The Employee Retirement Income Security Act (ERISA) is a complex law that sets reporting and disclosure standards—and fiduciary responsibilities—for pensions and health benefit plans. It helps protect the rights of employees enrolled in these programs.
A common misconception is that ERISA applies only to plans with 100 or more participants. But in fact, the law applies to nearly all health plans with at least one participant.
ERISA is enforced by the U.S. Department of Labor. Non-compliance can result in substantial financial penalties, payable to both the government and aggrieved employees. And ERISA audits and enforcement actions are on the rise. The government is using the revenue from non-compliance fines to help offset the cost of the Affordable Care Act (ACA). So it’s vital that an organization’s health plan administrators abide by the ERISA’s reporting and disclosure mandates.
Disclosure requirements include creating and distributing plan documents, such as summary plan descriptions (SPDs), summary material modifications (SMMs), and summary annual reports (SARs). Strategic Employer Planning can help you fulfill these requirements and meet your legal obligations. Helping you sleep well at night lets us sleep well at night, too.