ERISA & SPD Wrap or Summary Plan Description Wrap Documents
Recently we joined forces with a company to assist in additional forms of compliance. These compliance issues fall directly in line with the rumors of the ERISA DOL Audits. HR Service Inc and ERISA Solutions are those companies. The professional atmosphere, experienced employees, and customer service-oriented environment is appealing; yet the powerful and user-friendly tools/documents they offer is what swayed the decision. For more information on how to pass an ERISA Compliance Audit watch this presentation: http://j.mp/ErisaAuditSpdWrapDemo
SPD Wraps and the ERISA DOL Audits have been on most minds lately. The reason being is because of the recent push from the Department of Labor. Any employer who offers group benefits to their employees is required to do several things.
- Deliver a current SPD for each benefit offered or an SPD Wrap document that envelopes all benefits, this is done once to all employees every 5 years and to all new hire employees.
- Deliver all current and applicable Employee Notices to all participants. This is done annually, generally during open enrollment. (CHIP, MHPA, WHCRA, HIPAA, Medicare Part D, Ect…)
- Deliver a Health Exchange Notice. This was due last year October of 2013 but is still required to deliver to all new hire employees or if you missed the deadline.
- Any additional information like an SMM or SBC. These you will deliver at both points when you deliver the SPD Wrap document as well as when you deliver the Employee Notices.
- Have documentation for Triggering Event Notices. (COBRA, HIPAA Breach, Ect…)
- Understand and implement all Federal and State employment laws. PPACA changes monthly, almost weekly sometimes. Do you know what’s changed?
- Have a 5500 report, this is only required if you have more than 100 employees.
The fines for being out of compliance are considerable. $110 per day, per benefit, per employee, up to a maximum of $500,000. ERISA is the law governing Retirement accounts and has been around for a very long time. What people don’t know is that it also encompasses all group benefits. It used to be “If” I was over a certain size or “If” I ever got Audited. This is no longer the case. The current goal is to have Audited Every Employer who offers group benefits by the year-end of 2018. http://j.mp/ERISA_Audit_Prep
This is where HR Service and ERISA Solutions come into play. Their services can either be purchased at a reasonable price by an Insurance Broker or CPA Firm, and provided to the employers, or purchased separately on an individual base by employers at a reasonable price. See here: http://erisasolutions.com/Compliance_basics_plus.html
Stay Compliant, stay on top of the requirements and be ahead of the game. If you have any questions you can always reach out to HR Service directly www.HRServiceinc.com ; www.ERISASolutions.com or to us here at www.TaxFreePremiums.com.
Anita at HR Service Inc – 801-685-8400 x 4
My contact information is on our page here: http://www.taxfreepremiums.com/main/contactUs
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