22:26
@JumpySubsequentDolphin: wait this is so cute, also where r u going
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LSDefine
Simple English definitions for legal terms
summary plan description
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A quick definition of summary plan description:
A summary plan description is a document that outlines an employee benefit plan. It includes information about who is in charge of the plan, who is eligible to participate, and what might cause someone to be denied benefits. It also lists any insurance companies involved in the plan. This document must be given to all employees who are part of the plan.
A more thorough explanation:
A summary plan description (SPD) is a document that outlines the details of an employee benefit plan. It is required by the Employee Retirement Income Security Act (ERISA) and must be provided to all participants and beneficiaries of the plan.
The SPD includes important information such as:
- The name and contact information of the plan administrator
- The requirements for eligibility and participation in the plan
- Circumstances that may result in disqualification or denial of benefits
- The identity of any insurers responsible for financing or administering the plan
For example, if an employee is eligible to participate in a company's 401(k) plan, the SPD would outline the specific requirements for participation, such as the minimum age or length of employment. It would also explain the consequences of not meeting these requirements, such as being ineligible for employer contributions.
Another example would be a health insurance plan. The SPD would outline the specific benefits covered by the plan, such as doctor visits and prescription drugs, as well as any limitations or exclusions, such as pre-existing conditions.