SPD distribution

[Guest Wislndixie]

I currently use the EBIA cafeteria plan book as my reference. I can't seem to find a timetable as to when the SPD must be distributed in a "Premium Only Plan". I know that the SPD must be distributed to a FSA or DCAP particpant within 90 days, but don't find it for POP's. Also, what methods of distribution are acceptable..Must you physically give a SPD to each employee?

[Guest Joe Vasko]

The same 90 days apply to a POP. The DOL requires that each participant be receive a copy of the SPD, but am not sure if this can be done via internet. We make each participant sign a "Receipt of SPD" form once the SPD is delivered.

[Linda]

A technical point -- a premium only 125 plan is not a plan subject to ERISA. So, the SPD rules do not actually apply to a POP. Of course, the SPD rules apply to the underlying program for which contributions are made (i.e., medical, dental, LTD, life insurance).

[Guest Wislndixie]

So Linda, are you saying that a SPD is not required under a POP? (as far as the 125 goes), as long as the underlying benefits Ie, health, dental, life etc. Provide their own SPD's via booklets?

Mike

[Linda]

Right. A POP is a fringe benefit plan under IRS 6039D but is not a "plan" subject to ERISA. (That's why a POP files a Form 5500 with the IRS but not the DOL.) Instead of a separate SPD, you may want to describe the POP as a feature of the underlying benefit.