One or Two SPD's

[Guest]

I have a cross-tested plan using two rate groups: Owners and all other employees. Standard language is used in the plan document. The SPD simply says that the Employer's contribution is set by the Employer each year. Is this sufficient, or should the classes be set forth in the SPD. If not, can two SPD's be used, one for owners and one for nonowners? Thanks.

[Lorraine Dorsa]

There is no definitive guidance that I know of.

Our firm has written SPDs which state that there are classes of employees, that the employer determines the amount to be contributed to each class and that the members of the class will share in the allocation to that class on a comp to comp basis.

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[Earl]

dont you think classifications definitions should be revealed?

i sure do

[Dawn Hafner]

I would like to revive this topic.

We recently had an actuary prepare a plan doc for us that has classifications in the DB. He prepared the SPD only indicating the NHCE class, leaving out the fact there are two other classes, one for the President and one for the Vice President.

I have always prepared CT SPDs disclosing all classes in the plan.

Does anyone else know if it is permissible to limit the disclosure in this manner? Any cites?

[KJohnson]

I am not sure whether this answer's the quesiton, but you may want to look at:

ERISA Reg. 2520.102-4 "Option for different summary plan discriptions" answers this question. "In some cases an employee benefit plan may provide different benefits for various classes of participants... (...) In such cases the plan administrator may fulfill the (SPD requirement)by furnishing to each member of each class of participants...a copy of a(n SPD) appropriate to that class. (...) (The SPD) may omit information which is not applicable to the class of participants...to which it is furnished."

There is more to the reg so you may want to look at the whole thing.

[Steve72]

The SPD "...should also clearly identify on the first page of text the class of participants and beneficiaries for which it has been prepared and the plan's coverage of other classes"