Do you have a Summary Plan Description (SPD) in place when the Department of Labor comes knocking on your door?
Over the past 6 months Bedrosian & Associates has been to multiple seminars where TASC and other administrative services keep bringing up how the Department of Labor is on a hiring frenzy. The main reason for the hiring increases is to go after businesses for non-compliance which in turn collects more dollars for our government.
Whether your company is renewing early or at your next renewal it is more important than ever that you begin considering ERISA compliance. Under ERISA (Employee Retirement Income Security Act of 1974), any client offering health and welfare benefits and has at least 1 employee enrolled in any plan must provide an ERISA Compliant Summary Plan Description (SPD) to that employee for that plan.
What is an ERISA Compliant Summary Plan Description?
An ERISA Compliant Summary Plan Description is the primary document that gives information about the health and welfare plan or plans that the employee or employees are enrolled in. It indicates what benefits are available under the plan, the rights of the participant and beneficiaries under the plan, and how the plan works. Most companies with less than 100 employees are out of compliance nationwide. We would advise to take a proactive approach to getting in compliance rather than waiting for the audit email to arrive and then have to devote time and resources to respond to the DOL within 10 days.
How will getting in compliance now effect your SPD if your group renews early?
If your company has decided to accept the early renewal offer you must complete a Summary Material Modification or your Summary Plan Description will be out of compliance. The Summary Material Modification must be completed and sent out to all employees. If you are a ERISAEdge client of TASC please contact your account manager when the change occurs so that they can issue a Summary Material Modification to get your plan back in compliance by revising the renewal date within the SPD for your medical plan. In addition there are administration companies able to assist those 100+ employee groups regarding the 5500 filing.
Any clients of Bedrosian & Associates will be offered discounts if enrolling in ERISAEdge with TASC.
Does your company need assistance to get back in compliance? If Bedrosian & Associates can be of any assistance please do not hesitate to Contact us for more information.