Ace the CEBS RPA 2 Exam 2026 – Unlock Your Retirement Expertise!

The correct answer is that a Summary Plan Description (SPD) must be issued within 90 days after an employee becomes a participant in the plan. This requirement is set forth by the Employee Retirement Income Security Act (ERISA), which mandates that plan administrators provide an SPD to participants to ensure they understand their rights and benefits under the plan.

The 90-day requirement helps to promote transparency and allows employees sufficient time to review the plan's details, including eligibility, benefits, and procedures for making claims. This timeline is crucial for promoting informed decision-making regarding retirement benefits.

While there are shorter time frames for certain disclosures and notices under ERISA, such as for claims procedures or changes in plan structure, the 90 days specifically pertains to the distribution of the initial Summary Plan Description. This ensures that employees are not left without essential information upon entering the retirement plan.