Lesser-Known ERISA Compliance Responsibilities for Employers

Many employers know the legal landscape of employee benefits can feel like wading through a swamp of rules and regulations. Today we’re talking about ERISA, or the Employee Retirement Income Security Act, some of the lesser-known areas of ERISA compliance responsibilities that often trip up even the savviest of employers.

ERISA Compliance Responsibilities

ERISA is like the rulebook that governs employee benefit plans, including things like retirement plans, health insurance, and even life insurance offered by employers. It’s designed to protect employees’ rights and ensure they receive the benefits they’re entitled to. Sounds straightforward, right? Well, not quite. We’ve previously discussed what plans are governed by ERISA, but there are also different ERISA compliance responsibilities for employers with 1-99 employees compared to employers with 100 or more employees. Knowing where your organization falls and what is required based on your size is essential.

One of the trickiest ERISA compliance responsibilities is the realm of plan documentation and reporting. Sure, you might have a Health and Welfare plan in place, but do you have all the required documents in order? From summary plan descriptions to annual reports, the paperwork can pile up quickly. And let’s not forget about fiduciary responsibilities – that’s the obligation to act in the best interests of plan participants. Many employers don’t realize that simply offering a Health and Welfare plan makes them a fiduciary, with all the legal duties and liabilities that come with it.

And let’s not overlook the ever-changing landscape of healthcare reform. With new regulations and requirements popping up intermittently, staying on top of healthcare benefits can feel like running on a never-ending treadmill.