Timing of delivery of SPD

[BG5150]

I know an SPD must be furnished to an employee no later than 90 days after entering the plan.

However, is there a "too early" date? Could the ER give the SPD to an Employee upon hire, even though her entry date might be 14 months later?

[Belgarath]

Interesting question. My "best" interpretation of ERISA 104(b)(1) on this would be that it says within 90 days after he becomes a "participant" - therefore, giving it 14 months, or 3 years, or whatever early, would not satisfy the literal requirements. I rather expect there might be some sort of fluid opinion on what is reasonable - for example, if you have immediate entry, and it is given to the prospective employee 2 days prior to the actual "hire" date, I certainly wouldn't lose any sleep over it. But in your 14 month example, it seems like it might be stretching the point a bit.

I wouldn't think that the DOL would waste too much time on this issue, as long as it can be proven that it was in fact actually given, but that's just a gut feeling - I have no basis for that opinion. Just a hope that they have better priorities for their enforcement actions.

[BG5150]

ERISA says

(A) within 90 days after he becomes a participant, or (in the case of a beneficiary) within 90 days after he first receives benefits, or

(B) if later, within 120 days after the plan becomes subject to this part.

It doesn't mention anything before that time.

[Belgarath]

Agreed. That's why I'm saying it is my interpretation - I can't point to anything that specifically supports one position or the other.

[GMK]

Yes, it could have said "no later than" instead of "after," but ...

The purpose of the SPD is to give the employee information about the plan. Providing that information before the employee becomes a participant, so the employee has the opportunity to know what she or he is getting into, seems to me to be in the best interests of the employees. And providing the SPD on or about the entry date highlights the importance of the SPD to the employee at a time (during the first months of employment) when the employee is most likely interested enough to read it.

I like the idea of handing out SPD's at employment, but if the actual entry is months later, then on or a few days before the entry date, I would remind the employee that she or he received the SPD and offer another copy if they want one then.

[david rigby]

DOL Reg. 2520.104b-2(a):

"... on or before..."