ERISA Service Provider, Clarity Benefit Solutions, Provides Three Ways ERISA Wrap Documents Simplify ERISA Compliance
NEW YORK, Dec. 17, 2018 /PRNewswire/ -- ERISA service provider, Clarity Benefit Solutions, provides three ways ERISA wrap documents simplify ERISA compliance.
The Employee Retirement Income Security Act of 1974 (ERISA) mandates that every group health and welfare benefit plan arrange for a written plan document be available and that a summary plan description (SPD) is allocated to plan participants. Typically, insurance companies will provide certificates of coverage which detail benefits plans, most of them do not cover all ERISA requirements. Ensuring ERISA compliance can be a challenge, especially for smaller companies who may not have the manpower to devote proper time and attention to this matter. Fortunately, ERISA wrap documents can simplify the compliance process. Clarity can provide this service—simplifying compliance and ensuring peace of mind to clients. Here are three ways wrap documents simplify compliance matters.
Health and welfare benefits are wrapped into a single plan document and SPD. A wrap document combines both the plan sponsor's health and welfare benefits under one plan, which streamlines administration by having all the required notices in one place. Therefore, there is no need to submit multiple Form 5500s. The plan's benefits are directed by the coverage certificate, insurance policy, or plan booklet, while the wrap documents complement all material that is needed to fulfill ERISA requirements—completing the gaps that insurance carriers and third-party administrators may leave.
The wrap document is IRS-ready. The wrap document is indemnified to ensure that it meets ERISA requirements in the event of an audit. Since there is only one document for all health and benefit plans, an employer only needs to file a single Form 5500 and is therefore indemnified in case of an IRS audit.
Wrap documents consolidate employee plans. Employers often use wrap documents to combine employee welfare benefits into a single plan. Often referred to as a mega-wrap or umbrella plan, plan consolidation may lessen the expenses that are connected to distributing multiple summary annual reports, filing multiple annual reports, and amending multiple plans when legislation or regulations are altered.
About Clarity Benefit Solutions: Clarity Benefit Solutions provide 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.