As an employer, what are my obligations relating to employee welfare benefit plan disclosures?
Under the Employee Retirement Income Security act (ERISA), all employers with Employee Welfare Benefit Plans (Health, Life, Disability & Other) are required to maintain and distribute a Summary Plan Description (SPD) to its participants. The SPD outlines the eligibility, schedule of benefits and covered/excluded items of an employee benefit plan offered by an employer. While insurers and welfare organizations may supply materials that contain much of the required information, they do not generally include all of the provisions mandated under the SPD regulations. The U.S. Department of Labor (DOL) monitors compliance. If an SPD is not current with the required provisions the employer could be subject to civil penalties in a DOL audit.
