Summary Plan Description (SPD)

An SDP is a required, comprehensive, easily understood document all employers must provide to all employees who participate in Employee Retirement Income Security-Act covered health benefit or retirement plans.The SPD is a detailed guide to the benefits the program provides, as well as how the plan works including when the employees become eligible to participate in the plan, how the benefits are calculated and paid, etc. An SDP explains the rules of the ESOP, procedures for questioning or lodging complaints over ESOP operations, and names and addresses of the sponsor and fiduciaries. All ESOP participants must receive the document within 90 days of becoming a participant, and the SPD must be updated when material plan amendments are made, or, if there are none, every five years.

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