What is a Summary Plan Description (SPD)?
A. The Summary Plan Description (SPD) is a document that is provided to employees by the employer outlining the specifications of the company’s retirement plan. It is written in a question and answer format to be user-friendly to the employee. The SPD should be referred to for general questions about the plan’s requirements, such as eligibility, and its features, such as loans and in-service distributions, among other things.
The SPD is a written summary of the benefits provided under the Master Plan Document, plus a statement of the participant’s rights under ERISA. It must be written in a manner calculated to be understood by the average plan participant. Descriptions of exceptions, limitations, and other restrictions of plan benefits cannot be minimized. If 25% of the plan participants are literate only in the same non-English language, special assistance must be provided.
