While considering year-end tasks and planning for the upcoming year, qualified plan sponsors should think about whether they need to revise and/or reissue their summary plan descriptions (SPDs) in 2022.
ERISA requires that a qualified plan sponsor provide to participants and beneficiaries an SPD containing a general description of the plan's provisions, identifying plan information (e.g., the employer identification number (EIN) and plan number), a statement of participants' rights under ERISA, and other important disclosures.
When the information in the required disclosures changes and/or a plan sponsor materially modifies a plan, the plan sponsor must issue an updated SPD or deliver a summary of material modifications (SMM) describing the specific change.
In addition to satisfying ERISA's statutory disclosure obligations, an SPD or SMM is a convenient vehicle for a plan sponsor to communicate other plan terms and procedures that may help manage risk such as a statute of limitations for a participant to file a claim against the plan, arbitration and class-waiver provisions, choice of law and venue provisions, and cybersecurity best practices for participants.
Given this background, plan sponsors are well served by periodically updating and distributing SPDs.
In general, SPDs must be provided to plan participants and, if applicable, beneficiaries who become eligible to receive plan benefits following a...
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