Understanding ERISA Requirements: Why Plan Documents and SPDs Matter

If your organization offers employer-sponsored retirement or welfare benefit plans, you’re likely subject to the Employee Retirement Income Security Act (ERISA). This important law establishes specific requirements designed to protect participants and ensure transparency — and two key components are the plan document and the summary plan description (SPD).

A plan document serves as the formal blueprint of your benefit plan. It outlines the rights of participants and beneficiaries, details how the plan is funded, and specifies eligibility requirements. On the other hand, the SPD is the participant-facing version — a clear, easy-to-understand explanation of how the plan works. It describes key processes such as how to file a claim, when benefits are paid, and the reasons a claim might be denied.

ERISA mandates that plan sponsors furnish SPDs to participants at certain times — such as when an employee first becomes eligible and after significant plan changes. Failing to meet these requirements can lead to costly penalties and compliance risks.

Our team can help you ensure your plans meet ERISA’s standards, keep documentation up to date, and communicate clearly with your employees. Contact us today for expert guidance on managing your plan documents and SPDs with confidence.

About Bruce & Company, P.S.C.

Founded in 1976 by Gregory T. Bruce, Bruce & Company, P.S.C. is a full-service accounting firm proudly serving clients regionally, nationally, and globally, with our central office located in Madisonville, KY. For more than four decades, we’ve delivered trusted expertise in tax, financial planning, and auditing. Our knowledgeable team is dedicated to providing personalized service and practical solutions to help individuals and businesses achieve their financial goals. Contact us to learn more about how we can support you!