ERISA Compliance Wraps
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established private industry pension and health plans. The main purpose of ERISA is to protect the interests of employees and their beneficiaries enrolled in employee benefit plans and to ensure employees receive the pensions and group-sponsored welfare benefits promised by their employers.
ERISA Wrap Document
An ERISA Wrap Document is a document disclosures information to employees about the benefits an employer offers. A well-drafted plan document typically specifies eligibility requirements, plan participation rules and the length of coverage. It also contains important statements such as the employer’s right to amend or terminate the plan at any time.
Employers are required to provide this information to all employees. The ERISA law is overseen by the Department of Labor.
Employer-provided benefits which are deemed “employee welfare benefit plans” under ERISA include:
Hospitalization and medical plans
Dental insurance plans
Vision insurance plans
Cafeteria plans
Flexible spending accounts
Health care reimbursement accounts
Pharmacy prescription drug plans
Group term life insurance plans to include accidental death and dismemberment
Short- and long-term disability plans
HIPPA compliance
Employer ERISA Penalties
The ERISA federal law requires companies to disclose employee benefit and welfare plan information to employees. Employers may face penalties for failure to provide employees with an ERISA wrap document.
Employers may be charged a penalty of $152 per day for failing to furnish documents requested by the Department of Labor.
Employers may also be charged a penalty of $110 per day for failing to provide a ERISA wrap document to employees in a timely manner.
Participants have the right to file a lawsuit against an employer if certain plan disclosures are not met.
ERISA Compliance Services
STHRM, Inc. can keep your company in compliance with ERISA wrap documents. These documents include:
ERISA wrap document, plan document, and a summary plan description to comply with SPD requirements.
Cafeteria plan document including pre-tax premium, dependent care account, flexible spending account, and DCAP and HAS consistent with Section 125.
HIPAA compliance module including protected health information and group health plan, a business associate agreement, employee authorization, breach assessment and notice preparation services.
Health reimbursement account plan document and summary plan description.
ERISA Plan Portal Warranty
An ERISA plan portal warranty covers the subscriber and your brokers, advisors, consultants, accountants, and counsel. ERISA plan industry leading warranty includes a $1,000,000 warranty against penalties for the ERISA plan product documents. If the ERISA plan documents prepared result in a governmental penalty, an ERISA plan warranty can pay up to $1,000,000.