Who Needs an ERISA Wrap Document? According to the Department of Labor, every small business!
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that requires ALL employers to regularly provide participants with a written document containing information regarding how their welfare benefits plan work, as well as their plan rights and obligations. This document is called a Summary Plan Description (SPD) and is required for all employee welfare benefits plans (medical, dental, vison, Life, disability, EAP, etc) as defined by ERISA.
The Dept of Labor (DOL) audits employer welfare benefit plans for compliance with ERISA. With ERISA compliance audits is on the rise, expect an audit within the next 5 years. Having the proper SPD will allow an employer to better prepare for an audit and will go a long way in showing good faith compliance with the law.
There may be penalties for employers who do not have a written SPD or who do not distribute one to participants.
We know of vendors who can help prepare the necessary ERISA wrap documents for your business. Please contact us for additional information.