What is an ERISA plan administrator?
The person or entity responsible for keeping an employee benefit plan in compliance and managing the plan for the exclusive benefit of participants and beneficiaries. The plan administrator may either be: employer (if the employee benefit plan is established or maintained by a single employer). …
Is a plan administrator a fiduciary under ERISA?
Plan administrators and sponsors are fiduciaries who are charged with the highest level of responsibility, fair dealing and good faith recognized under the law.
When does ERISA require a summary plan description?
ERISA requires that every plan be summarized in lay terms in a summary plan description (SPD). The specific requirements for the contents of an SPD are contained in regulations published by the United States Department of Labor (DOL). The SPD must be provided to each participant in the plan within 90 days after he or she becomes a participant.
What are the requirements for a SAR in ERISA?
The SAR summarizes the information provided on the Form 5500 and tells the participants how to obtain a copy of the annual return/report. The requirements for a SAR are set forth in the DOL’s regulations. ERISA requires that every plan be summarized in lay terms in a summary plan description (SPD).
When do you have to file ERISA Form 5500?
ERISA and the Code require each retirement plan to file Form 5500 by the end of the seventh month after the end of each plan year (extensions of time are available) unless the DOL and the IRS have granted an exemption to this requirement.
What kind of benefits are covered by ERISA?
Which benefits does ERISA cover? Under ERISA, a welfare plan is any plan, program, or fund that an employer maintains to provide: medical, surgical, or hospital care ; benefits for sickness, accident, disability, or death ; unemployment benefits ; vacation benefits ; apprenticeship and training programs ; day care centers ; scholarship funds
Is a plan administrator considered a fiduciary?
Plan fiduciaries include, for example, plan trustees, plan administrators, and members of a plan’s investment committee. The primary responsibility of fiduciaries is to run the plan solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits and paying plan expenses.
How does ERISA protect your retirement?
The Employee Retirement Income Security Act (ERISA) of 1974 protects the retirement assets of workers in the U.S. by implementing rules that qualified plans must follow to ensure that plan fiduciaries do not misuse plan assets.
What are fiduciary responsibilities with ERISA?
Other fiduciary responsibilities under ERISA include: Acting prudently when managing an employee plan; Diversifying a plan’s investment; Minimizing risk and losses in investments; Following the terms of a plan’s documents unless these terms are in violation of ERISA; and Avoiding conflicts of interest.
Who is subject to ERISA?
The bottom line is that most group health plans are subject to ERISA. Other employer-sponsored plans such as dental, vision, life, disability, Health FSAs and HRAs are also subject to ERISA in most instances.