What must be included in an SPD?
An SPD must contain all of the following information:
- The plan name.
- The plan sponsor/employer’s name and address.
- The plan sponsor’s EIN.
- The plan administrator’s name, address, and phone number.
- Designation of any named fiduciaries, if other than the plan administrator, e.g., claim fiduciary.
What is required to be in a summary plan description?
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.
When should SPD be provided?
within 90 days
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.
How often does an SPD need to be updated?
every five years
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.
How often do summary plan descriptions need to be distributed?
An updated SPD must be furnished to all covered participants every 5 years, and every 10 years even if the SPD has not changed. Determining whether or not an SPD was furnished to a participant or beneficiary is an important issue in litigation.
Can an SPD be emailed?
When employees do not use a computer to perform their duties and thereby lack the ability to access electronic media at their workstation (including retirees and beneficiaries), the participant must sign a written consent form before the employer can send electronically distribute the SPD to them.
What is the difference between an SPD and a plan document?
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.
What is the difference between SPD and SBC?
Summary of Benefits & Coverage
Although SPDs already provide information about the plan, the Summary of Benefits and Coverage (SBC) is a document in a standard format that provides comparable information regarding health plan benefits and coverage.
Does an SPD need to be signed?
To be in compliance with the 2019 ERISA Wrap SPD requirement, the document must be drawn up by the employer or its agent containing the necessary information. It is then signed by the employer, and a copy is given to every employee eligible to participant in the plan.
What is the difference between a plan document and an SPD?
Can a SPD be distributed electronically?
Employers may electronically distribute the SPD to employees with the ability to access the electronic media where they perform their job duties. In other words, they use a computer with internet access in their daily work.
Can summary plan descriptions be distributed electronically?
In contrast, a Summary Plan Description (SPD) can be provided electronically under the 2020 Safe Harbor because it is required to be disclosed under Title I of ERISA and is not only provided upon request.
Is the certificate of coverage the same as the SPD?
Certificates of Coverage and Certificates of Insurance are not SPDs. Certificates of Coverage (COC), Certificates of Insurance (COI) or general insurance contracts issued by insurance carriers are not SPDs. Typically, COCs and COIs are not ERISA compliant and are meant to be supplemental to the plan’s SPD.
Is a wrap SPD required?
Yes: 1. The Wrap SPD requirement applies to all employer sponsored group health insurance offerings, including a one-person plan. For large employers (100+) subject to Form 5500 reporting, Wrap SPDs are largely a necessity.
Is an SPD a plan document?
What are ERISA requirements?
ERISA requires plans to provide participants with plan information including important information about plan features and funding; sets minimum standards for participation, vesting, benefit accrual and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to …
What are the ERISA rules?
ERISA prohibits fiduciaries from misusing funds and also sets minimum standards for participation, vesting, benefit accrual, and funding of retirement plans. It also grants retirement plan participants the right to sue for benefits and breaches of fiduciary duty.
What is a 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.
Who needs a wrap SPD?
The Wrap SPD requirement applies to all employer sponsored group health insurance offerings, including a one-person plan. For large employers (100+) subject to Form 5500 reporting, Wrap SPDs are largely a necessity.
What is ERISA language?
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.
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.
Is wrap a legal document?
A wrap plan document is a legal document that “wraps” together, or combines, all welfare benefit plan arrangements and/or group insurance policies and contracts and creates a single plan. Is it required?
Is wrap document the same as 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.
What are the ERISA requirements?