ERISA

 

The Employment Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection from individuals in these plans.  ERISA is governed by  the U.S. Department of Labor and enforced by the Employee Benefits Security Administration (EBSA).  It is almost guaranteed you or yours clients (brokers) are not in ERISA compliance - and that going to be a costly error if not corrected quickly!

Why are so Many Employers out of Compliance?

  • Overall lack of awareness in marketplace
  • Carrier Documents thought to be compliant
  • Confusion due to a complexity of the regulations
  • Prior limited enforcement

Enforcement

The enactment of the ACA has caused an increase in ERISA enforcement, which could lead to a number of penalties for an employer.

  • HHS- $1,000 may apply for each willful failure to provide a summary
  • IRS can impose $100 per day per individual affected.
  • DOL- can impose civil and criminal penalties, including:
    • $86,500- Failure to File Complete and Accurate Form 5500
    • $241,000- Failure to provide SPD to participant
    • $10,780- Failure to provide SPD to participant

becoming compliant - what's involved

  • An employer with a welfare benefit plan is required to provide participants a Summary Plan Description within 90 days of the start of coverage
  • If modifications or reductions in benefits are made in a plan year, an employer is required to send participants legal ntoices
  • All employees eligible to enroll in group health plans need to receive a HIPAA notice before enrolling in the plan
  • Many other life changes trigger notices that ERISA requires employers to send legal notices to plan participants

For a calendar of the plan documents and notices, click on myHRcounsel's Dynamic ERISA Calendar below:

 
 
 
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ERISA Complete™

  • $140.00/mo Flat Fee; $220.00/mo Flat Fee with (1) IRS Form 5500 included ($750 per additional 5500)
  • For Health and Welfare plans:
  • Legally prepared Premium documents in the ERISA Dynamic Compliance Calendar
  • Legally completed SPD/Wrap & POP documents (Health & Welfare plans)
  • Unlimited access to ERISA attorneys & Access to complete library of required ERISA plan notices
  • $5M ERISA Service Guarantee

Questions about ERISA Complete?

 
 
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myERISA wrap™

  • $50.00/mo Flat Fee (1 year term)
  • For Health and Welfare plans:
  • (1) Legally completed SPD/Wrap document (Health & Welfare plans)
  • Access to complete library of required ERISA plan notices
  • Access to complete library of ERISA documents (SMM's, SAR's, etc.)
  • Access to employment and ERISA law checklists & updates
  • $5M ERISA Service Guarantee

Questions about myERISA Wrap?

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