Welcome to ERISA  Pros

ERISA -

ERISA (the Employee Retirement Income Security Act of 1974) is a set of federal laws and regulations that govern Welfare Benefit Plans and Qualified Retirement Plans. Employers must have a written Plan Document and are required to deliver a summary of it, a Summary Plan Description (SPD), to their Participants—regardless of how many employees participate. The SPD is the main vehicle for communicating Plan rights to Participants. Employers must also prepare and file a Form 5500 electronically for each Plan with the U.S. Department of Labor (DOL) and deliver a summary of it, a Summary Annual Report (SAR), to each Participant—unless they meet the strict criteria for the Small Plan Exception.

Does ERISA Apply to You? -

A great many employers are not in compliance and are not aware of it. Yet, almost every employer, regardless of its size or number of employees, must comply with ERISA. The only exceptions are church and government plans. Most employee benefit plans are subject to ERISA's requirements—whether they are insured or self-insured. There are very few exceptions to ERISA's applicability.

Compliance is Mission Critical -

It is mission critical for every employer to be in compliance before a problem arises. By the time the DOL knocks on your door or an employee lawsuit surfaces, it is too late. Failure to comply with ERISA can result in unnecessary, time consuming, and expensive penalties and employee lawsuits.

Wrap Plan, SPD, & Form 5500 -

We provide ERISA compliance services for Welfare Benefit Plans, such as group medical, dental, life, and disability insurance policies. We help employers get into compliance with ERISA laws and then stay in compliance.

We prepare Wrap Plan Documents and SPDs, SARs, and Summary of Material Modifications (SMMs). We prepare Form 5500s and help employers file them electronically. We also provide consulting and other services necessary to comply with ERISA. That's all we do. We don't sell insurance or any other products.

Common Misperceptions -

Experienced insurance brokers, consultants, Human Resources and Benefits personnel, accountants, and attorneys often hold several misperceptions. One is that an insurance company's group insurance policy or Certificate of Insurance is a compliant SPD. However, Certificates of Insurance are often not SPDs because they rarely contain all of the required ERISA language. Another misperception is that a Cafeteria Plan is a wrap Plan because it allows various component benefit plans to be pre-taxed. However, an employer must prepare an ERISA "wrapper." Together, the SPD wrapper plus the Certificates of Insurance and component benefit plans constitutes a compliant SPD.

Another common misunderstanding is who is responsible for preparing, filing, and delivering SPDs and Form 5500s. Most employers believe that their insurance broker, insurance carrier, accountant, or lawyer takes care of this. However, this is usually not the case. ERISA compliance is solely the employer's responsibility.