Employers must comply with the reporting and disclosure requirements of the Employee Retirement Income Security Act (ERISA), designed to protect employees’ rights to benefits.
An employer’s benefits package must take the form of a Summary Plan Description (SPD), which you must provide to participants and beneficiaries to advise them of their rights under the plan. Even though the Taxpayer Relief Act of 1997 eliminated the requirement that employers/plan administrators must file SPDs with the Labor Department, you must still prepare the SPD in the event of a DOL audit.
If you fail to provide the requested information within 30 days, you could incur a civil penalty of $100 a day (not to exceed $1,000 per request).
The SPD must contain the following information:
- Name and type of administration of the plan.
- For a group health plan, whether a health insurance issuer is responsible for the plan’s financing or administration (in...(register to read more)