Jump to content

New Wrap Plan and SPD Distribution Requirements


Recommended Posts

If an employer has recently bundled multiple H&W benefits under one mega wrap plan, do participants have to be supplied with all plan materials that constitute the bundled plan's SPD? Or can the plan administrator provide plan materials that describe only the benefits for which a participant is currently enrolled? For example, if the wrap plan includes M, D, and V, and an employee is only enrolled in the dental benefit, can only the dental materials (e.g., certificate/benefit summary) be supplied along with the wrap's SPD?

Link to comment
Share on other sites

Even to explain one plan, the Employee Retirement Income Security Act of 1974 permits a plan’s administrator to use more than one summary plan description, making them distinct by clearly identified classes.

Each SPD may omit information that cannot apply to the class of participants or beneficiaries to which that SPD is addressed.

29 C.F.R. § 2520.102-4 https://www.ecfr.gov/current/title-29/subtitle-B/chapter-XXV/subchapter-C/part-2520/subpart-B/section-2520.102-4.

But your focus on which benefit a participant enrolled in seems inapt. Rather, an SPD must describe each benefit its addressee could elect.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...