By: Sharon Jeffries, Human Resources Manager

Did you know?

Recent changes to the health and welfare side of the federal Employee Retirement Income Security Act (ERISA) now mandates that all employers/plan administrators provide a Summary Plan Description (SPD) to each plan participant and that ERISA-covered plans be maintained in accordance with a written Wrap Plan Document.

The SPD is an important document that tells participants what the plan provides and how it operates. If a plan is changed, participants must be informed, either through a revised summary plan description, or in a separate document, called a summary of material modification, which also must be given to participants free of charge.

A Wrap Plan Document is designed to meet plan documentation requirements under ERISA and other federal laws and to incorporate all other welfare plans, insurance contracts and other relevant documents into a single plan. These materials can be kept together for administrative ease. The Wrap Plan Document provides additional legal protection for the employer and plan fiduciaries and can simplify plan administration.

What does that mean?

In the past, much of the regulatory focus was on the retirement side of the ERISA legislation. However, with the implementation of the Patient Protection and Affordable Care Act (PPACA) that has changed.  Much of the current government monitoring, oversight, and auditing relates to the health and welfare side of the ERISA regulation.

ERISA now requires employers who are plan administrators of their group health plans to comply with two (2) critical requirements or they will risk potential penalties and possible government audits.

Those requirements are:

• Maintain and distribute SPD’s to plan participants which accurately reflect the contents of the plan and which include specific information as required under federal law.
•  Group health plans must be administered in accordance with a written Plan Document which must be made available to plan participants and beneficiaries upon request.

Are you at risk?

Yes, and the reason is this: Many banks will mistakenly assume that insurance contracts, certificates of insurance and benefit summaries fulfill the ERISA requirements for an SPD and Plan Document, but they do not.  And, the primary reason is they do not include the required or recommended provisions that protect the plan and the employer.

What should you do?

Recognize that:

• Failure to provide an SPD or Plan Document within 30 days of receiving a request from a plan participant or beneficiary will result in a penalty of up to $110/day for each violation
• Lack of an SPD could trigger a plan audit by the United States Department of Labor (DOL)
•  The United States DOL has increased its audit staff and national enforcement initiatives to investigate employers’ compliance with Health Care Reform, resulting in companies of all sizes  being audited and being required to provide an SPD and Plan Document

The Solution

Do not try to create these in house. Allow experts in the areas of benefits and benefits regulations assist you with this monumental effort.  Young & Associates, Inc. has partnered with The Alpha Group Agency, Inc. to offer our clients this unique service.  The Alpha Group Agency, Inc. is a highly skilled, reputable organization involved in the management of health insurance services as well as other related subjects.

The Alpha Group Agency, Inc. has been an advisor to Young & Associates, Inc. for almost fifteen (15) years in the management of its group health insurance plans. For additional information on how you can become compliant with these critical ERISA regulations and also lower the risk of a DOL audit, contact Sean Nehlsen, The Alpha Group Agency at 800-886-3315 or snehlsen@thealphaga.com.

By: Sharon Jeffries, Human Resources Manager

All banks face changes in management and other key positions from time to time. These changes can be due to retirements, relocations, unsatisfactory work performance, as well as other factors. All of these situations can put your bank in difficult and unique situations that generally cannot be quickly resolved.

Don’t rush to fill the vacancy by placing a candidate/current employee in a position that may provide temporary support, but results in a poor fit for the long-term, lacking the skills and experience needed to meet the ever changing regulatory banking climate.

What should you do?
If you find yourself in this situation, Young & Associates, Inc. can help by becoming an extension of your Human Resources Department. We will work with management and discuss options for your bank to meet both its short-term and long-term staffing needs.

If we find that the skill set/experience level desired is such that it will take additional time to source the “right” candidate for the position, we will present “interim” solutions, while beginning to search for a candidate that will be a more long-term solution for your organization.

One “interim” solution may be contracting with Young & Associates to put one of our accomplished consultants on-site at your bank to assist in covering those critical areas while continuing the search for a more permanent option. Another option would be for Young & Associates to provide you with a seasoned individual who may be looking for project and/or short-term work. Through years of experience in the financial services industry, we have developed an extensive network of contacts and resumes of individuals with a broad knowledge base in critical areas that are needed in banking today.

We can customize the services we offer to meet the ever-changing workforce needs of your bank. Although some of what we offer is similar to traditional search firms, several differences set us apart from other firms. Our knowledge of the skills necessary to be successful in banking today, along with the ability to utilize our in-house experts throughout the process, are key differences. Also, our professional fee structure is generally lower than traditional placement firms. However, most importantly, our reputation is proven effective. Young & Associates is reliable with more than 35 years successfully serving banking clients.

To learn more about these unique staffing services, contact Sharon Jeffries, Young & Associates, Inc.’s Manager of Human Resources. Sharon has over 25 years of experience in Human Resources Management and can be contacted at 800.525.9775 or you can click here to send her an email.