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With over 76 years of experience, The Jordan Insurance Group is an industry leader in Life Insurance strategies and Employee Benefits. We strive for excellence through our due diligence in selecting products to satisfy our clients’ needs with proven benefit designs and tax strategies. Our Team utilizes a diversified multi-level approach in preserving, protecting and growing wealth for our business and individual clients.
Employee Retirement Income Security Act (ERISA)
The Jordan Insurance Group, MD, ERISAThe Department of Labor (DOL) has the reasonability to enforce Title I of Employee Retirement Income Security Act (ERISA). Title I establishes rules in operating employee benefit plans. The DOL has substantially increased the number of audits to employers. Here are three main concerns employers should be thinking about: COBRA Administration: Consolidated Omnibus Budget Reconciliation Act (COBRA) is the right given to employees who lose their health benefit due to a qualifying event to continue with their health benefits provided by their prior employer. Such qualifying events are job loss (voluntary or involuntary), death and divorce. Members could be required to pay the entire premium up to 102 percent of the cost of the plan. COBRA applies to groups with 20 or more employees in the prior calendar year. As an employer, it is your responsibility to make sure that your COBRA plan is properly administered. Premium-Only-Plan: Premium-Only-Plan (POP) is a cafeteria plan which allows employees to pay their health premium with tax-free dollars. POP plans are usually used in conjunction with an employer-sponsored health plan. POP gives employers benefits by reducing their tax liability. Using POP, employers do not have to pay FICA taxes on money that employers use towards their health insurance premiums. A POP document is required to be on file in order to legally allow for employee to make pre-tax contributions towards their medical premiums. ERISA Wrap Documents: ERISA is a plan documentation and disclosure requirements with respect to health benefits. ERISA was created to protect individuals enrolled in health plans. Section 402 of ERISA mandates that every employee benefit plan be created and upheld according to a written plan document. ERISA also, requires that every employee benefit plan be described in a document that provides a comprehensive summary. While larger employers have the resources to created a custom plan document, smaller companies now have a simple cost saving approach called a wrap document. A wrap document simply "wraps" all insurance policies and certificates of coverage to comply with ERISA. The Wrap document fills in the gaps left by insurance companies. It's is important that you have these discussion with your insurance representative to insure you are compliant in the coming years. For more information on this topic regarding your business contact The Jordan Insurance Group at (410) 312-0811! Some content provided by the www.dol.gov.
William Jordan
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