As a summary of the adoption agreement or plan document for your plan, the SPD must contain all the information relevant to plan participants. The company must distribute the notification within 60 days of the change becoming effective if it reduces coverage or benefits. How to apply for hardship withdrawals and interest rate calculations for loans. Crown Castle International Corp. 401(k) Plan . To accomplish this, 401(k) plan administrators have two options: to distribute a new SPD, or to hand out a Summary of Material Modifications. employees who participate in Employee Retirement Here’s a breakdown about the ever-important Summary Plan Description. x�c```b``8������� Ā B@16 �XP $ ``d`�`. When employees are eligible to participate in the retirement plan. Employee Retirement Income Security Act (ERISA) mandates that employees receive timely and reasonable information about their retirement benefits. A brief description of the plan type and citations of the associated governing law. plan documents that provides plan participants (and their beneficiaries) with the most important details of their benefit plan your hire date, you should receive an SPD covering your new employer’s Check out the, Department of Labor’s full list of Summary Plan Description Requirements. Eligibility and participation rules (or dates). Within 90 days of For employees to make the most of their benefits, they need to understand the details of those benefits. Normally the SPD is one of those “hiring paperwork” packets that gets skimmed and tucked (or thrown) away and pretty much never looked at until a moment of “wait, whoops, what were the terms of my 401(k)…”. As a participant under the Plan, you may elect to contribute a portion of your compensation to the Plan. copy of the SPD, contact your benefits plan administrator or HR department. x��VMO�@�[�أ���~�~H)$���6n� The Summary Plan Description (SPD) is one of the important 401(k) plan documents that provides plan participants (and their beneficiaries) with the most important details of their benefit plan, like eligibility requirements or participation dates, benefit calculations, plan management instructions, and general member responsibilities. Understanding the Summary Plan Description, A Summary Plan Description Should Answer Your Questions, A Summary Plan Description Offers Employers Protection Against Lawsuits, Health Insurance Portability and Accountability Act. When and in what form retirement benefits are paid. (ERISA)-covered retirement plans or health benefit plans. This Plan is a type of qualified retirement plan commonly referred to as a 401(k) Plan. Investopedia uses cookies to provide you with a great user experience. You likely know that ERISA was put in place largely to protect employees and their retirement benefit plan interests. To make sure you don’t face any unexpected compliance issues, be certain that whenever changes or amendments are made to the retirement plan, those changes are reflected in the SPD (or added in an SMM) across all platforms and distribution channels. | Terms of Use How much is my high deductible health plan (HDHP) premium? The summary plan description shall describe the plan's provisions relating to eligibility to participate in the plan and the information identified in paragraphs (j)(1), (2) and (3) of this section, as appropriate. Summary Plan Description and discuss your personal situation with your tax and/or financial advisor. Information on plan fiduciaries and their roles/responsibilities. electronic copy, you can request a written version. If the changes do not reduce coverage or benefits, the notification should be distributed within 210 days after the end of the plan year when the change became effective. Employers may change the benefits they offer periodically. For example, mailing them to each participant or beneficiary by first class mail is acceptable, but simply posting a copy in the break room or other area frequented by participants is not acceptable. When a benefits plan is modified, Explanation of how the plan will be administered, including the yearly schedule for the plan (such as document distribution dates or filing deadlines), and the contact information of the plan administrator or sponsors. 401k Summary Plan Description: Basics, Requirements, and Compliance-- Abstract: The Summary Plan Description is one of the important 401k plan documents that provides plan participants with the most important details of their benefit plan, like eligibility requirements or participation dates, benefit calculations, plan management instructions, and general member responsibilities. The Retirement Plan is a tax‑qualified retirement plan … Participants, beneficiaries, or other individuals must be provided with a physical copy of the retirement plan document upon request. How to file documents relating to use or management of the 401(k). In addition to these fees, problems like missing SPDs or SMMs are significant red flags and could bring about a U.S. Department of Labor. either a revised SPD or a Summary of Material Modifications (SMM) document that basis. Read your company’s SPD carefully to learn more about: If you have a Flexible Spending Account, Health Reimbursement Arrangement, or Health Savings Account, you will find the following (and more): The SPD should define specifically which employees are entitled to various benefits. A new 401(k) SPD is pretty straightforward, after all, we just went over details of SPDs, so let’s briefly touch on SMMs: The Summary of Material Modifications (SMM) is a short document specifically for reporting any change in the plan that materially affects the plan design or pricing or impacts the participant. Please read this SPD carefully. Employer? endstream endobj startxref Am I immediately. How do I change my investment selection? Changes to 401(k) benefits, the rules, or the funding requirements. This information is important for health plans because account holders need to know when your annual. Employees must receive a Summary Plan Description (SPD) from their employers. Are there default investments that the money will go to if I don’t select specific investment options? The plan administrator must make sure that the system of distribution adequately protects the participant’s account and retirement benefit information. When you are first hired, you should receive an SPD covering your new employer’s health care and retirement benefits within 90 days. The SPD should state what defines an employee who is entitled to various benefits and whether such employees include independent contractors, temporary workers, spouses, domestic partners, and children. That’s the basic definition, but there’s a lot more that you need to know about the SPD for successful benefits administration. 401k Summary Plan Description: Basics, Requirements, and Compliance -- Abstract: The Summary Plan Description is one of the important 401k plan documents that provides plan participants with the most important details of their benefit plan, like eligibility requirements or participation dates, benefit calculations, plan management instructions, and general member responsibilities. (ii) A statement that participants and beneficiaries may receive from the plan administrator, upon written request, information as to whether a particular employer is a sponsor of the plan and, if the employer is a plan sponsor, the sponsor's address. Careful management of any benefit plan is critical for avoiding the stresses and fines associated with a DoL audit. Additionally, a plan sponsor must provide a SPD within 30 days of it being requested by a plan participant. Statement of rights available to 401(k) plan participants under ERISA. ) hެTۊ�0�����e�p�I[��C74�%j"�c[[ҿ�F�;m��3�htFs; represents your summary plan description under the Employee Retirement Income Security Act of 1974, as amended (ERISA). A Summary Plan Description (SPD) is a document that employers must give free to employees who participate in Employee Retirement Income Security Act-covered retirement plans or health benefit plans. Eligibility and Participation To be eligible to participate in the Plan, you must meet the General Requirements for Eligibility, and you must not be excluded from eligibility by the Specific Exclusions. Successful SPD coordination can mean employees who are informed, educated, and excited about their retirement benefits. (For further detailed explanation, see the instructions to the plan description Form EBS-1 and "Identification Numbers Under ERISA" (Publ. 1013 0 obj <> endobj SUMMARY PLAN DESCRIPTION . 1004), published jointly by DOL, IRS, and PBGC); (d) The type of pension or welfare plan, e.g.
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