|
Welfare Benefit Plan ERISA News & Views - April 2010 | |
|
|
Announcing
ERISA Pros' Document Disclosure Package
ERISA Pros' new package of customized forms, instructions, and checklists take
the guesswork and hassle for employers out of
meeting ERISA's disclosure and delivery
requirements. ERISA Pros makes document delivery easy, efficient, and cost effective - whether an employer uses paper or electronic means.
The
Department of Labor (DOL) requires that employers disclose certain Plan
information to Participants through various reports, such as Summary Plan Descriptions (SPDs), Summary Annual Reports (SARs), Summary of Mateial Modifications (SMMs),
and other ERISA documents. The DOL imposes strict requirements as to
the content, timing, frequency, and method of delivery of these
documents.
Electronic
communication is replacing paper correspondence. An employer can enjoy
significant savings in printing costs, time, and labor by
delivering materials electronically on its website.
However, this method involves several additional steps
and forms, such as delivering a properly drafted "Notice" and
"Disclosure" to Participants and obtaining a "Consent" from them prior
to actual delivery of materials.
Documents must be delivered to Plan Participants in a
way "reasonably calculated to ensure actual
receipt." Paper and electronic delivery are acceptable
methods. However, merely placing a supply of documents in the
employer's break room, posting them on the company's website, or
instructing employees to pick up a copy from the HR department does not
satisfy the DOL delivery requirements An employer may be fined up to $110 per day
for each day that these documents are delivered after the deadline.
This penalty applies for each Plan, and it is cumulative. Where an
employer maintains separate life, health, dental and disability plans
that are not part of a single wrap plan arrangement, the $110 a day
penalty is applicable to each plan. Delivering that
employer's SPDs just 30 days late subjects it to a fine of
$13,200! ERISA Pros' "Wrap-Tight"sm SPD approach reduces that liability to only $3,300 for all four plans. |
|
|
|
|
|
Wrap-TightSM
Plan Documents
SPDs
Health & Welfare
Benefit Plans Only
Call Us:
678-443-4003 or
1-866-488-6582 toll free
|
|
|
"How ERISA Will Affect Your Group Insurance Clients in 2010"
(Put the Date You Wish to Attend in the "Comments" Box at the Bottom of the Sign Up Form)
Tuesday, April 20, 11:00-11:30
Tuesday, May 4, 11:00-11:30
Tuesday, May 18, 11:00-11:30
|
|
© 2012 ERISA Pros, LLC, All rights reserved. Information on ERISA Pros' website, its newsletter, “News & Views,” and its blog, “ERISA Wonk,” is published as a general informational source. Information and articles are general in nature and are not intended to constitute legal or tax advice in any particular matter. Blog posts and comments reflect the personal views of their respective authors - not those of ERISA Pros. Transmission of this information does not create an attorney-client relationship. ERISA Pros, LLC is not a law firm and is not giving legal or tax advice. It does not warrant and is not responsible for errors or omissions in the content on its website or in its newsletters. ERISA is a complicated and confusing law. Summary Plan Descriptions (SPDs), Wrap Plan Documents, and Form 5500s require review and updating by qualified ERISA compliance professionals.
|
