Is Your Business In Compliance?
The ERISA lays out the administrative requirements of employee benefit plans. Generally, the administrator of your benefits will step in to ensure you meet these requirements, but ultimately it is your responsibility to stay in compliance. To help you do that, here are the three primary parts of complying with the ERISA.
- Disclosure: By law, you have to share information about the benefit plan with its participants and the Department of Labor should they request it. Your plan’s participants can get information about the financial details of the plan, their coverage levels, and more.
- Reporting: You will be required to file informational returns with the IRS and Department of Labor. You will need to provide a summary plan description (SPD), which will outline your plan including its claims procedures and the levels of coverage it offers. You will also need to report when you modify your benefits plan.
- Payment: Your benefit plan will be required to set up a claims procedure that will be used each time a claim for benefits is processed. You will also need to notify a participant if their claim has been denied with information about their denial.
You do not need to become an expert on the ins and outs of the Employee Retirement Income Security Act in order to ensure your business is in compliance. Let the experts at Sackett & Associates Insurance Services come alongside your business with our deep understand of the Act to help you meet your obligations. For more information about how we can serve your Sonoma County business, contact us today.