NEW YORK, Jan. 10, 2019 /PRNewswire/ -- ERISA service provider, Clarity Benefit Solutions, discusses three ways an ERISA wrap document streamlines ERISA compliance.
Complying with the Employee Retirement Income Security Act of 1974 (ERISA) can be challenging to companies, especially those who may lack the proper manpower to give this matter the proper attention. ERISA establishes that group health and welfare benefit plans require a written plan document to be available and that a summary plan description (SPD) is apportioned to plan participants. It is not unusual for insurance companies to provide certificates of coverage which encompass benefits plans. However, most of them will not cover all ERISA requirements. Utilizing ERISA wrap documents can simplify the complex compliance process. Clarity provides an ERISA wrap document service to take the onus off companies to complete this process. Here is how an ERISA wrap document can simplify ERISA compliance.
All health/welfare benefits are enclosed in a single plan document and SPD. In a wrap document, the plan sponsor's health and welfare benefits are joined under one plan, which streamlines administration by containing all the required notices in a single place. This eliminates the need to submit multiple Form 5500s. The plan's benefits are regulated by the insurance policy, coverage certificate, or plan booklet. The wrap document complements all material that is needed to fulfill ERISA requirements, which fills any gaps that insurance carriers and third-party administrators may inadvertently leave.
The wrap document is set for the IRS. In the event of an audit, the wrap document is indemnified to ensure that it complies with ERISA mandates. And, because there is only a single document that encompasses all health and benefit plans, an employer must only file one single Form 5500. Thus, the employer is indemnified in case of an IRS audit.
The wrap document merges employee plans. Employers should distribute a wrap document to consolidate employee welfare benefits into a single plan, which may reduce the expenses that are linked to filing multiple annual reports as well as distributing multiple summary annual reports.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
SOURCE Clarity Benefit Solutions