ERISA Wrap Document - Low Cost and Headache Free ERISA Compliance.

Did you know that under ERISA employer-sponsored welfare benefit plans, such as group health plans, must be described in a plan document? In addition, employers must explain plan terms to workers in a summary plan description (SPD). Unfortunately, most insurance carrier certificates or benefit booklets do not satisfy ERISA’s content requirements. Failing to comply can be costly for employers - $110 per day fines, benefit lawsuits, and DOL Audits. Our ERISA Wrap Document provides employers with a low cost and headache free solution to ERISA Welfare Benefit compliance.

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Employer-provided benefits, which are considered employee welfare benefit plans under ERISA include the following:

Medical, dental, and vision insurance plans


Health flexible spending accounts


Health care reimbursement accounts


Prescription drug plans


Group term or voluntary term life insurance plans


Short-term or long-term disability plans


If your organization offers any of these plans, then ERISA's documentation requirements likely apply to you.

If you offer any health or welfare benefits, like those listed above, you likely need a plan document. An employee welfare benefit plan under ERISA must have a written plan document. A written plan document contains all of the terms which govern the plan. An insurance contract generally does not contain all of the rules required by ERISA. An insurance contract is therefore not a plan document. A plan document typically specifies eligibility requirements, plan participation rules, and the length of coverage. It also contains important statements by the employer such as the employer’s right to amend or terminate the plan.

An ERISA Wrap Document supplements existing documentation. More specifically, an ERISA Wrap Document provides required ERISA information by incorporating (or “wrapping” itself around) insurance policies, third-party contracts, or other governing documents. When an ERISA Wrap Document is utilized, all governing documents remain part of the plan document. That is, the ERISA Wrap Document and other governing documents collectively comprise the complete plan document.

Insurance policies or contracts issued to employers rarely meet all ERISA Plan Document requirements. This is unsurprising. Insurance companies focus compliance efforts on state laws which regulate insurance. ERISA is a federal law. Even when insurers attempt to satisfy ERISA’s requirements, the resulting document is typically inadequate. Rarely does it contain all of the provisions to protect the plan, the plan administrator, and other plan fiduciaries. The use of a “wrap” plan document ensures ERISA compliance (through the “wrap” portion of the document) as well as an accurate insurer-provided benefit description (through the incorporation of the insurance policy or contract).

In less than 15 minutes, you can use Spectrum's ERISA Wrap Document Wizard to prepare an ERISA Wrap Document for your organization. Spectrum includes in your ERISA Wrap Document Package an adopting resolution, adoption agreement, plan document, and summary plan description. We also provide you with ERISA Welfare Document Commentary. This commentary supports organizations with the documentation and administration of their welfare benefit plan. All of this is offered for $495, which can be paid through PayPal on any major credit card.