The document discusses the importance of complying with the Employee Retirement Income Security Act of 1974 (ERISA). It states that the Department of Labor (DOL) enforces ERISA and estimates that 75-90% of businesses are out of compliance. Small employers with fewer than 250 employees are especially at risk of being non-compliant. All employers must provide an ERISA Summary Plan Description and are required to comply with ERISA if they offer any health or welfare benefits, such as health insurance, dental, vision, retirement accounts, and disability. Non-compliance can result in civil or criminal penalties ranging from $10,000 to hundreds of thousands of dollars in fines.
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Insurance & Risk Solutions
5005 Loomis Road, Greenfield, WI 53220
Phone: (414) 421-3800 Fax: (414) 421-6145
visit us at StarrGroup.com
Because of healthcare reform,
more attention is being paid to
the Employee Retirement Income
Security Act of 1974 (ERISA).
The Department of Labor (DOL)
governs ERISA and performs audits,
and estimates that 75-90% of
businesses are out of compliance.
Small employers (fewer than 250
lives) are at higher risk of being out
of compliance because they may not
have HR specialists who are aware of
these requirements.
ALL EMPLOYERS MUST provide an
ERISA Summary Plan Description
(SPD) upon enrollment of any of
the benefits listed below, first day
of coverage, special enrollment and
upon request.
With the exception of government
agencies and churches, ERISA
language is required for ALL
EMPLOYERS down to two lives.
ALL EMPLOYERS that offer health or
welfare plans are required to comply
with ERISA. Benefits that fall under
the Health and Welfare category
can include: health, dental, vision,
retirement accounts, vacation/PTO,
employee assistance programs,
scholarships, daycare, prepaid legal,
death benefits, disability, wellness
plans, HRAs, FSAs, group life, holiday
pay, unemployment, serverance,
prescription plans, apprenticeships
and training.
There is no statute of limitations
for Form 5550. Some ERISA wrap
providers may include 5500 filings
as part of the wrap service, but
all ERISA document providers
indemnify the client. Whoever files
the documents holds the financial
liability.
Wrap Documents: ERISA & DOL
Our vision is to lead
in the creation and delivery of
Risk Reducing Services
and Insurance Programs for our
clients, improving their
Total Risk Wellness.
Wrap Documents: ERISA & DOL
ALL employers who offer benefits
MUST have a “wrap” document
75% of employers
are receiving
compliance
requests now, and
100% by 2018.
7 days to respond
in full or face full-
blown financial
and benefit audit
performed by DOL/
IRS
Civil and criminal
penalties can range
from $10,000 to
several hundred
thousand dollars.
75%
7
$$$
Consult with an ERISA Wrap provider, ERISA attorney,
or the DOL for any changes or clarifications.
Some items the DOL asks for include but are not limited to:
•Summary Plan Descriptons •Certificate of Creditable Coverage
•WHCRA enrollment notices and annual notices •COBRA Notices
•Fidelity Bonds •Financial Records •Special enrollment rights notices
•Medicaid or CHIP notices
•Administrative meeting minutes pertaining to the Plan
•Student Aid Reports •Michelle’s Law •Newborn’s Act