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Employee Retirement Income Security Act (ERISA)

What is ERISA?

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

ERISA applies regardless of employer size, number of employees, or whether the benefits are paid for by the employer or its employees, through insurance or self-funding, or with pre-tax or after-tax money employers are required to comply with ERISA.

Therefore, we provide services that keep companies compliant with those laws.

What plan documents are utilized to keep companies ERISA compliant?

  • A premium only plan (POP) is the most basic type of Section 125 Cafeteria Plan that allows employer-sponsored premium payments to be paid by the employee on a pre-tax basis instead of after-tax. Coverage may include the following: Group Medical, Dental and Vision.
  • Having a wrap plan document in place assists employers by minimizing the risk of lawsuits and financial penalties, and keeps them compliant with demanding ERISA, Internal Revenue Code, and COBRA noncompliance laws.
    • Wrap documents also help save time and money. A wrap document provides the information required by ERISA by incorporating the insurance policy or similar third-party contract. When a wrap document is used, the insurance policy or contract remains part of the plan document. That is, the “wrap” document and the insurance policy or contract together comprise the complete plan document. The use of a “wrap” plan document ensures ERISA compliance (through the “wrap” portion of the document).
  • The Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA), signed into law February 4, 2009, was a milestone in the development of quality measurement and improvement in publicly financed health care for children.
    • The CHIPRA requires employers to provide the Premium Assistance under Medicaid and Children’s Health Insurance Program (CHIP) Notice to inform employees of premium assistance opportunities in the state where the employee resides to assist them in paying for their employer-sponsored group health coverage.
  • A Qualified Medical Child Support Order (QMSCO) specifically sets forth the right of the children to receive benefits under the employee parent’s group health plan. QMSCO means an order that creates or recognizes the Dependent’s right to receive benefits under this Plan.
  • The Women’s Health and Cancer Rights Act of 1998 (WHCRA) is a federal law that provides protections to patients who choose to have breast reconstruction in connection with a mastectomy.

If you have any specific questions about how our plan documents can benefit you or other questions regarding ERISA, contact us!

We would love to help you!

Email: Info@consolidatedadmin.com

If you’re an employer or agent please contact: sales@consolidatedadmin.com

Call us between 8:00am and 5:00pm Monday through Friday: +1 (877) 941-5956



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Example of ERISA Documents