Table of Contents
What must be included in SPD?
The SPD must contain the following information:
- Name of Plan.
- Name & Address of Employer.
- Plan Sponsor’s EIN.
- Plan Number.
- Type of Plan (medical, FSA, disability, etc.)
- Type of plan administration (insurer, contract, etc.)
- Plan administrator’s name address & telephone number.
What must a summary plan description include?
The plan describes the program benefits and how the plan works. The plan must answer specific questions such as the plan name, the plan’s IRS-assigned number, the employer’s name and address, and a statement of health and accountability rights.
How often does an SPD need to be updated?
If there have been material changes to the plan, an updated SPD must be republished and distributed at least every five years. It is hard to imagine a plan that has not made a material change in the last five years, so, practically, almost all plans are required to distribute an updated SPD every five years.
What is the difference between a plan document and an SPD?
The summary plan description (SPD) is simply a summary of the plan document required to be written in such a way that the participants of the benefits plan can easily understand it. Unlike the plan document, the SPD is required to be distributed to plan participants.
Is a wrap document the same as an SPD?
Wrap documents become the SPD, which ensures that the required ERISA language is available in writing. A wrap document may cover benefits not subject to ERISA as well as ERISA benefits.
How do you distribute SPD?
SPDs must be provided to all plan participants within 90 days of becoming covered by the plan, although sponsors of a new plan have 120 days after the plan becomes subject to ERISA to distribute the SPD. Updated SPDs must be furnished every five years if changes were made to SPD information or if the plan was amended.
Is a benefit booklet the same as an SPD?
Can we use that booklet as the summary plan description (SPD) for this plan? ANSWER: The booklet probably cannot serve as the SPD on its own. ERISA requires that SPDs include certain specific information, and it is unlikely that the insurer-provided booklet contains all of the necessary details.
What is an SPD document?
What components may be included in a cafeteria plan?
What is a cafeteria plan?
- Accident and health benefits (but not Archer medical savings accounts or long-term care insurance)
- Adoption assistance.
- Dependent care assistance.
- Group-term life insurance coverage.
- Health savings accounts, including distributions to pay long-term care services.
What is an ERISA SPD?
The Employee Retirement Income Security Act (ERISA) requires plan administrators to give to participants and beneficiaries a Summary Plan Description (SPD) describing their rights, benefits, and responsibilities under the plan in understandable language. The SPD includes such information as: Name and type of plan.
How often does an SPD have to be distributed?
every five years
SPDs must be provided to all plan participants within 90 days of becoming covered by the plan, although sponsors of a new plan have 120 days after the plan becomes subject to ERISA to distribute the SPD. Updated SPDs must be furnished every five years if changes were made to SPD information or if the plan was amended.
What is an SPD wrap document?
Wrap plans are a function of complying with ERISA’s plan document and summary plan description (SPD) requirements. The “wrap” plan can bundle one or more lines of coverage together under one ERISA plan number and provide supplemental wording not found in insurance certificates or booklets.
Is the SPD the same as the plan document?
What are the SPD requirements for group health plans?
Other SPD requirements include: the name of the plan, plan sponsor, plan administrator, plan year, employer tax identification number, type of welfare plan, type of administration, summary of the benefits, detailed description of plan benefits for group health plans, provider network availability for group health plans,…
Are there any exceptions to the SPD requirement?
There are very few exceptions to the SPD requirement. One is that an SPD is not required for an employer-provided day care center. Another is that a plan covering a select group of management or highly compensated employees (e.g., a Top-Hat Plan) is exempt from this requirement.
What are the requirements for a summary plan description?
SPD Requirements. An employer must have a written Summary Plan Description (SPD) for each separate welfare benefit plan communicating plan rights and obligations to participants and beneficiaries. These documents must contain ERISA wrapper language, along with the certificate of insurance to constitute a SPD.
What is included in the SPD disclosure?
The SPD disclosure consists of the following: Eligibility requirements, benefits, claims, and appeals procedures, and rights under ERISA.