“I had never heard of a SPD "Wrap" document before meeting with Spectrum. They educated me on the ERISA compliance requirements surrounding the SPD and even helped me build one. They say you don't know what you don't know - well I'm very satisfied to say that now I do know and can rest easy at night knowing that my business is compliant and we're managing our benefits the right way."
Owner; Construction Company
Compliance Solutions at your fingertips.
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Spectrum Benefits Solutions and HR Workplace Services
- Client Portal available providing everything you need to remain compliant
- Annual Compliance Calendar to help stay on track with key employment-related deadlines throughout the year
- Notification updates on state specific legislative and mandate changes in real-time
- Access to unlimited professional HR consultation
- SPD "Wrap" Document preparation
- ACA 1094/1095-B and 1094/1095-C preparation and reporting support
- Employee handbook build and support
- Digital Learning Center available to support HR knowledge and growth
- Real-time 24/7 access to expert Human Resource and Management Support services
Did You Know: SPD "Wrap" Document
ERISA compliance requires employers to provide a consolidated summary plan description (SPD) that clearly outlines all the details of their employee benefit plans, including information from multiple insurance carriers or plan providers, to participants, ensuring they understand their coverage and rights under the plan, and must include specific details like plan name, sponsor information, eligibility terms, benefit descriptions, and contact details for claims administration; all while adhering to the legal requirement of distributing this information to eligible employees within a specified timeframe, typically within 90 days of becoming newly covered under the plan. This document is called a SPD "Wrap" Document.
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What should be included in a SPD "Wrap" Document:
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Plan details:
Name of the plan, plan sponsor information, contact details for plan administrator
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Eligibility requirements:
Who is eligible to participate in the plan, including employment status and waiting periods
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Benefit descriptions:
Clear explanation of the covered benefits, including limitations and exclusions
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Claims procedures:
How to file a claim, appeals process, and contact information for claims administration
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Funding information:
Details about how the plan is funded, including employer and employee contributions
Potential consequences of non-compliance:
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Fines:
Employers who fail to provide a wrap SPD or do not distribute it correctly may face penalties from the Department of Labor (DOL)
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Legal issues:
Employees may initiate legal action if they are not properly informed about their benefits due to inadequate or missing information in the wrap SPD
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