Along with many other goodies (sarcasmimplied), the Patient Protection and Affordable Care Act hasbrought ERISA compliance to the forefront, and if you're a brokeror employer, listen up. The Department of Labor has guaranteed toraise X amount of money to pay for X amount of health care reform.(If you want disclosure of said X, take it up with them. Theyhaven't released that figure.) That said, they've already hiredmore than 15,000 employees (the IRS did the same thing, so that'sat least 30,000) to perform audits. Audit who? Audit what? I'm gladyou asked. Here's a breakdown:

• Who? Regardless of size or number ofemployees, nearly all private-sector corporations, partnerships,and proprietorships, including nonprofits, must comply with ERISAif they offer health or welfare benefits. This includes (list isnot exhaustive): health, dental, vision, retirement accounts,vacation/PTO, employee assistance programs, scholarships, daycare,prepaid legal, death benefits, disability, wellness plans, HRAs,HSAs, FSAs, apprenticeships and training. Exceptions? Governmententities and churches, of course.
• What? ERISA was established to informemployees and plan participants of their rights, coverage andentitlements. You'll see language such as: 'Establish andmaintain,' 'uniform standards,' 'fair and prudent,' 'refrain fromconflict of interest,' 'ensure workers receive promised benefits,''provide documents,' 'report and disclose'…you get the idea.
• Where? Human resource offices across America.There are certain time frames by which the employees must receivethe ERISA Summary Plan Description: upon enrollment of any of thebenefits above, first day of coverage, special enrollment, uponrequest.
• Why? The feds established ERISA to protectemployees and plan participants from The Man.
• How? The ERISA Wrap product is designed tocapture all of a company's benefits in one SPD for all companybenefits. This means that no one benefit carrier provides thelanguage employers are required to have. And by the way, nocarriers (except one health insurance carrier) includes ERISArequired language anyway because it's not a Department of Insurancerequirement; rather, it's a Department of Labor requirement.

But what are the chances of receiving an ERISA documentationrequest, anyway?

• One out of three employers is receiving them now (as of June2012, the DOL intends to audit 75 percent of employers in stateswith enough manpower like California and Texas by October 2013. Andthe DOL has promised to audit all employers by 2018.) DOL firstperformed in-person requests, then via snail mail, and now byemail.
• Employers have seven days to respond with the 24 itemsrequested (their request letter can be more than 40 pages long) orface a full-blown financial and benefit audit.
• Roughly 75 percent to 90 percent are out of compliance rightnow, according to the DOL.
• Penalties range from $100-$110/day per employee with athree-year “look back” provision for ERISA language, withup  to a $500,000 maximum.
• For companies subject to Form 5500 filing, there's no statuteof limitations and the government can look all the way back. Now isa good time to mention ERISA was enacted in 1974 (Sept. 2 by GeraldFord, if you must know).
• Though the DOL says they're not targeting any particularregion, industry, or group size, it's notable that small employersare more likely to be out of compliance as a matter ofpracticality—unless they have ERISA or compliance attorneys onhand—or unless you've already shared this insight with them andthey've purchased an ERISA Wrap.
• Whoever processes the ERISA filing is liable for it. Groupswould be well-served to outsource this to an attorney or acompliance provider. If using a compliance provider, make sure theyindemnify the client.
• Though this isn't a DOI requirement, agents might want to sharethis information with their groups and prospects before they cometo you because they were audited and before another agent offers itto your client as a service.
• ERISA stands for Employee Retirement Investment SecurityAct.

Please consult with an ERISA Wrap provider, ERISA attorney, orthe Department of Labor for any changes or clarifications.