If you currently offer a retirement plan, it is important to know what the Summary Plan Description distribution requirements are, as the Department of Labor imposes hefty fines for those companies that don’t comply.
Under the ERISA requirements, every plan administrator must provide a copy of the SPD to each participant covered under the plan and to each beneficiary receiving benefits under the plan.
The plan administrator must provide the SPD within 90 days after an employee becomes eligible to make deferrals. In the case of a beneficiary, it is within 90 days after the individual begins receiving benefit payments. For new plans, the SPD must be given within 120 days after the date on which the plan is adopted.
The DOL also requires that an updated SPD must be furnished every five years to include all plan amendments made within the five year period. If no amendments have been made, a new one must be given every 10 years.
Finally, all participants and beneficiaries can make a written request for a copy of SPD at any time. The plan administrator must provide a copy within 30 days after receiving the request or be liable for a penalty up to $110 per day.
NADART provides an SPD with its Enrollment booklet to each participant before he or she becomes eligible and they are also available through the NADART Web site. More information on the distribution requirements can be found on the Department of Labor Web site.
If you are interested in switching retirement plan providers and would like to know more about NADART’s plans, please complete the Product Information Request Form.