ERISA

Employee Retirement Income Security Act

Many employers and health care advisors do not fully understand ERISA (Employee Retirement Income Security Act) guidelines and how ERISA impacts Group Health Plans. ERISA requires plans to provide participants with plan information including important information about plan features and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans; and gives participants the right to sue for benefits and breaches of fiduciary duty. Employer sponsored ‘health & welfare’ benefits offered by most employers fall under ERISA guidelines and the failure to comply with ERISA’s requirements can mean costly governmental penalties.

*2021 Penalty Update - Failure or refusal to file form 5500 (which must be filed annually for most ERISA plans): $2259/day