ERISA (The Employee Retirement Income Security Act of 1974 is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.) requires plan administrators to maintain and distribute SPDs (Summary Plan Description) to plan participants. Plan Documents are required to be in compliance
71% of brokers say clients do not have an SPD.
Employers mistakenly thought they were compliant by distributing benefits booklets and summaries or certificated of coverage. Employers were also not aware of ERISA requirements to distribute an SPD and maintain a Plan Document. It became difficult and time consuming for employers to develop the documents and compliance is expensive.
-Failure to provide an SPD or ‘Plan Document’ within 30 days of receiving a request results in a penalty of: $110/per day per participant.
-Could be subject to Audits by the DOL (Department of Labor)
-Wrap SPDs and Plan Documents wrap around insurance certificated and benefits plan booklets make sure your clients are complying with the law.
The Benefits of WrapDoc360:
Easy and intuitive system that generates Wrap SPDs and Wrap ‘Plan Documents’ our clients.
Maintains client data safely and securely.
Email us updates when Wrap SPDs and Wrap ‘Plan Document’ templates are updated to reflect any changes to the law, always up-to-date.
- A ‘Summary of Material Modification’ template
- An SBC or a ‘Summary of Benefits and Coverage’ template.
- An SPD distribution guidelines will also generate every time you create a set of documents so employers will understand how to distribute the Wrap SPDs.
- Special additional downloadable benefits notices are available to further support our clients.
- And, the fields will conveniently auto-populate when entering the same plan information, which makes the process so much easier and faster.