What is an ERISA Wrap?
ERISA requires all private sector employers, regardless of size, to distribute a Summary Plan Description, (SPD) to all plan participants. The SPD must describe all of the plan rules and benefits; as well as provide key information about the plan. (For example, the plan number, employer’s Tax ID, name and address of the plan’s legal agent, etc…)
Insurance companies provide a booklet or certificate that explains the benefits. However, most booklets/certificates do not comply with the ERISA requirements applicable to SPDs. The easiest way for employers to comply with ERISA is to adopt a Wrap document.
A Wrap document is a relatively simple document that “wraps” around the insurance policy or coverage certificate/booklet. The benefits available under the plan continue to be governed by the insurance policy or coverage certificate/booklet, while the Wrap document supplements with the information necessary to comply with ERISA.
Wrap documents may also be used by employers to consolidate employee welfare benefit plans into a single plan, commonly referred to as an “umbrella” or “mega-wrap” plan. Consolidating employee welfare benefit plans into a single plan could reduce the costs associated with filing multiple annual reports, distributing multiple summary annual reports, and amending multiple plans in response to legislative or regulatory changes.
Why Use Us?
Keep your plans in compliance with ERISA Wrap Plan Service by Proficient Benefit Solutions. Our services include:
- Plan Document Preparation
- Summary Plan Description Preparation
- Plan Amendments
- Record Retention