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SPDProsm Full Service provides comprehensive ERISA reporting and disclosure services, including preparation of Summary Plan Descriptions (SPDs), Summary of Material Modifications (SMMs) and Summary Annual Reports (SARs) for employee welfare and pension benefit plans. ComplianceAidsm also assists in filing Form 5500.

Key Benefits

Service Features

►Some employee-pay-all plans are exempt from ERISA if certain criteria are met (see SPD Q&A Summary). Employers should not provide employees with an SPD for exempt plans or they may become subject to ERISA.

If your company's employee benefit plan is subject to ERISA, all employees who participate in the plan must be given an SPD that fully and accurately explains, in understandable terms, participants' rights, benefits and obligations under the benefit plan.

For group health plans, the SPD must also include a description of participants' COBRA continuation rights. To reduce your risk of penalties and legal action, your SPD must accurately summarize your benefit plan document(s). Your plan document, insurance policies and certificates are not considered an SPD and insurer-proved benefit descriptions may not contain all the information necessary to comply with ERISA.

For employers with benefit plans subject to ERISA, ComplianceAid will review your plan documents and draft an ERISA-compliant SPD.  If you have an existing SPD, ComplianceAidsm will perform a compliance review and make necessary revisions to the SPD, consistent with your current plan documents and ERISA regulations. Submit the SPD to your attorney for review prior to distribution to your employees.

Any time your existing employee benefit plan is materially modified, or there is a material reduction in covered services or benefits, or information in the SPD is changed, plan participants must be given an SMM or an amended SPD.  An SMM or amended SPD must be provided within certain specified time periods under ERISA and HIPAA.  ComplianceAid will assist you in complying with these requirements by drafting an SMM or an amended SPD that accurately reflects any plan modifications. Submit the SMM to your attorney for review prior to distribution to your employees.

►CAUTION: Effective April 4, 2002, the IRS suspended the Form 5500, Schedule F reporting requirement for cafeteria plans, educational assistance programs and adoption assistance plans until further notice; however, the suspension does not affect annual reporting requirements under ERISA or other required schedules.

Unless specifically exempt, benefit plans covered by ERISA are required to file Form 5500.  Form 5500 satisfies the annual reporting requirements of the Department of Labor (DOL), Employee Benefits Security Administration (EBSA) and the Internal Revenue Service (IRS).  Significant penalties and fines may be imposed for incomplete or late filings and willful violations. Employee pension plans which have not filed an annual Form 5500, may be able to substantially reduce penalties through the Delinquent Filer Voluntary Compliance Program.

ComplianceAid will assist your plan administrator and CPA or attorney with compiling and electronically filing FORM 5500 via the ERISA Filing Acceptance System (EFAST), in compliance with ERISA filing procedures and deadlines.

Unless specifically exempt, an SAR must be provided to all plan participants. The SAR summarizes the information contained in your plan's Form 5500 filed with the EBSA.  The SAR must be provided to plan participants within specified time periods; however, in lieu of providing an SAR, plan participants may be given either a copy of Form 5500 or written notice that a copy of Form 5500 will be provided upon request.

If you provide an SAR to plan participants, ComplianceAid will draft an ERISA-compliant summary consistent with your filed Form 5500.  Submit the SAR to your attorney and/or CPA for review prior to distribution to your employees.

SPDProsm Self Service for employee welfare benefit plans (i.e., group health/medical, hospital, prescription drug, mental health, chemical dependency, dental, vision, life insurance, flexible spending account, accidental death & dismemberment and disability benefit plans only - not pension plans) provides you with standard forms, checklists and guidelines to help you draft an ERISA-compliant SPD, SMM and SAR. 

Select this service if you maintain a single-coverage benefit plan and you prefer to prepare the documents in-house.  For more complex benefit plans with multiple coverages (including pension plans), we recommend SPDProsm Full Service.  Once complete, submit the SPD to your attorney for review prior to distribution to your employees.

Key Benefits

Fees/Prices

The fees for SPD, SMM and SAR preparation vary based upon the type of employee benefit plan, the number of coverages, and the extent of services provided.

To request a written estimate of fees, please Contact Us.

SPDPro Self Service is FREE with your paid subscription to ComplianceAid Toolkit and includes:

1. Customizable SPD form in Microsoft® Word® format.
2. Customizable SMM form in Microsoft® Word® format
3. Customizable SAR form in Microsoft® Word® format.
4. Step-by-step instructions for each form, including sample language.

Fees subject to change without notice.

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