For small plans, what percentage of non-English literate participants mandates the provision of the SPD in that language?

The requirement for providing a Summary Plan Description (SPD) in a participant's primary language is important for ensuring that all participants understand their benefits and rights. According to guidance from the Department of Labor, if 25% or more of the participants in a plan are literate only in a language other than English, the plan administrator must provide the SPD in that language. This rule aims to enhance communication and accessibility for non-English speaking participants, ensuring they have the necessary information to make informed decisions regarding their retirement benefits.

This threshold allows for the consideration of significant populations within small plans that may have language barriers, ensuring they receive information about their plan in a manner they can understand. This requirement supports regulatory compliance and enhances participant engagement by fostering a more inclusive environment.