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2020 ERISA Wrap SPD Requirement – Are You in Compliance?

The requirement that all sponsors of group health and welfare plans have an ERISA Wrap Summary Plan Description (SPD) remains in effect for 2020. Employers found in non-compiance with the 2020 ERISA Wrap SPD requirement face potentially huge ACA fines. Here’s what you need to know if you are an employer sponsor of a group health plan.

Application

The 2020 ERISA Wrap SPD requirement applies to all employers sponsoring a group health insurance plan.

Requirement

To be in compliance with the 2020 ERISA Wrap SPD requirement, the document must be drawn up by the employer or its agent containing the necessary information. It is then signed by the employer, and a copy is given to every employee eligible to participant in the plan. Then, the document must be kept on file for future reference.

The ERISA Wrap SPD on file will be accessed to give a copy to new hires, fulfill requests for a copy by employees, and in the event of an IRS or DOL audit.

Delivery to employees

The 2020 ERISA Wrap SPD requirement to deliver a copy of the document to every employee eligible to participate in the plan can be met by personal hand delivery, USPS mail, or other personal delivery service (UPS, FEDEX, etc.).

Electronic delivery is allowed so long as the employee has access to a computer and printer at his or her regular work station and the employer provides a printed copy upon request.

Whichever of the above delivery methods an employer chooses, the company must document the delivery to each employee as evidence this rule was met.

Failure in Compliance

When an employer cannot produce the ERISA Wrap SPD within 30 days of a request by an employee, agent, or auditor, the company may be declared out of compliance with the law. This can mean the company incurs ACA fines of up to $110 per employee, per day, until the document is produced as requested.

Periodic Updates

In addition to the initial delivery of the ERISA Wrap SPD to employees, the document must be updated and re-delivered to participants every five years when there is a change to any part of the plan (such as a change in insurance carrier).

For the 2020 ERISA Wrap SPD requirement, this would apply to documents dated 2014, or older, respectively.

Meeting the 2020 ERISA Wrap SPD Requirement

Core Documents provides employers with everything they need to put in place an IRS- and DOL-compliant ERISA Wrap SPD in PDF format for just $99. This cost reflects a one-time setup fee, not an annual charge.

Avoid the $110 per day, per employee fine —

Order Core SPD today!

$149 one-time fee in Deluxe Binder + PDF email

$99 one-time fee in PDF email only

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Please note:

  1. Most complete document orders placed by 3 PM will be emailed out the same day Monday through Friday. Orders placed on weekends are emailed out Monday morning.
  2. Keep in mind that December, January, and February are our busiest months of the year and documents are processed in the order they are received. The Rush Order fee ($25) simply brings your document to the top of the stack to be processed immediately.
  3. Refund Policy: Purchaser understands that goods and services provided by Core Documents, Inc. are non-refundable. Orders canceled prior to shipping are subject to cancellation fees that are applied to the cost of goods and services provided during the review, draft, and preparation of your order.

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Video: ERISA Wrap SPD

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Download the 2020 ERISA Wrap SPD Brochure and Forms:

Meet the 2018 ERISA Wrap SPD Requirement with Core SPD

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Download the FREE Core Documents Section 125 Cafeteria/POP Plan Employer Guide:

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Download the FREE Core Documents Health Reimbursement Arrangement Employer Guide:

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