Is managing your employees and staying compliant a constant headache? You’re not alone. Many businesses struggle to keep up with the ever-changing HR landscape. That’s why we’ve partnered with Mineral to offer our Benefits clients cutting-edge HR and compliance solutions. Through this partnership, we empower our Benefits clients with the expert guidance, proactive compliance updates and easy-to-use tools they need to build a high-performing, compliant workplace. In this Q&A series, we’ll share a glimpse into the type of valuable insights our clients receive.
Question: What is a “plan document” with respect to insurance plans offered by private employers?
Answer: A plan document is the official governing document of employee benefit plans, such as health, welfare, and retirement plans. The Employee Retirement Income Security Act (ERISA) requires that almost all private employers that sponsor benefit plans have corresponding plan documents.
Your plan document should include specific information about the plan, such as eligibility, funding and contribution requirements, details about each benefit, and ERISA disclosures. You should have separate ERISA plan documents for retirement plans and the health and welfare plans because the structure, funding, and legal requirements for these plan types differ.
ERISA also requires a summarization of the plan document, called the Summary Plan Description (SPD), to be provided to employees within 90 days of becoming covered under the plan and when the plan document is changed. The SPD should be written in plain language so it’s easy for employees to understand the plan’s features and benefits.
This article originally appeared on the Mineral blog and is adapted with permission. It does not constitute legal advice and does not address state or local law.
