Are ERISA Plans Required to Comply With the New Requirements?
As a practical matter, we think the answer to this question is yes. In general, the Employee Retirement Income Security Act of 1974 (ERISA) preempts (i.e., renders unenforceable) any state law that relates to employee benefit plans that are covered by ERISA. However, state laws that regulate insurance are “saved” from ERISA preemption and, accordingly, are enforceable. The new requirements applicable to group insurance policies are directed at insurers. Therefore, one might argue they are not preempted by ERISA. In any event, a plan sponsor that contracts with a New York health issuer to provide fully insured medical and hospital benefits will be required to follow the terms of the policy, which, for ERISA plans, will form part of the ERISA plan document. While it may be possible to argue that ERISA preempts these rules, until there has been a definitive court case declaring that the new laws are preempted, we suggest employers monitor compliance with them.
Related Questions
- For ERISA 403(b) plans, new 5500 reporting requirements in 2009 require plan asset data to be reported, much like for 401(k) plans. How much data do I need to include?
- Can Safetyinstruction.com provide us with the needed written plans to comply with OSHAs Written Plan requirements?
- Does this policy satisfy the ERISA Bond requirements for my in-house pension and profit sharing plans?
