Definition: ERISA (The Employee Retirement Income Security Act of 1974) is a set of federal laws and regulations that govern welfare benefit plans and qualified retirement plans. Employers must have a written plan document and are required to deliver a summary of it, a Summary Plan Description (SPD), to their participants regardless of how many employees participate. The SPD is the main vehicle for communicating plan rights to participants.
Does ERISA apply to you? Most employee benefit plans are subject to ERISA’s requirements whether they are insured or self-insured. Almost every employer who offers health insurance benefits, regardless of its size or number of employees must comply with ERISA. The only exceptions are church and government plans. This has been a requirement since the inception of ERISA, however, it has not been actively enforced by the Department of Labor. We have learned that the Department of Labor is now going to be actively policing groups to ensure they are in compliance.
We at Wevodau Insurance & Benefit Strategies want you to be compliant with ERISA and all other ACA requirements. We have partnered with a local firm who specializes in Summary Plan Document preparation and provide services to help employer groups be compliant with ERISA guidelines. We will be addressing ERISA compliance with you during your renewal.