Avoiding DOL Penalties -
Being in compliance with ERISA can avoid costly government penalties. For example, failure to submit an annual Form 5500 to the DOL by the deadline can result in penalties of up to $1,100 per day. The fine for late delivery of a Summary of Material Modification (SMM) or Summary Annual Report (SAR) can be as much as $110 per day.

These penalties apply to each Plan, they are cumulative, and there is no Statute of Limitations for them. An employer with four separate Plans (group life, medical, dental, and disability insurance policies) that files its Form 5500s just 30 days late can be fined $132,000!

Reduce Unnecessary Litigation -
Employee lawsuits over denied benefits are expensive and time consuming. They can be reduced if an employer is able to show that the claim was paid properly according to the terms the SPD provided to the employee.

Avoid Jury Trials and Punitive Damages -
ERISA Cases are tried in Federal Court rather than State Court. This is a significant advantage for the employer/defendant. In federal court, there are no jury trials or punitive damages as there are in state courts. Also, in federal court, it is more difficult to overturn a Plan Administrator's claim decision.

Actual Cost Reductions -
Our proprietary Wrap-Tight^sm compliance and document system allows employers to prepare and adopt a single wrap Plan Document and deliver one Summary Plan Description (SPD), rather than having to prepare them for each separate component benefit plan. Also, that employer only needs to file one Form 5500, avoiding the often significant costs of preparing separate Form 5500s for each plan.

You Can Rest Easy -
Our plans are quite affordable, and, more importantly, they are very cost effective compared to the cost of not being in compliance. That's the nice part of it.