Federal requirements for employee benefits can be complex and difficult to understand. Fortunately, members of the Equipment Dealers Association can utilize an outsourcing solution to help meet the requirements of the Employee Retirement Income Security Act (ERISA) for U.S. employees.
ERISA is a federal law that protects the interests of U.S. employees who receive health and welfare group-sponsored benefits. Compliance is not an option, and failure to meet all of the regulations and requirements can be extremely costly to your business. This may include government penalties and even employee lawsuits.
Earlier this year, EDA conducted a webinar about ERISA compliance presented by industry expert, Carolyn McNairy. If you missed the webinar, or would like additional information, a slide presentation based on the webinar can be accessed by clicking here.
Included is information about ERISAEdge™, a third-party administrator of ERISA compliance, which takes care of all the necessary communications, forms, and record keeping so you don’t have to. ERISAEdge will help ensure that you are fully compliant with ERISA regulations, and if needed, provide the defense you need in the event of an audit by the U.S. Department of Labor.
EDA recently contracted with TASC, Inc., administrator of ERISAEdge, to provide the service to member dealers at a substantially reduced cost compared to the expense of hiring an attorney to meet all the requirements.
Bill Hill, president of Visor, said one of the most important requirements is to have an ERISA Summary Plan Document. This document sets out that an employer’s plan is tax qualified, what benefits are available to employees and how they can qualify. “If an employer receives a certificate of coverage from an insurance company, that is not the same as an ERISA Summary Plan Document,” Hill noted. “Employers may not even realize that an insurance certificate does not meet the requirements and that they are at risk for non-compliance.”
In addition, he said, ERISA requires that the Summary Plan Document be distributed to all employees within 90 days of the first date of eligibility, and that any time the plan is subsequently amended, a Summary of Material Modifications must be distributed to employees.
Given the complexity of ERISA requirements, Hill says it makes sense for dealers with U.S. employees to review the online presentation and consider ERISAEdge as a valuable tool to help protect their business. For additional information about this service, call 1-888-595-2261, ext. 17730, or email firstname.lastname@example.org. Be certain to mention you are a member of the Equipment Dealers Association.