must follow with respect to Retirement Benefits
-
Benefit Communications
Employees need to know about their benefits in order to use them effectively and to understand and appreciate their value. This section assists HR professionals in developing a successful benefit communication plan using various media.
-
Health Care Continuation (COBRA)
The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires group health plans to extend health insurance coverage to qualified beneficiaries who lose coverage due to certain qualifying events. This section assists HR professionals in learning who is a qualified beneficiary, what is a qualifying event, how long COBRA lasts, how much COBRA costs and COBRA notification requirements.
About this topic
HR guidance on requirements for Summary Plan Descriptions - in particular, content and distribution requirements.