What condition must be met for a small plan to be required to provide an SPD in a non-English language?

A small plan is required to provide a Summary Plan Description (SPD) in a non-English language when 25% or more of its participants are literate in that language. This requirement ensures that the material is accessible to those participants who may not fully understand English, thus promoting effective communication about their retirement benefits.

Providing the SPD in a language that a significant portion of participants can understand enhances transparency and improves understanding of plan features, rights, and obligations. It is intended to support participants' ability to make informed decisions regarding their retirement plans.

Other conditions, such as having all participants bilingual, could create a higher threshold that isn't practical for many plans. Additionally, merely speaking English as a second language without literacy does not meet the requirement for providing the SPD in another language. The focus is on literacy because it directly relates to the ability to read and understand the legal and financial terms contained in the SPD. Thus, the criterion of 25% or more of participants being literate in a non-English language serves as a reasonable and actionable guideline for compliance.