Summary Plan Descriptions (SPDs)

question 9

Multiple Choice

Summary plan descriptions (SPDs) :

• A)must be provided to new employees before they begin their employment
• B)provide a brief overview of the terms of employee benefit plans
• C)can be the basis for claims that employees did not receive promised benefits
• D)are not required by ERISA

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Definitions:

Press Release

An official statement issued to media outlets providing information on a particular matter or event associated with an organization.

Required Rate

The minimum return an investor expects to achieve for the risk associated with a particular investment.

Annual Dividend

The total dividend payment a company distributes to its shareholders annually, usually derived from its profits.

Constant Dividend

A dividend policy by which a company pays out a fixed amount of dividend per share over time, regardless of the company's earnings fluctuations.