Many employers and health care advisors do not fully understand ERISA (Employee Retirement Income Security Act) guidelines and how ERISA impacts Group Health Plans. ERISA is a set of Department of Labor guidelines that regulate employer sponsored benefit plans. Employer sponsored ‘health & welfare’ benefits offered by most employers fall under ERISA guidelines and the failure to comply with ERISA’s requirements can mean costly governmental penalties. Health & Welfare Plan sponsors are required to provide employees with specific Plan features and provisions, funding information, and reporting to the government. Plan Sponsors face strict deadlines for disclosing Plan information to eligible employees and Plan Sponsors who provide ERISA Health & Welfare Plan benefits must follow a strict fiduciary code of conduct.
Penalties are $110 per employee per day for not providing the required employee notices.
Source: ERISA Compliance Services, Inc., www.erisacs.com