Each plan participant and beneficiary must receive a copy of the Summary Plan Description and a statement of ERISA rights. These documents must be provided within how many days after a person becomes a participant or receives benefits?
A) 14 days
B) 30 days
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C) 60 days
D) 90 days
A) 14 Days
Incorrect. Try again!
B) 30 Days
Incorrect. Try again!
C) 60 Days
Incorrect. Try again!
D) 90 Days
Correct.
Distribution rules require a plan administrator to furnish to each plan participant and beneficiary receiving benefits under the plan a copy of the Summary Plan Description and a statement of ERISA rights within 90 days after he first receives benefits or becomes a plan participant, or if later, within 120 days after the plan becomes subject to the reporting and disclosure provisions of ERISA.
ERISA also requires a plan administrator to provide a copy of the latest Summary Plan Description upon the written request of a participant or beneficiary. The penalty for failure to comply is $110 per day. (Source: "ERISA Facts"; The National Underwriter Company)
Did you know? On Aug. 17, the Department of Health and Human Services issued proposed rules requiring standard forms that will make understanding health coverage and comparing options easier. The Summary of Benefits and Coverage will be available in 2012, and will provide a way for consumers to easily understand health care choices. [See Comparing health plans just got easier]
Under these HHS rules, health plans and issuers must also provide notice at least 60 days before any significant modification is made in the plan or coverage during the plan or policy year.
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