According to the DOL, the ERISA SPD (Summary Plan Description) is the single most important document an employer must provide to their employees.

Larger employers (100+ employees) are more likely to have an ERISA SPD, but all employers should really have one.  Most small employers lean too heavily on the carrier-issued SPD; however, most carrier SPDs do not contain all of the required language.

Ok, so why is this so important all of a sudden?  Haven’t these rules been around for a while?  Yes, they have been; however, the DOL and the IRS are increasing their auditing activity.  Many smaller employers (<100 employees) are being audited (and let’s face it, there are more “small” employers out there).  During the audits, the DOL is requesting proof of the HCR and ERISA notice disclosure requirements.  We also believe they will monitor if employers meet the disclosure requirement of the new “Exchange Notice”.  Here’s why.  The bottom of page one of the model notice contains this language:

“For more information about your coverage offered by your employer, please check your summary plan description (SPD) or Contact________________.”

Question: When the employer is asked for the ERISA Summary Plan Description and they have none, how do they answer the employee?

We have confirmed with the DOL that the Summary Plan Description this Notice is referring to is indeed an ERISA SPD, and the DOL also informed us that “the ERISA SPD is the single most important document an employer must provide to their employees.”

We can help with these compliance issues – please contact The Insurance Group (swin@tigadvisors.com) for assistance in becoming ERISA compliant.