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Article added or updated:
10/07/2008 |
Summary Plan Description
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A Summary Plan Description (SPD) is what you provide in writing to your
employees about their benefits. And, of course, there are legal
requirements. So in preparing your SPDs, keep the following in mind:
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1. Write it so the average plan participant can understand it. Consider
the level of comprehension and education of typical participants in the
plan and the complexity of terms of the plan.
2. It must advise plan participants and their beneficiaries of their
rights and obligations under the plan.
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3. Avoid misleading statements or omission of facts. Advantages and
disadvantages should be equitably presented.
4. If 10 percent or more of the employees are literate in the same
non-English language, assistance is to be provided to help with
understanding the plan.
There's a whole lot of information that must be in the SPD, so unless
you've been trained on the contents and format required, consider using
the insurance company, a benefits consultant or lawyer experienced in
the preparation or review the plan document for you. We'd be happy to
help you out, of course.
S. Brett Anderson
Allsure Insurance Agency, LLC
banderson@allsureinsurance.com |
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As always, please check with your tax professional,
CPA or lawyer
prior to acting on any advice found here. We do NOT dispense advice on
any articles contained here.
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