A Summary Plan Description is the key communication tool between a plan sponsor and the participants of ERISA-covered plans.

ERISA is a federal law enacted in 1974. Its primary goal is to regulate private sector employee-sponsored retirement plans.

Employer-sponsored retirement plans are generally divided into two primary categories: defined benefit plans and defined contribution plans, both of which are covered by the Employee Retirement Income Security Act (ERISA). Both types of plans provide a variety of advantages to employees and employers but determining which one is the best fit for any given company requires an understanding of the key differences between these plan categories. Let’s examine these plans in more