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Employers: Do you have the ERISA Wrap SPD?

Name: Core Documents
Brand: Core Documents
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New brochure explains DOL/ACA document requirement

Companies all over the country offer employer-sponsored group health plans, not knowing they are at risk for penalties of up to $110 per employee, per day. They assume someone else has made sure all is in order, but that’s not always the case. Ultimately, it is the employer’s responsibility to ensure that all plan documents are present and in compliance with Affordable Care Act (ACA), Department of Labor (DOL), and Internal Revenue Service (IRS) rules. This includes having the DOL- and ACA-required ERISA Wrap SPD in place.

As part of an ongoing program to educate employers on plan document requirements, Core Documents is offering a new brochure explaining the ERISA Wrap SPD. Here are some of the highlights:

Click image to download.

ERISA is the Employee Retirement Income Security Act of 1974. It is a federal law governing health and retirement plans in the private sector.
If you offer group health insurance you’re now required by ERISA law, enforced by the DOL and ACA, to distribute a Wrap SPD within 120 days of the Plan’s effective date.
Failure to provide the ERISA Wrap SPD within 30 days of request triggers a $110 a day fine per participant. Not having a Wrap SPD can also trigger an audit by the Department of Labor.
The insurance company’s Master Contract, Certificate of Coverage, or Summary of Benefits is not a Wrap SPD.
This requirement applies to all employer sponsored group health insurance offerings, including a one-person plan.

Employers: Do you have the ERISA Wrap SPD?

It is not uncommon for professionals helping a company choose, purchase, and implement a group insurance plan to miss the ERISA Wrap SPD requirement. Those working from the insurance side may be thinking that the payroll department will take care of it, but the payroll department (or company) expects the insurance broker to have done it. An employer may not bother to call an accountant to get involved with group insurance coverage, being confident the insurance and payroll people will take care of everything.

If you’re an employer who is uncertain that the proper ERISA Wrap SPD is in place for your company’s employer-sponsored group health plan, you may need help to know exactly what you need to look for in all the paperwork, as there can be more than one type of SPD in most plan document packages.

The best action to take right now is to get in touch with a specialist at Core Documents. Downloading our new Core SPD brochure is a great first step. You can find it at /corespdbrochure.