Summary Plan Description

Posted in Human Resource Terms, Total Reads: 784
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Definition: Summary Plan Description

The summary plan description is needed for the plans that are designed to benefit employees in an organization. In order to communicate the plan in an easy understandable way to the employees, the management of that organization puts up the summary of the pan in the form of Summary Plan Description.


This contains details like name and type of plan, eligibility requirement for the plan, period of the plan, benefits under the plan, insurance claim for the plan and other details as per the policies of the organization.


Summary Plan Description entails the relevant points of the plan in a manner where even the least educated person in an organization will be able to comprehend the plan. Based on the summary plan description, the employees give their acceptance to be a part of the plan or not.


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