Space Patrol Delta? Super Perfect Day? Special Person Driver? Spinning Pile Driver?!
Summary Plan Description? Oh yeah, that’s it, at least in the context of benefit plans!
Plan Documents and SPDs are required for most benefit plans covered by ERISA, including Health (and “Welfare”) plans – i.e. medical, dental, vision, life, STD and LTD, etc., pre-tax plans like a Section 125 plan (typically as standalone documents), and Qualified Retirement Plans like a 401(k) or 403(b).
The Plan Document outlines all the possible parameters that could be adopted by a plan and defines and includes all the legal components. The Summary Plan Description (SPD) adopts the applicable provisions from the Plan Document, puts them in a more employee friendly, readable format, and is then distributed to each plan participant. The structure of these documents is generally similar, but the contents vary quite a bit between different benefit types and applicable laws. For example, with Health and Welfare benefits, employers often adopt a wrap SPD that pulls all medical, dental, vision, life and disability benefits under one single Plan Document and SPD. In each case, the requirements surrounding Plan Documents and SPDs are governed by ERISA through the Employee Benefits Security Administration (EBSA), a division of the Department of Labor (DOL).
With regard to pre-tax plans like a Section 105, 125 or 129, or 132 that allow pre-tax benefits for things like HRAs, employee premium contributions, Flexible Spending Accounts, Health Savings Accounts and parking and transit, Plan Documents and SPDs are required regardless of ERISA status (those IRS sections dictate these requirements, not ERISA). In other words, even if you're a governmental entity or church plan not otherwise subject to ERISA, you do need Plan Documents and SPDs for these pre-tax benefits.
This is meant as a very high level description of Plan Documents and SPDs. If you are a current client of Rose Street Advisors, please contact your Relationship Manager to discuss your needs in greater detail.
If you are not a current client of Rose Street Advisors, please feel free to contact us at 269-552-3200 or contact@rosestreetadvisors.com to speak to someone.
So, what is a Summary Plan Description, or SPD, who needs one and why?
Plan Documents and SPDs are required for most benefit plans covered by ERISA, including Health (and “Welfare”) plans – i.e. medical, dental, vision, life, STD and LTD, etc., pre-tax plans like a Section 125 plan (typically as standalone documents), and Qualified Retirement Plans like a 401(k) or 403(b).
The Plan Document outlines all the possible parameters that could be adopted by a plan and defines and includes all the legal components. The Summary Plan Description (SPD) adopts the applicable provisions from the Plan Document, puts them in a more employee friendly, readable format, and is then distributed to each plan participant. The structure of these documents is generally similar, but the contents vary quite a bit between different benefit types and applicable laws. For example, with Health and Welfare benefits, employers often adopt a wrap SPD that pulls all medical, dental, vision, life and disability benefits under one single Plan Document and SPD. In each case, the requirements surrounding Plan Documents and SPDs are governed by ERISA through the Employee Benefits Security Administration (EBSA), a division of the Department of Labor (DOL).
With regard to pre-tax plans like a Section 105, 125 or 129, or 132 that allow pre-tax benefits for things like HRAs, employee premium contributions, Flexible Spending Accounts, Health Savings Accounts and parking and transit, Plan Documents and SPDs are required regardless of ERISA status (those IRS sections dictate these requirements, not ERISA). In other words, even if you're a governmental entity or church plan not otherwise subject to ERISA, you do need Plan Documents and SPDs for these pre-tax benefits.
This is meant as a very high level description of Plan Documents and SPDs. If you are a current client of Rose Street Advisors, please contact your Relationship Manager to discuss your needs in greater detail.
If you are not a current client of Rose Street Advisors, please feel free to contact us at 269-552-3200 or contact@rosestreetadvisors.com to speak to someone.