Has your business received “the letter” yet? The Department of Labor is mailing a formal letter to alert business owners across the nation—large and small—that they are under obligation to comply with the Employee Retirement Income Security Act (ERISA) pension, healthcare and employee benefits documentation requirements—audits are underway. ERISA is responsible for protecting the integrity of pensions, health and other employee benefits, and is charged with administering and enforcing the act.
A spoonful of auditors helps this medicine go way down. The Department of Labor is hiring a large number of auditors to go through corporate health and welfare plans by 2016. Many company owners don’t even realize they need to have certain documents in place and other owners have historically relied on insurance carriers to create and maintain those documents on their behalf. Many, many companies are going to suddenly find themselves out of compliance.
Any plans for the summary? Business owners of companies with 100 employees or more— not just the large corporations—will now be responsible for having a Summary Plan Description (SPD) on file. This SPD is a lengthy document with all kinds of data that identifies the benefits available to each employee of the company, which also includes COBRA options and continuation coverage rights.
GCG Compliance Prep. For those companies with 100+ employees who have not yet filed this paperwork, GCG Financial is offering a new compliance service. GCG has developed a checklist of data the Department of Labor will need in order to determine compliance. GCG can measure that checklist against a company’s current records. We see this as a case of “not IF, but WHEN” clients are audited. The results of this internal audit will be stored in each client’s “compliance vault,” to be deployed when the time comes. By planning today for an eventual occurrence, clients may save thousands of dollars in panicky calls to labor attorneys, thus reducing significant unbudgeted expenses.
GCG Compliance is an affordable and simplified turnkey solution to these inevitable and extensive future audits.