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ERISA Wrap SPD FAQ’s: Do you need an ERISA Wrap SPD?
Welcome to Core Documents. We appreciate your interest in our ERISA Wrap SPD plan document product and look forward to answering your questions on this Frequently Asked Questions (FAQs) page. It will answer most questions employers have about the document, including that most pressing question, “Do you need an ERISA Wrap SPD?”
What is an ERISA Wrap Summary Plan Description (SPD)?
As its name implies, the Summary Plan Description contains all of the information about the group health plan that the employer is required to give to eligible employees and their beneficiaries. That information includes the plan name and number, sponsors and trustees, employee eligibility requirements, benefits provided with co-pay and deductible amounts, claim filing and review processes, employee rights and responsibilities, and much, much more.
Do you need an ERISA Wrap SPD?
If you offer group health insurance, you are required to distribute an ERISA Wrap SPD document to all Plan participants within 120 days of the Plan’s effective date.
What happens if I don’t have one?
Failure to provide the ERISA Wrap SPD within 30 days of request could trigger a $110 a day fine per participant. It can also trigger an audit by the DOL.
Can other documents serve as a Wrap SPD?
No. Other documents such as your Section 125 POP or HRA Plan documents do not constitute an ERISA Wrap SPD for the employer group health insurance plan. Nor does your insurance company’s Master Contract, Certificate of Coverage, or Summary of Benefits. Any or all of these may be required plan documents for the plan but they do not constitute the required ERISA Wrap SPD that must be prepared by the employer.
Is there a minimum number of employees before a Wrap SPD is required?
Yes: 1.
The Wrap SPD requirement applies to all employer sponsored group health insurance offerings, including a one-person plan.
For large employers (100+) subject to Form 5500 reporting, Wrap SPDs are largely a necessity. This is especially true for employers already filing a single Form 5500 for health and welfare plans, since those employers have represented to the Department of Labor that they have a consolidated, single ERISA plan.
For smaller employers not subject to Form 5500 reporting, it is more a matter of best practices. Still, with that looming penalty, no employer should ignore it.
How much does the ERISA Wrap SPD plan document cost at Core Documents?
The one-time fee for a Core SPD document package is $99. You only pay more when there is a change in your health insurance plan(s) from year to year.
That’s right — unlike others offering these plan documents, Core Documents charges you no annual renewal or subscription fee. Your initial $99 can cover your company’s plan for one year or five or more, depending on your specific needs.
How do I get the ERISA Wrap SPD plan document for only $99 and no annual renewal fee for my business?
Core SPD document packages are delivered electronically (.PDF) and usually processed within hours.
You can order a Core SPD document package for a one-time purchase price of just $99.oo. We accept all major credit cards plus ACH/eCheck payments through your checking account. Click the button below to access our secure online ordering process.
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You may also find our posts on these topics useful:
What the ERISA Wrap SPD must communicate to employees
29 CFR 2520.102-3 – Contents of summary plan description (Wrap SPD)
Do I need a Section 125 Premium Only Plan Document?
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