ERISA Compliance Question: Required SPD

[AnnaW]

Employers are supposed to have a Summary Plan Description document in place in addition to having the SBC's and other federal disclosures in the benefits booklet (HIPPA, CHiP, etc).

Is there anyone on the forum with a client with under 25 employees actual that has had an ERISA audit in the last 3 years and been fined for not having an SPD in place?

If so can you detail (Audit letter, the fines, type of group, number of full time employees, etc).

Thanks

 

[ABC]

In 20 years of writing small groups, I have never had a audit for SPD.

 

[leevena]

From what I've seen, it's only required on large groups (50 subscribers or more)

Jonathan, this is not true. Any employer subject to ERISA is required to have, and provide, these plan documents. Groups such as church and govt are not subject to ERISA are not.

 

[JamesP]

That’s correct, a 2 person group is required to have an SPD.

 

[Ocho]

Bump. Anybody ever had a small group client or heard of one that has been audited and fined by DOL?

 

[leevena]

Not me

 

[Sean OHara]

Got this link off a google search.
ERISA DOL Fines Increased 72% in 2017. They Expect More in 2018.

Apparently DOL activities are rising with fines rising 72% also expected to near double their output from 1700 reviews to 3000. No mention of small business, but from where I sit, it looks like it would be easy to bump output by reviewing smaller groups below 50.

 

[jaimeb86]

It is always better to be safe than sorry, and always important to educate clients on ERISA law requirements. From my understanding, The DOL has been cracking down on the ERISA Wrap Document (or SPD) - simply, they have been asking small employers for proof of this document. Failing to comply/ can be costly for employers - $110 per day fines, benefit lawsuits, and DOL Audits.

Spectrum Consultants, a multidisciplinary B2B consulting firm that offers employee benefit, business consulting, and retirement plan services, just launched www.erisawrap.com! Spectrum's compliance solution will allow you (or your client) to quickly and easily prepare their ERISA Wrap Document. All you would need to do is fill out a simple online application that does not take more than 15 minutes, and the Wrap Document will be issued immediately, and at a low cost. Educating on compliance and offering an easy solution will bring a definite value-add to your services. In addition to compliance education, you can also receive referral fees for any employer referred. For more information, email Jaime Boccia at [email protected].