If a Summary Plan Description (SPD) has more than 200 pages, is it really a summary? Over the decades since ERISA was established, the fear of legal risk has superseded the requirement for SPDs to be “understood by the average plan participant.”
The average American reads at an 8th-grade level. One study found the average SPD is written at a 15th-grade level, which equates to a junior in college.
Whether it’s your annual notices (GINA, HIPAA, CHIPRA, SBCs) or lengthier plan design documents (SPDs, SMMs, SARs), dozens of clients have come to us looking to simplify compliance communications.