|BASE® announced a new compliance service available to assist any employer offering benefits (ie. medical plan, dental plan, Health Savings Account (HSA), Flexible Spending Account (FSA), prescription-drug plan, etc.) to their employees. The BASE® ERISA Wrap is designed to help employers fulfill the ERISA requirements for an SPD and Plan Document.
What is ERISA?
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for health plans in private industry to provide protection for individuals in these plans. ERISA requires plans to provide participants with plan information, including important information about plan features and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans; and gives participants the right to sue for benefits and breaches of fiduciary duty. Plan information as described by ERISA is Summary Plan Descriptions and Plan Documents.
What employers are subject to ERISA?
Regardless of business size or number of participants, employers that offer any of the following benefits are subject to ERISA (The only entities exempt from ERISA are government employers and bona fide church groups.): Medical Plan, Adoption Assistance, Dental Plan, Dependent Care Reimbursement Account (DCRA) Plan, Health Care Flexible Spending Account, Health Reimbursement Account (HRA), Health Savings Account (HSA) Contributions, Life Insurance Plan, Long-Term Disability Plan, Prescription Drug Plan, Short-Term Disability Plan, Vision Plan.
Why is it important to comply with ERISA?
Think you already have the necessary documents?
Many companies mistakenly assume that insurance 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.
How can you become compliant?
BASE® will provide a Wrap SPD & Wrap Plan Document (also known as the BASE® ERISA Wrap), which are designed to wrap around existing certificates of insurance and benefit plan booklets to provide the required provisions and information necessary to comply with ERISA. The BASE® ERISA Wrap will cover all required benefits that the employer offers.
ERISA requires employers to give plan participants in writing the most important facts they need to know about their health benefit plans, including plan rules and documents on the operation and management of the plan. BASE® is proud to offer a solution to help keep employers ERISA compliant. More information can be found at www.BASEonline.com/ERISA_Wrap.html or by calling 1-888-386-9680.
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