$79 Wrap SPD
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What is a Wrap Summary Plan Document (SPD) and Why Do I Need One?
The Federal Employees Retirement Income Security Act (ERISA) requires employers who are plan administrators of their group health plans to comply with two important requirements or risk potential penalties and possible audits.
Maintain and distribute Summary Plan Descriptions (SPDs) to plan participants which accurately reflect the contents of the plan and which include specific information as required under federal law. Administer the group health plan in accordance with a written Plan Document which must be made available to plan participants and beneficiaries upon request.
Mistakenly, many companies assume that insurance Summary of Benefits and Coverages (SBCs), contracts, certificates of insurance and benefits summaries fulfill the ERISA requirements for an SPD and Plan Document–but they don’t include the required or recommended provisions that protect the plan and the employer. SBCs from the carrier and certificates of insurance are not sufficient to cover you under ERISA laws or to protect you if audited by the Department of Labor (DOL).
Penalties for Non-Compliance
Employers/plan administrators may be liable for serious penalties if they don’t provide a Summary Plan Description or have a current Plan Document:
Failure to provide an SPD or Plan Document within 30 days of receiving a request from a plan participant or beneficiary can result in a penalty of up to $110/day per participant or beneficiary for each violation.
Lack of an SPD could trigger a plan audit by the U.S. Department of Labor (DOL).
DOL has increased its audit staff and companies, small and large, are being audited.
The Solution
Typically businesses would have to engage an ERISA or Employment Law Attorney to have ERISA compliant Plan Documents and SPDs generated. We can provide you with a Wrap Summary Plan Description which is designed to wrap around existing certificates of insurance and benefit plan booklets to provide the required provisions and information necessary to comply with ERISA. Our document compliance solution includes the following benefits:
Customized Wrap SPD and Wrap Plan Document that provide the required ERISA provisions and information that will help you achieve compliance.
Distribution guidelines that explain how and when to provide these compliance documents to your plan participants.
Sample Employee Acknowledgement Letters, Sample E-Mail Notice to Employees, Consent for E-Delivery of ERISA document, and Request of Document Letter
Whether you choose to use your own attorney or utilize our service, we strongly recommend that any employer have a Wrap Plan Document and SPD created in order to avoid any risk of audit or penalties from the Department of Labor. To reiterate, your carrier contracts and benefit summaries are not sufficient to avoid DOL audit and penalties.
Maintain and distribute Summary Plan Descriptions (SPDs) to plan participants which accurately reflect the contents of the plan and which include specific information as required under federal law. Administer the group health plan in accordance with a written Plan Document which must be made available to plan participants and beneficiaries upon request.
Mistakenly, many companies assume that insurance Summary of Benefits and Coverages (SBCs), contracts, certificates of insurance and benefits summaries fulfill the ERISA requirements for an SPD and Plan Document–but they don’t include the required or recommended provisions that protect the plan and the employer. SBCs from the carrier and certificates of insurance are not sufficient to cover you under ERISA laws or to protect you if audited by the Department of Labor (DOL).
Penalties for Non-Compliance
Employers/plan administrators may be liable for serious penalties if they don’t provide a Summary Plan Description or have a current Plan Document:
Failure to provide an SPD or Plan Document within 30 days of receiving a request from a plan participant or beneficiary can result in a penalty of up to $110/day per participant or beneficiary for each violation.
Lack of an SPD could trigger a plan audit by the U.S. Department of Labor (DOL).
DOL has increased its audit staff and companies, small and large, are being audited.
The Solution
Typically businesses would have to engage an ERISA or Employment Law Attorney to have ERISA compliant Plan Documents and SPDs generated. We can provide you with a Wrap Summary Plan Description which is designed to wrap around existing certificates of insurance and benefit plan booklets to provide the required provisions and information necessary to comply with ERISA. Our document compliance solution includes the following benefits:
Customized Wrap SPD and Wrap Plan Document that provide the required ERISA provisions and information that will help you achieve compliance.
Distribution guidelines that explain how and when to provide these compliance documents to your plan participants.
Sample Employee Acknowledgement Letters, Sample E-Mail Notice to Employees, Consent for E-Delivery of ERISA document, and Request of Document Letter
Whether you choose to use your own attorney or utilize our service, we strongly recommend that any employer have a Wrap Plan Document and SPD created in order to avoid any risk of audit or penalties from the Department of Labor. To reiterate, your carrier contracts and benefit summaries are not sufficient to avoid DOL audit and penalties.
ERISA & ACA required Wrap SPD Document - only $79 (one-time fee)
- An employer must have a written Summary Plan Description (SPD) for each separate welfare benefit plan communicating plan rights and obligations to participants and beneficiaries
- Failure to timely provide the Wrap SPD within 30 days of request triggers a $110 per day fine per participant. Not having a Wrap SPD can also trigger an audit by the Department of Labor.
- It's a common mistake for employers to think that the summary insurance information they receive from their insurance provider meets their summary plan description requirements.
- Order our $79 Wrap SPD today and stay in compliance with your benefit plans and ERISA guidelines.
What is a Wrap SPD?
ERISA (the federal Employee Retirement Income Security Act) requires employers who are plan administrators of their group health plans to maintain and distribute summary plan descriptions (SPDs) to plan participants. The SPD describes important information about the plan in language that can be understood by the typical participant. The SPD must accurately reflect the contents of the plan and must include specific information required under federal law, much of which is typically missing from the benefits summaries and insurance certificates distributed by insurance companies.
A Wrap SPD is designed to wrap around existing certificates of insurance and benefit plan booklets to provide the information necessary to comply with ERISA’s reporting and disclosure requirements. The Wrap SPD includes required ERISA provisions and recommended information to “wrap” around the benefit summaries or booklets, insurance certificates and other relevant plan descriptions for each fully insured or self-funded plan option or component plan. To be compliant with ERISA’s reporting and disclosure requirements, the Wrap SPD and accompanying benefit plan component documents must be distributed to plan participants.
ERISA (the federal Employee Retirement Income Security Act) requires employers who are plan administrators of their group health plans to maintain and distribute summary plan descriptions (SPDs) to plan participants. The SPD describes important information about the plan in language that can be understood by the typical participant. The SPD must accurately reflect the contents of the plan and must include specific information required under federal law, much of which is typically missing from the benefits summaries and insurance certificates distributed by insurance companies.
A Wrap SPD is designed to wrap around existing certificates of insurance and benefit plan booklets to provide the information necessary to comply with ERISA’s reporting and disclosure requirements. The Wrap SPD includes required ERISA provisions and recommended information to “wrap” around the benefit summaries or booklets, insurance certificates and other relevant plan descriptions for each fully insured or self-funded plan option or component plan. To be compliant with ERISA’s reporting and disclosure requirements, the Wrap SPD and accompanying benefit plan component documents must be distributed to plan participants.
Refund Policy: Purchaser understands that goods and services provided by Cafeteria Plan Direct are non-refundable. Orders cancelled prior to shipping are subject to cancellation fees applied to the cost of goods and services provided during the review, draft, and preparation of your order.
