SPD renewal rules require which of the following?

SPD renewal rules require which of the following?

• A. Renew every 5 years; changes every 5?
• B. Renew every 15 years; provide within 30 days
• C. Renew every 10 years, every 5 years if changes; provide to participants no later than 210 days after plan year in which changes were made
• D. No renewal required

Answer: (C)

SPDs must be kept current and any changes to the plan terms must be communicated to participants within specific timeframes. The renewal rule used here states that the Summary Plan Description should be updated on a regular cycle, and if there are changes, those changes must be reflected promptly. Specifically, updates should occur at least every 5 years if there have been changes, and the plan must provide participants with a Summary of Material Modifications no later than 210 days after the end of the plan year in which the change was adopted. If there are no changes, the renewal cycle is effectively every 10 years, but any modification triggers a sooner update and distribution. This is why the correct approach is to renew the SPD on a 10-year baseline, update every 5 years if changes occur, and distribute the modification information to participants within 210 days after the plan year end in which those changes were made. The other options conflict with the requirement to inform participants within that 210-day window and with the ongoing duty to keep the SPD current when changes occur.

SPDs must be kept current and any changes to the plan terms must be communicated to participants within specific timeframes. The renewal rule used here states that the Summary Plan Description should be updated on a regular cycle, and if there are changes, those changes must be reflected promptly. Specifically, updates should occur at least every 5 years if there have been changes, and the plan must provide participants with a Summary of Material Modifications no later than 210 days after the end of the plan year in which the change was adopted. If there are no changes, the renewal cycle is effectively every 10 years, but any modification triggers a sooner update and distribution.

This is why the correct approach is to renew the SPD on a 10-year baseline, update every 5 years if changes occur, and distribute the modification information to participants within 210 days after the plan year end in which those changes were made. The other options conflict with the requirement to inform participants within that 210-day window and with the ongoing duty to keep the SPD current when changes occur.