What is an SPD in HR?
After designing a health plan, negotiating contracts and assembling a provider network, HR practitioners often view the drafting of their summary plan descriptions (SPDs)—the documents that deliver the information plan participants need to know about the plan’s benefits and their rights under it—as an afterthought.
What is the difference between SPD and SBC?
The SBC provides consumers with information so they can compare benefits and select a health insurance plan that meets their needs. In contrast, the SPD is an easy to understand document that tells participants what benefits the plan provides and how the plan operates.
What is SPD health insurance?
One of the most important documents participants are entitled to receive automatically when becoming a participant of an ERISA-covered retirement or health benefit plan or a beneficiary receiving benefits under such a plan, is a summary of the plan, called the summary plan description or SPD.
Do you consent to receive electronic benefit plan disclosures?
However, disclosure can be provided electronically without consent, and can even be provided in the form of an audio recording if appropriate to the communication content, if the following conditions are met: The recipient has an effective ability to access the medium through which the notice is provided.
Who must receive an SPD?
For newly created plans, an SPD must be distributed to participants and beneficiaries within 120 days after the plan is first instituted. Additionally, a plan sponsor must provide a SPD within 30 days of it being requested by a plan participant.
Is an SPD required?
Simply put; an SPD is required whenever a cable enters or leaves the internal zone (zone 1) from the external zone (zones 0a or 0b). There is also a requirement for additional SPDs to be installed each time a cable or service crosses an internal zonal boundary.
How often does an SPD need to be updated?
If there have been material changes to the plan, an updated SPD must be republished and distributed at least every five years. It is hard to imagine a plan that has not made a material change in the last five years, so, practically, almost all plans are required to distribute an updated SPD every five years.
What does the cobra of 1985 allow an employee to do?
Passed in 1985, COBRA is a federal law that allows employees of certain companies to continue their health insurance with the same benefits even after they stop working for their employer. Plan Coverage: Your employer’s group health plan must be covered by COBRA.
Is an SPD a plan document?
The summary plan description (SPD) is simply a summary of the plan document required to be written in such a way that the participants of the benefits plan can easily understand it. Unlike the plan document, the SPD is required to be distributed to plan participants.
Can 401k participant notices be sent electronically?
Some of this information must be provided regularly and automatically. Other kinds of disclosures are available upon written request, free of charge or for copying fees. Plan administrators can give notices to participants electronically (online) if it meets certain conditions.
Can SPDs be distributed electronically?
Employers may electronically distribute the SPD to employees with the ability to access the electronic media where they perform their job duties. In other words, they use a computer with internet access in their daily work.
Are SPDs required?
What is the history of Mercer Group Ltd?
In 1937, William M. Mercer, Ltd, began in Canada and grew to become a premier provider of actuarial and benefits consulting services. Acquired by Marsh & McLennan Companies in 1959 and merged with its own employee benefits department, the firm expanded through growth and acquisition to become a global leader in health, retirement,…
Why work with Mercer?
For generations, we have provided clients with actionable insights and forward-thinking solutions, and as our global reach and resources have expanded, so have our capabilities. Today, Mercer works with clients in 130 markets around the world, helping them continue to make the future brighter for their employees.
How many employees does Mercer have?
Mercer’s approximately 25,000 employees are based in 43 countries and the firm operates in over 130 countries. Mercer is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 76,000 colleagues and annual revenue of over $17 billion.
What does Marsh & McLennan Companies do for Mercer?
Marsh & McLennan Companies. Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Mercer’s more than 25,000 employees are based in 44 countries and the firm operates in over 130 countries.