what does a summary plan description look like

Published by on November 13, 2020

the vesting schedule for employer-matching contributions (if applicable). These communications, oftentimes emails involving employee eligibility or the delivery of notices and plan information to participants, must be documented. And that’s just the beginning. The goal should be to get the reader to say “This is interesting. If your company has only a bare-bones 401k plan, the SPD may be one of the few pieces of information you get about your plan. This saves costs and typically ensures that all the legal fine points are covered. "Summary Plan Description - An Overview. Keep your 401(k) plan documents organized neatly and in digital format – if they aren’t already. But, unfortunately, every responsibility of a 401(k) plan sponsor also involves documentation – some of which should be kept on hand, and others that you need to save for reference. "Ask EBSA." 0000004901 00000 n 0000002623 00000 n If you're like most 401k-plan participants, you received this copy of your plan rules when you enrolled. These people know what they are doing, and I want to get in on the action. 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. Unless you have a fiduciary, any mistakes uncovered by a DoL audit are the financial responsibility of the plan sponsor. The prose contained in the average SPD is not likely to win a Pulitzer Prize, because it's often pretty legalistic. , Press Center 0000032013 00000 n Every participant has the legal right to request a host of information about the 401(k), its sponsors, and its management. Learning how to develop a project plan doesn’t need to be complicated. ... Looks like somebody cared enough to make the cover look good, too. It’s a simple concept, but the actual task can involve some hard work. In this Forbes report I detail exactly what to include in a pitch deck. They are far more visual, and can be used for both live pitches and over the internet. A summary plan description is necessary for any retirement plan covered by the Employee Retirement Income Security Act. Do you even know where it is? The most important 401(k) plan documents and records are: If you adopted features from a Volume Submitter Plan Document, you'll have a Basic Plan Document. Unless you have a fiduciary, any mistakes uncovered by a DoL audit are the financial responsibility of the plan sponsor. There are two basic types—traditional and Roth. ", Creative Commons Attribution-NoDerivatives 4.0 International License. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. The plan provider must disclose employee eligibility requirements, how benefits are calculated, vesting schedules, and details on how to file claims for benefits. Your SPD isn't likely to be to be scintillating reading, but it's an important reference document, observed Ted Benna, one of the first to create a 401k. Pitch Decks vs. Business Plans. trailer << /Size 69 /Info 51 0 R /Root 54 0 R /Prev 110690 /ID[<29e57443377af01ef7311d365b11cfea><4378b7c32c2f6dd635af3a65ced378f6>] >> startxref 0 %%EOF 54 0 obj << /Type /Catalog /Pages 50 0 R /Metadata 52 0 R /PageLabels 49 0 R >> endobj 67 0 obj << /S 198 /L 269 /Filter /FlateDecode /Length 68 0 R >> stream Not sure if you’re wasting time? This is effectively a summary or mini business plan. 0000054091 00000 n Internal Revenue Service. google_ad_client = "ca-pub-9717745944260673"; Get to the plan document information you need faster: If you are reading this, you’re probably either: To help you get your 401(k) plan documents in order, you need to know what you’re getting into. There is also a legal requirement to provide a prospectus on the employer's own stock if it is offered in its plan., The summary plan description, or SPD, is a document that provides plan participants with "the most important facts they need to know about their retirement and health benefit plans, including plan rules, financial information, and documents on the operation and management of the plan," according to the U.S. Department of Labor (DOL)., The SPD is required for any retirement plan covered by the Employee Retirement Income Security Act (ERISA). This documentation will help you prove that you are complying with participant notice requirement, and confirm that you are doing so within the required deadlines. The Department of Labor is still deciding whether this is an acceptable substitute for delivering a paper copy, said John Scott, director of retirement policy with the American Benefits Council.

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