Summary
ERISA provides detailed instructions about what must be included in a Summary Plan Description - basically all the information an employee needs to know about the Plan. (For information about required content, click here.)
ERISA also provides employees the easily enforceable right to obtain a copy of the Plan and changes, as well as other Plan documents.
- Plan administrators are required to give employees a Summary Plan Description within 90 days of when the employee becomes covered under the Plan(s).
- Employees also have the right to request a copy of the Summary Plan Description at any time while a participant in the Plan.
- The administrator is required to give you a copy of the Summary Plan Description within 30 days of the date when you request it. If the administrator doesn't give you the requested copy in this time period, it can be liable for severe financial penalties.
There is also other information about the Plan you are entitled to receive.
Since the date you request the plan is important, keep a copy of the request as well as a proof of the date (such as a certified receipt, or notation in a diary if you hand deliver the request.)
For a form letter for requesting a copy of a Summary Plan Description, see: How To Request A Copy Of The Summary Plan Description And Other Plan Documents.
If you do not get a Summary Plan Description on a timely basis, you can complain to the Department of Labor. To locate the nearest Department of Labor office, go to: www.dol.gov/dol/location.htm
Click on the link for information about: Deniald and A Right Of Appeal
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The Summary Plan Description -- Required Content
There are extensive regulations about just what should be in a Summary Plan Description (SPD).
- The SPD must be written in understandable language without jargon or technical complexity.
- The SPD must contain a definition of terms either in a separate section or throughout the body of the document. Terms must be defined and used consistently.
- The SPD must contain a description of the main points of the Plan, including:
- A complete description of the benefits, such as:
- Your specific benefits.
- If health insurance is involved, the amount of deductibles, co-pays and coinsurance.
- Exclusions and limitations.
- Plan Number.
- Plan Year, including the anniversary date of the plan, often January 1.
- Type of Plan: This will tell you whether it's a health plan or dental plan or life insurance, etc.
- The identity of the Plan Administrator.
- A section that is usually labeled "ERISA Information" or "Your ERISA Rights." The section should list your rights under the Plan and give the time limits on appeals.
- The SPD must include who to serve legal documents on in case you sue under the Plan.
Summary Plan Descriptions generally also let you know whether the plan is insured by an insurance company or self-funded by the employer or union.
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Complaining to Your RegulatorsOther Information About The Plan You Have A Right To Receive
You have a right to receive a copy of:
Annual Financial Statement
The Plan Administrator is required to give you an annual report on the financial condition of the Plan.
- With insured plans this is usually only a one-page statement.
- Self-funded plans will be more involved.
Changes in a Plan
The Plan Administrator is required to notify you of changes in the plan.
The Administrator is also required to provide revised Summary Plan Descriptions if the changes are material.
A statement describing your rights if you stop working
If you have the right to receive a benefit on termination of employment, you have the right to receive a description of what your benefit would be if you stopped working now.
If you do not have a right to a benefit, the statement will tell you how many more years you have to work to get a right to a benefit.
This statement must be requested in writing and is not required to be given more than once a year.
Copies of all Plan documents
You also have the right to examine or copy all plan documents and other plan information upon written request to the Plan administrator.
An examination is without charge. It must occur at the Administrator's office. The examination can include all Plan documents, including insurance contracts and copies of all documents filed by the Plan with the U.S. Dept. of Labor, such as detailed annual reports and Plan documents.
With respect to copies, the Plan must provide the Summary Plan Description free of charge. The administrator may require a reasonable charge for other copies.