Summary of Material Modifications (SMM) For Retirement Plans

This legal template, titled "Summary of Material Modifications (SMM) For Retirement Plans," is a comprehensive document that outlines important changes made to an existing retirement plan. It serves as an official communication tool between the plan administrator or sponsor and the plan participants, providing a clear and concise summary highlighting the modifications that have been made.

The Summary of Material Modifications (SMM) is typically required under the Employee Retirement Income Security Act (ERISA), which governs private-sector retirement plans. This template can be utilized by various entities, including employers, plan administrators, and legal professionals, to ensure compliance with the law and effectively communicate important updates to plan participants.

The document begins with an introductory section that provides essential details, such as the plan's name, effective date of modifications, and the reason behind the changes. It also specifies the legal basis for providing the SMM and includes information about where additional copies can be obtained.

Following the introduction, the template offers a comprehensive overview of the modifications made to the retirement plan. This includes changes to plan eligibility, vesting schedules, contribution limits, investment options, distribution rules, plan administration, and any other relevant provisions. Each modification is clearly described, capturing the impact it will have on the plan participants and addressing any potential concerns or questions that may arise.

Moreover, the template must adhere to ERISA's disclosure requirements, ensuring that the information is presented in a clear and easily understandable manner. It may include flowcharts, tables, or other visual aids to simplify complex concepts and facilitate comprehension.

To maintain transparency and facilitate proper understanding, the template also incorporates a section for plan participants to acknowledge receipt of the SMM. It includes a signature line for participants to confirm their understanding of the modifications and their agreement to abide by the revised terms.

Overall, the "Summary of Material Modifications (SMM) For Retirement Plans" template serves as an essential legal document to notify plan participants about significant changes made to their retirement plan. By using this template, plan administrators can fulfill their legal obligations and ensure effective communication in a clear, concise, and legally compliant manner.