What does SPD stand for in a benefits context?

In the context of employee benefits, SPD stands for Summary Plan Description. This document is a critical component in providing information about an employee benefit plan. The SPD serves several important functions, including outlining the plan's benefits, eligibility requirements, and procedures for obtaining benefits. It is designed to inform plan participants and beneficiaries about their rights and obligations under the plan.

The Summary Plan Description must adhere to the Employee Retirement Income Security Act (ERISA) requirements, ensuring that participants have access to essential information in a clear and accessible format. This transparency helps employees understand the details of their benefits and ensures compliance with federal regulations.

By providing a comprehensive overview of the plan, the SPD plays a significant role in promoting informed decision-making among employees regarding their benefits and entitlements.