There are many services a 3rd party administrator of Flexible Spending and Commuter Spending Accounts can provide for a plan. These services can include COBRA administration and direct billing. Typically, they will provide a Section 125 wrap plan for the FSA, which usually uses a Plan number of 501, as well as an SPD for … Continue reading WILL THE SECTION 125 INFORMATION INCLUDED IN OUR WRAP DOCUMENT REPLACE OUR SECTION 125 DOCUMENT, WHICH WAS PROVIDED BY OUR 3RD PARTY ADMINISTRATOR OF OUR FSA?
On 9/18/2013 the Department of Labor issued a guidance, which amended the definition of spouse under ERISA. Plans can use the “Compliance with Federal Mandates” which is shown below, and featured in our documents. For self-funded docs: Compliance with Federal Mandates The Plan is designed to comply to the extent possible with the requirement of … Continue reading WILL THE TAXABILITY LANGUAGE REGARDING DEPENDENT BENEFITS REFLECTING FROM THE DOMA RULING BE UPDATED WITHIN THE WRAP DOC?
Flexible Spending Accounts require an SPD. An SPD is still required, in order to describe the benefits, even though there would not be a Form 5500 filing requirement so long as the plan is maintained separately from the welfare benefits and does not exceed 100 participants. As with any other health care SPD, ERISA language … Continue reading IF THERE IS LESS THAN A 100 PARTICIPANTS, DOES A FLEXIBLE SPENDING ACCOUNT NEED A PLAN DOCUMENT AND SPD?
An EAP is necessary to have an SPD, if it is part of an ERISA Plan. The stipulations for an SPD are the same for an EAP, as they would be for other ERISA Benefits. If the EAP provides participants or beneficiaries with direct counseling services relating to their mental (or physical) health, such as … Continue reading WHAT ARE THE CRITERIA AN EMPLOYEE ASSISTANCE PLAN BENEFIT WOULD NEED TO MEET TO REQUIRE INCLUSION IN THE SPD?
After being introduced under PPACA, the law stipulated that starting in 2014, for all plans, “essential benefits” could not have annual or dollar limitations imposed on them (although the number of provider visits could be limited). The following are identified as non-essential: acupuncture, chiropractic care, vision exams, hearing aids, hospice care, obesity surgery, infertility treatments, … Continue reading WHAT ARE ESSENTIAL VS. NON-ESSENTIAL BENEFITS, AND WHAT IS THEIR SIGNIFICANCE?
The rules for reporting and disclosure, vesting, participation, funding, fiduciary conduct and civil enforcement are in Title I of ERISA. SPD requirements are clearly stated in 29 CFR 2520.102.2. The format and style of SPDs are discussed. The Plan document does not have any specific style or format regulations.
This answer can vary. In order to be exempt from compliance the benefit must be an employer paid short-term disability or salary continuation benefits (one of the few benefits that can be treated as a payroll practice), and through a safe harbor in ERISA. No plan or SPD is required if the short-term disability benefits … Continue reading ARE SHORT TERM DISABILITY REQUIRED TO HAVE AN SPD?
On August 23, 2010 the DOL issued regulatory guidance, which set up interim enforcement safe harbor procedures for the federal external review processes (mandated by PPACA), which affect non-grandfathered, ERISA-covered self-insured group health plans (and specific other self-insured group health plans that are not subject to a state external review process). The DOL has also … Continue reading WHAT IS THE EXTERNAL REVIEW PROCEDURE, AND WHAT IS THE IMPACT OF IT ON PLANS?
The plan can be treated as an ERISA plan so long as the programs are “sponsored” by the employer or if premiums are paid on a pre-tax basis by the employee (which caused the contributions to be employer-paid via salary reduction), since these plans would be treated as ERISA plans, they would require a Plan … Continue reading ARE VOLUNTARY INSURANCE PROGRAMS SUCH AS THOSE FOR CANCER, CRITICAL ILLNESS, ETC. CONSIDERED ERISA PLANS?
With certain benefit plans, it is necessary to file an “informational” tax return for the plan with the IRS/DOL. All welfare plans with over 100 participants are mandated to do this, regardless of funding methods. Unless otherwise extended, the Form 5500 must be filed within 210 days of the end of the Plan Year. The … Continue reading WHAT IS FORM 5500? WHAT IS THE SUMMARY ANNUAL REPORT?