Before exploring the ERISA Wrap Plan Document Preparers, everyone should know about a few mandatory terms like “What is ERISA?”, “How is it associated with terms like Wrap Plan document?” “Benefits of ERISA,” “Summary Plan Description,” “Summary of Material Modification (SMM) documents,” etc. In this article, we will explore the above-mentioned terms in detail. Let’s explore them one by one.
ERISA: ERISA is termed the “Employee Retirement Income Security Act of 1974” implemented for United States employees. It creates minimum standard plans for employees working in private industry in terms of pension plans.
Plan Document: A plan document consists of all the benefits that will be given to employees, such as welfare and health benefits. It does not depend upon the company size, whether it’s small or big.
Every company is bound to manage a plan document for every employee. A plan document also consists of the overall terms and conditions of the plan prepared by the employer. It is not compulsory to write a plan document. If you don’t have a plan document in writing, then don’t worry. We can help.
Wrap Plan Document: A wrap plan document is similar to a plan document. But there is a minor difference in both of them, i.e., A wrap plan document consists of every welfare and health benefits plan and wraps them all into one single plan document.
Wrap Document Preparation: ERISA allows all employee to claim their welfare benefit. For this, they must have a written plan document. The written document usually recognizes basic information about the plan.
Summary Plan Description (SPD): A summary plan Description, usually known as SPD, is a written document containing the welfare benefit plan of an employee, which every employer must have. Major aspects covered by the SPD are: Plan name, Plan number, Plan year, the Plan administrator, Detailed summary and description of benefits, Employer tax identification number (EIN), Benefit type, Plan sponsor, List and contact information of providers, Procedures for Qualified Medical Child Support Orders, Loss of benefits statement, USERRA rights, COBRA rights, Statement of ERISA rights, Claims and appeals procedures, Disclaimer and indemnification language, Affordable Care Act disclosures, Plan contribution information etc. Also, the participant must know about the benefits, claims, eligibility requirements, his/her rights, etc. and every organization is bound to disclose all this information to the participant. For more information about SPD, contact us through call or email. You can get our contact information from the Contact Us section.
Summary of Material Modifications (SMM): Summary of Material Modifications, usually known as SMM, is particularly used by companies when a plan substantially affects the pricing and other key terms. The deadline for submitting a Summary of Material Modifications (SMM) is 120 days. Within 120 days, companies should inform the participant about the changes or modifications in their plans. If a company does not submit Summary of Material Modifications (SMM) documents within 30 days after the participant requests it, then there is a penalty of/up to 110$ per day.
Some of the most famous Summary of Material Modifications (SMM) changes:
1. Modification in Coverage
2. Decrease or Removal of benefits payable
Why choose us for ERISA Wrap Plan Document Preparers: We are one of the leading and best in this industry. We have experienced professionals to help you prepare your ERISA wrap plan document. Some of our services are:
• If you require an Assessment of your Plan Document, then you are at the right place. Just fill out your details in the contact form. Our representative will contact you within 24 hours.
• We also provide services like Complimentary review of current Plan documents. As it helps employees to know us better.
• Our experts are one of the best in creating documents particularly when it comes to Single or multiple benefit Plan Documents and Wrap Plan Documents.
• Summary Plan Descriptions (SPD) and Summary of Material Modifications (SMM) are the two key terms in the ERISA wrap document. Contact us for more information.
• We also provide services like Educational presentations, Delivery of required materials, seminars, and onsite training.