Make Summary
Plan Description Management Easy

An SPD is a summary of your welfare benefit plan features you are required to provide plan participants. This document provides information about plan rights and obligations, providing a complete description of plan terms and conditions written in language that is easy to understand. The information required will differ depending on the plan, but each SPD should include:

• Employer name, address, and phone number
• Plan Type
• Description of Benefits
• Plan EIN
• Provisions covered by the plan
• Special features
• Plan administrator information

Each welfare plan requires an SPD, though you can combine all welfare plan descriptions in one document with an SPD Wrap.

The SPD wrap combines all welfare benefit plans into one Summary Plan Description document, making it easy to notify participants of the required plan information at one time.

An SMM describes material modifications to a welfare benefit plan and is required within 210 days after the end of the plan year in which the change was adopted. This notifies participants of any important changes to their welfare benefits and is required by ERISA regulations.

If you offer a group welfare plan, you are required to distribute an ERISA SPD document to all plan participants within 120 days of the plan’s effective date. You can choose to complete an SPD Wrap to combine welfare benefit plan notifications into one document. If you choose this option, the same regulations apply.

You are required to provide an SPD within 120 days of an ERISA-regulated welfare plan’s effective date. If any modifications occur, you must distribute an SPD every five years.

A new SPD is required every 10 years if no modifications are made.

You are also required to provide a copy of your SPD documentation to the DOL if requested.

Failure to distribute an SPD to participants can result in fines of $110 per day for each incident. You could also subject yourself to lawsuits and other legal issues from employees.

Failure to meet a DOL request for documentation can result in fines up to $190 per day, not to exceed $1,906 per request.

ERISA law does not cover group plans for government entities or churches. It also does not cover plans made to comply with applicable workers’ compensation, disability, unemployment laws, or those maintained for nonresident aliens outside of America.

There is a difference between plan documents and the Summary Plan Description. Plan documents explain the benefits participants are entitled to and provide:

• The name of the fiduciary who holds authority to administer the plan.
• The process for amending and terminating the policy.
• The source of plan contributions and the distribution responsibilities between the employer and insurance carrier.

The Department of Labor has increased ERISA audits to ensure all rules and regulations are followed. The ERISA regulations are subject to change, making it harder for employers to maintain compliance on their own.

HR Service, Inc. can help you keep up with these changing regulations and determine which rules apply to you so you can keep up with all requirements. We can help you make sure you have all the information you need and help you conduct regular reviews so you don’t have to worry about missing important requirements.