ERISA Wrap Document Services
The Employee Retirement Income Security Act of 1974 (ERISA) requires that employers prepare a written Summary Plan Description (SPD) for each welfare benefit plan and distribute it to employees. An SPD contains the gist of the plan document written in a way that beneficiaries will fully understand eligibility requirements, benefits, claims and appeals procedures, and rights under ERISA. It must be written in a manner that is easily understood by participants and free of excessive technical jargon. A common approach is to combine all SPDs into one overall SPD Wrap notice, tying in the required ERISA language and simplifying the SPD notice process. ERISA regulations apply to a broad range of health and welfare plans, including Medical, Dental and Vision Plans, some EAP and wellness plans, Life & Disability Plans, and Health FSAs & HRA.
It is a common mistake for employers to think that the summary benefit coverage (SBC) they receive from their insurance provider meets their SPD requirements, or that they are exempt from compliance from ERISA documentation requirement. It is important to note that while ERISA contains an exception for group health plans with less than 100 plan participants, it applies only to reporting requirements (e.g., 5500 filings). Even if you employ only 1 person, you must still satisfy ERISA documentation requirements. Both fully insured and self-funded group health plans must comply with the federal laws governing SPDs
Sadly, the burden falls on the sponsoring employer to supplement any deficient documentation. Employers are therefore at risk for significant penalties for failing to comply. The DOL penalty for failing to provide an ERISA-compliant SPD to participants in a timely manner, or within 30 days of a written request, can be up to $110 per employee per day, per request.
Our ERISA Wrap Document Services
Davidow Financial offers ERISA wrap document services to help you remain compliant with the law. We deliver simple and inexpensive compliance solutions for our clients.
Our services include:
- Determine if you provide plans that are subject to ERISA
- Evaluate existing plan documents for compliance with latest ERISA standards
- Preparation of ‘mega wrap’ and wrap documents
- Preparation of ERISA compliant SPDs
- Preparation of Summary annual report (SAR)
- Guidance on document distribution to employees based on ERISA mandated schedule
- Plan and support amendments
- Guidance on document retention
- ERISA compliance guidance, updates and technical assistance
We work with you to remain compliant and minimize the risk of any financial penalties and reduce your exposure to employee backlash. Contact us to learn know more about our ERISA Wrap services.