Employee Retirement Income Security Act (ERISA), the federal legislation which governs private retirement, group life, and health programs, requires that program participants get a document called a summary plan description ("SPD"). Even though the SPD has to be prepared according to two Department of Labor regulations, shouldn't be called"Summary Plan Description." You can get more information about SPD online at https://www.cxcsolutions.com/.
What's Covered by Plan Summary Description?
SPD is a thorough document that educates participants program on how the program works and is handled. Among other items, the SPD should clearly identify with readily comprehensible language the following things:
- A description or summary of benefits
- Title of program sponsors and administrators
- Financing mechanism
- Involvement and eligibility guidelines
- The process of searching for solutions and benefits
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- Benefits vesting schedule
- Gain payment processes and time
- The Procedure for filing claims
- A statement of ERISA rights of participants along with other specialized notices
- Questions that participants could still have strategies after studying the SPD could be answered by calling the program administrator.
When Should Summary Plan Description will be given?
Each program administrator should Offer a copy of the SPD for participants in the following scenarios:
- Once the new strategy applies
- Once an employee becomes eligible to participate in the Strategy
- Upon written petition from program participants or beneficiaries
Are there some exceptions to the Summary Plan Description?
Child welfare and care of this employer-provided program for its management and highly paid employees that are exempt from the requirements of the SPD. There's not any exemption from the requirements of the SPD for smaller plans which include less than 100 participants.