ERISA Summary Plan Description
Your company’s Summary Plan Description, or SPD, is the main channel for communicating plan obligations and rights to all beneficiaries and participants. Your SPD is a summary of material provisions that are included in the plan document and needs to be understandable to the average employee. With health and welfare benefits plans, it is not uncommon for your SPD to combine a complete description of the plan’s conditions and terms, such as the Certificate of Coverage, and the required ERISA disclosure.
Your SPD is required to include specific information, including:
- The name of the plan.
- The name and address of the sponsor/employer.
- The plan sponsor’s EIN.
- The name, address, and phone number of the plan administrator.
- Designation of any named fiduciaries, such as the claim fiduciary, if other than the plan administrator.
- The plan number for ERISA Form 5500 purposes. Keep in mind that each ERSIA plan should have a unique number.
- The type of plan or a brief description of the benefits, such as dental, medical, or disability.
- The date of the end of the plan year to help maintain the plan’s fiscal records.
- Each trustee’s name, address of principal place of business, and title if the plan includes a trust.
- The type of plan administration, such as administered by contract, sponsor, or insurer.
- A summary of any plan provisions that govern the allocation and disposition of assets when the plan is terminated.
- The standard of review for any benefit decisions.
- The sources of any plan contributions, whether from employee and/or employer, and the method by which they will be calculated.
- The identity of the insurer if there are any.