SPD/SMM Distribution SPD/SMM Distribution

SPD/SMM Distribution

Steven Lloyd Steven Lloyd

Distribution of the Summary Plan Description ("SPD") is subject to the requirements of the Employee Retirement Income Security Act of 1974 ("ERISA") as described below.

Who must receive a copy of the SPD?

The plan sponsor must distribute a copy of the SPD to each plan participant and to each beneficiary receiving benefits.

When must the Company distribute the SPD?

New employees must receive a copy of their plan sponsor's SPD within 90 days after becoming covered by the plan.

Newly established plans must distribute a copy of the SPD within 210 days after adoption of the plan.

In addition to the SPD, plan participants are entitled to receive a Summary of Material Modifications ("SMM") when there is a material modification to the terms of the plan or any change to the information in the SPD.

In general, a SMM is distributed within 60 days if there is a material reduction in benefits or 210 days following the close of a plan year when an amendment does not result in a material reduction of benefits.

For more information on the SPD requirements visit the Department of Labor site here.

How must the Company distribute the SPD?

The plan sponsor may distribute the SPD either by mail or in person.  In addition, sponsors may distribute the SPD through electronic media (e-mail or a company intranet site).  The DOL has issued safe harbor guidelines for electronic distribution of the SPD and SMM.  Please review the link for updated information and requirements for electronic distribution of the SPD or SMM - here.

 

 

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