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Summary Plan Description (SPD) Basic Template

This template provides the basics in establishing a Summary Plan Description

Updated over 3 weeks ago

[COMPANY NAME] SECTION 125 CAFETERIA PLAN

SUMMARY PLAN DESCRIPTION

Effective Date: [EFFECTIVE DATE]

PLAN INFORMATION

  • Plan Name: [COMPANY NAME] Section 125 Cafeteria Plan

  • Plan Sponsor: [COMPANY NAME]

  • Plan Administrator: [COMPANY NAME or ADMINISTRATOR NAME]

  • Plan Year: [START DATE] to [END DATE]

  • Employer ID Number: [EIN]

ELIGIBILITY

Employees eligible to participate in this Plan include: [ELIGIBILITY CRITERIA, e.g., "Full-time employees working 30+ hours per week after 90 days of employment"]

BENEFITS AVAILABLE

This Plan allows eligible employees to pay for the following benefits on a pre-tax basis:

  • Employee contributions for employer-sponsored health insurance

Optional Benefits (if offered by employer):

  • Health Flexible Spending Account (maximum annual contribution: $[AMOUNT])

  • Dependent Care Assistance Program (maximum annual contribution: $[AMOUNT])

  • [OTHER OPTIONAL BENEFITS]

CONTRIBUTION REQUIREMENTS

  • Employer-Required Contributions: Premiums for employer-required coverage may be paid pre-tax through this Plan.

  • Voluntary Coverage: [SELECT ONE: "Premiums for voluntary coverage (employee-elected) may also be paid pre-tax through this Plan" OR "This Plan does not allow pre-tax payment for voluntary coverage"]

  • Minimum Employee Contributions: [SPECIFY IF THERE ARE MINIMUM EMPLOYEE CONTRIBUTION REQUIREMENTS, e.g., "Employees must contribute at least $XXX annually to participate in the Health FSA" or "There are no minimum contribution requirements for this Plan"]

ELECTION PROCEDURES

  • New employees: Elections must be made within [NUMBER] days of becoming eligible

  • All employees: Elections must be made during annual open enrollment

  • Elections remain in effect for the entire Plan Year unless a qualifying event occurs

QUALIFYING EVENTS

Mid-year election changes are permitted only for qualifying events, including:

  • Marriage, divorce, or legal separation

  • Birth or adoption of a child

  • Death of spouse or dependent

  • Change in employment status

  • Change in dependent eligibility

  • Change in residence affecting coverage

USE-OR-LOSE RULE

Any unused amounts in FSA or DCAP accounts at the end of the Plan Year will be forfeited, except:

  • [INCLUDE IF APPLICABLE: A grace period until [DATE] is provided for incurring eligible expenses]

  • [INCLUDE IF APPLICABLE: Up to $[AMOUNT] of unused Health FSA funds may be carried over to the next Plan Year]

CLAIMS PROCEDURES

  • Submit claims to: [CLAIMS ADMINISTRATOR/ADDRESS]

  • Claims must include: [REQUIREMENTS]

  • Submission deadline: [DEADLINE]

  • Denied claims may be appealed within [NUMBER] days

TERMINATION OF PARTICIPATION

Participation ends upon:

  • Termination of employment: [SELECT ONE: "Effective on the date of termination" OR "Effective at the end of the pay period in which termination occurs" OR "Effective at the end of the month in which termination occurs"]

  • Loss of eligibility

  • Failure to make required contributions

  • Termination of the Plan

PLAN AMENDMENT OR TERMINATION

The Employer reserves the right to amend or terminate this Plan at any time.


This is a summary of the Plan. The complete Plan Document is available from [CONTACT INFORMATION].

Plan Administrator Signature: _______________________

Date: _______________________

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