ERISA Compliance is a Matter of Organized Documentation and Filing, Which CIP Handles for You.
Documentation isn’t everyone’s favorite part of offering employee benefits and health insurance, but we all want to avoid the problems that result from not keeping documentation organized and within regulatory compliance. Commonwealth Insurance Partners therefore helps employers take care of the essential documentation requirements for HR, ACA and ERISA compliance.
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. ERISA requires plan administrators to maintain and distribute SPDs (Summary Plan Descriptions) to plan participants. Plan Documents are required to be in compliance, and documentation is required outside of basic-plan summaries and summaries of Benefits and Coverage.
Despite this federally required regulation, 71% of brokers say many clients do not have an SPD.
The Penalties of Non-Compliance with ERISA:
- 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
- Compliance failure could result in audits by the Department of Labor
Clients of Commonwealth Insurance Partners can rest assured that their ERISA-compliance paperwork (although primarily digital) is covered and filed as needed, and organized for easy access. We cover the following compliance tasks for you:
- Create an organized system that generates SPDs and Plan Documents
- Maintain client data safely and securely
- Update SPDs and Plan Document templates to reflect changes in law
- Additional Benefits:
- A ‘Summary of Material Modification’ template
- An SBC or a ‘Summary of Benefits and Coverage’ template
- SPD distribution guidelines will generate when you create a set of documents, so you understand how to distribute the SPDs.