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SPD Distribution Deadlines
Penalties for Not Having A Written Plan Document/SPD
Response Penalty
The SPD must be furnished in response to a participant's or beneficiary’s written request. The plan administrator may be charged up to $110 per day if it does not provide the SPD within 30 days after an individual's request. These penalties may apply even where an SPD does not exist.
DOL Audits
The DOL has broad authority to investigate or audit an employee benefit plan’s compliance with the ERISA. Traditionally, DOL audits of employee benefit plans have focused primarily on retirement plans, such as 401(k) plans.
Benefit Lawsuits
Not having a plan document or SPD may put an employer at a disadvantage in the event a participant brings a lawsuit for benefits under the plan. Without these documents, it will be difficult for a plan administrator to prove that the plan’s terms support benefit decisions.
Frequently Asked Questions
Links and Resources
- Department of Labor (DOL) final SPD regulations from Nov. 21, 2000
- DOL’s Reporting and Disclosure Guide for Employee Benefit Plans