Federal Compliance Warning
Summary Plan Descriptions (SPDs) Must Be Distributed to Your
ERISA (the federal Employee Retirement Income Security Act) requires employers
who are plan administrators of their group health plans to comply with 2
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.
Group health plans must be administered in accordance with a
written Plan Document which must be made available to plan participants and
beneficiaries upon request.
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
Employers/plan administrators may be liable for serious penalties if they don't
provide an SPD or have a current Plan Document:
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.
of an SPD could trigger a plan audit by the U.S. Department of Labor
DOL has increased its audit staff and national enforcement initiatives to
investigate employers' compliance with Health Care Reform, resulting in
companies of all sizes being audited and being required to provide an SPD
and Plan Document.
Typically, the cost to develop an SPD and Plan Document can be very
expensive--but we have solved this problem with a sophisticated system
developed together with a major ERISA law firm that makes it easy and
economical to comply with federal requirements.
Swift Kennedy & Associates, Inc. will provide you with a Wrap SPD and Wrap
Plan Document 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. To be compliant, the Wrap SPD and
accompanying benefit plan component documents must be distributed to plan
participants. Our document compliance solution includes the following benefits:
Wrap SPD and Wrap Plan Document that provide the required ERISA provisions
and information that will help you achieve compliance.
guidelines that explain how and when to provide these compliance documents
to your plan participants.
ability to keep your documents current and updated should the federal
government issue new amendments or if plan information needs to be changed.
Cost: $150.00 for Swift Kennedy Clients/ $300 for non Swift Kennedy Clients
Contact: Maggie Kaleita, email@example.com 814-861-6564 ext. 236
Amy Dunn, firstname.lastname@example.org 570-326-0158 ext. 223