spd summary plan description spd

The purpose of a Summary Plan Description is to provide a clear, concise, and accurate summary of the key features of a plan. The information on the Summary Plan Description documents should include the basics of your plan, including your company’s name, the type of plan, the provisions covered by the plan and any special features. The Summary Plan Description is a summary document that has to be written in such a way that the participants of the benefits plan can easily understand it. A plan document is not the same as a plan description. The plan document tells the plan participants about the benefits they are entitled to under the plan while the Summary Plan Description is the document that outlines  specific guidelines set by ERISA.

Summary Plan Description (SPD) Services Include:

  • A One-Stop Document Management System that is available 365 days per year, 24 hours a day.
  • Login 24/7 to receive your new SPD Wrap documents for auto updates.
  • SPD Wrap Documents are automatically generated and emailed.
  • SPD documents are automatically kept up to date with all legal requirements.
  • We will notify you of any changes. You need not worry about missing IRS deadlines or getting a DOL penalty.
  • Fast preparation – Wrap Documents can usually be completed in less than 60 minutes!
Create, edit and distribute Summary Plan Description Documents with Accuracy and Affordability.

ERISA Plan - SPD Service Options

ERISA SPD Wraps - Service Option 1

Includes all health and welfare benefits, along with required ERISA language. Common distribution methods include hand delivery, mail and electronic delivery. All for an all inclusive yearly fee of $149.00.

ERISA eSolutions - Service Option 2

A complete online package - your best value! Compliance Assessment & Dashboard, SPD Plan Documents, Employment Law Updates & Reminders, Employee Notifications and much more! Find out more by clicking below.

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SPD Requirements

If you offer group health insurance, you are required to distribute an ERISA Wrap SPD document to all Plan participants within 120 days of the Plan’s effective date.

The employer must notify all employees in writing of any change to their benefits that will apply either immediately or in the future. This includes changes to salary increase and bonuses, health care and other fringe benefits, retirement plan contributions and distributions, life insurance coverage, disability insurance coverage, time off policies or practices, employee pay rates.

The Employee Retirement Income Security Acts of 1974 (ERISA) protects individuals under voluntarily established pensions and health plans in private industries.

ERISA requires plans to provide participants with plan information, including important information about plan features and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans, and gives participants the right to sue for benefits and breaches of fiduciary duty.


Participants must receive an SPD:

  • Within 120 days of the Plan becoming subject to ERISA (for example, a new group health plan);
  • Within 90 days of enrollment, for new participants;
  • Within 30 days of a participant’s written request for a summary plan description or SPD;
  • Every five years, if material modifications are made during that period, or every ten years, if no amendments occur. ** If you offer group health insurance, you are required to distribute an ERISA Wrap SPD document to all Plan participants within 120 days of the Plan’s effective date.
  • A compliance solution for insured plans is a “wrap document.”
  • The insurance certificate typically does not meet all of ERISA’s requirements for SPDs.
  • The sponsor of an insured plan (not the issuer) is responsible for providing the SPD.

Failure to provide written requested ERISA plan documents, Summary Plan Descriptions, Summary of material modifications, etc.$119 per day.

ERISA does not cover group plans for government entities or churches. It also does not cover plans made only to comply with applicable workers’ compensation, disability, or unemployment laws and those maintained for the benefit of nonresident aliens outside America.

However, there is a difference between plan documents and summary plan descriptions. Plan documents explain the benefits participants are entitled to and provide guidelines to help administrators make informed decisions.

  • Name of the fiduciary who holds the authority to administer the plan;
  • Process for amending and terminating the policy;
  • Source of plan contributions and the distribution of responsibilities between the employer and insurance carrier.

Not having an SPD also allows participants to use other evidence or employer representations to support benefit claims or lawsuits against the employer.

An employer that cannot respond to the DOL’s request may trigger additional document requests and DOL enforcement actions. The DOL may also charge a plan a penalty of $156 per day (capped at $1,566 per request) for not providing this document.

The Department of Labor  (DOL) increased ERISA audits to ensure all rules are adhered to.  These rules and requirements are subject to changes, making it harder for  employers to remain compliant on their own.

$1,264 per failure.

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