Maintaining current plan documents is an integral part of being ERISA compliant. Two documents to keep an eye on are Wrap Documents and Section  125 Premium  Only Plan (POP) documents. Although not all employers have these, those employers who do should keep them current.

 

A Wrap Document “wraps” around an employer’s insurance policies  and coverage certificates, and adds the language necessary to comply with Employee Retirement Income Security Act of 1974 (ERISA) requirements.

 

A Section 125  Plan Document, or POP Plan Document is a document that allows employers to take certain premium deductions for employees on a pre-tax basis.

 

If an employer has one,  or both of these plan documents, they should  be reviewed annually to ensure there have been no changes that would require the document to be updated.

 

 

Here is a list of changes to look for that include  the following:

 

 

Carrier

Funding Arrangement

Plan Sponsor EIN

Collective  Bargaining Agreement

Group Control  Status

Plan Year

Contributions

HIPAA Privacy/Security  Officer

Service Requirements

Definitions

Measurement Periods

State  Law

Designated Agent  for Service

MEWA or PEO Status

Tax Treatment

Election Procedures

Participating Affiliated Employer

Waiting Period

Eligibility

Plan Fiduciary

Wellness  Plan Structure

Employer  Leave Practices

Plan Sponsor Contact Information

Wrap Plan Structure

 

 

Plan additions or eliminations can also be a trigger for a plan document update. This may include  the addition or elimination of a benefit, or a spousal surcharge or exclusion.

 

 

Finally, time itself can be a reason to review and update these documents. If the document(s) have not been updated in the last five (5) years, it is time to update them.