ERISA’s reporting and disclosure obligations — notices, summary plan descriptions (SPDs), 5500 filings —can feel burdensome and confusing. The good news is that there are a number of ways to comply. What works best for your plan will depend on a host of factors particular to your operations and a baseline working knowledge of the rules will help you decide your own best practice.

Let’s look at SPDs as an example. ERISA requires virtually every employee benefit plan to have a summary plan description (SPD) and to furnish copies to certain individuals in a certain manner and within a specific time frame. While these rules can be administratively burdensome, compliance is fairly straightforward. The true nuance and challenge comes when trying to determine what type of document actually constitutes an SPD for plans that have numerous benefit options, each with their own set of documents, usually generated by the insurance carrier or third-party administrator (TPA). There’s a number of ways to structure and distribute the various plan documents to comply with ERISA, and those efforts should be coordinated with the plan’s 5500 filings. A deliberate and coordinated approach to reporting and disclosure is the best way to protect the plan in the event of an audit by the Department of Labor (DOL).

In addition to summary plan descriptions, both take you through the considerations you need to make for Summaries of Material Modification (SMM) or Reduction (SMR), Wrap documents, Cafeteria Plans, Form 5500 filings, penalties, and more. In the regulatory landscape of employee benefits compliance, it’s important to have an experienced compliance resource. Alliant is here to help.

For more information listen to our Compliant with Alliant podcast (available on Apple Podcasts, SoundCloud or Spreaker). For a more detailed documentation download our Compliance Insight.