ERISA it's the law!

These requirements are mandatory and EMPLOYER requirements NOT insurance companies (Insurance Companies are providing some guidance, but state very clearly they do not give legal advice and contact your attorney). The old format for SPD's (summary plan descriptions)is no longer valid, and must be an ERISA document format, same with the HCR Notifications.

Under the new health care law retroactive to September 23rd, and October 15th 2010 and ERISA ACT of 1974, we are now required to submit the following:

!. Summary Plan Descriptions (SPD'S) are now in ERISA document form only, no more than 4 pages, no larger than 12 point type set, no higher than a fifth grade reading level, etc etc etc.

2. HCR Notifications (health care reform for grandfathered non-grandfathered plans) if you have made any changes to your plan, you are not grandfathered (eventually no one will be). And are annual notices to all employees and must comply with the new ERISA requirements.

3. Family Leave for 50+ Employees. Eligible employees have the right to take up to 12 weeks of unpaid leave annually due to certain family reasons.

4. Temporarily suspended from IRS pending further clarifications:IRS Code 105(h)(5) Discrimination Testing. Believe it or not, this is to test (2 tests) for highly compensated employees for welfare benefits (like your 401K or 403(b). The only exemptions are of course the Federal Government.
Exemptions are for church groups under ERISA only, but they are required to complete the HCR Notifications and Discrimination Testing. These generally take effect on your welfare benefit renewal date.

 The fines are very severe, $310 per day per employee, and up to $500,000 for discrimination testing. Maybe the best time to outsource, we provide all the above with a written guarantee, and defend. Starting at $1000.00. I'm sure an ERISA attorney will not get out of bed for this, or take the liability for HCR, and you will need an administrator for Family Leave and TPA for Discrimination Testing.
Keep in mind not many companies even know this is coming at them. You know have to deal with ERISA/DOL/IRS and 1600 new agent to enforce this!

I 'm Frank J. Eberhart, CEP, RFC Financial Adviser and author  Integrated Payroll/HRIS/HRMS/Employee Benefits/ Time and Attendance/BLR, Employee Benefits/Defined Contribution/Pension Plans and Services.

Eberhart Financial Services Group,.Inc
699 Washington Street, Suite 302
Hackettstown, NJ 07840
P: 908-269-8878              
F: 908-269-8879
E-mail: feberhart@investmentctr.com
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