Compliance requirements are so numerous that many HR pros worry that a required notice could slip between the cracks. When it comes to ERISA in particular, a thorough checklist can help you stay compliant.
So, what is ERISA, and what do you need to know to remain compliant with its provisions? Read on to find out.
ERISA is the Employee Retirement Income Security Act of 1974. It’s a federal law that establishes minimum standards for most retirement and healthcare plans in the private sector. Enforced by the Department of Labor, the law is designed to protect employees who enroll in these employer-sponsored benefits.
ERISA noncompliance can be costly to organizations that offer qualified plans.
Any retirement plan that provides either retirement income in the future or the opportunity for employees to contribute current wages to retirement is an ERISA plan. Major plans covered under ERISA include:
Plans that do not fall under ERISA primarily include pensions or other plans provided by the U.S. government, state or local governments, and churches.
Employers who administer ERISA-qualified plans are called “fiduciaries” and bear responsibility for compliance with the act's provisions.
While ERISA compliance is demanding, it doesn't have to be confusing. Requirements fall into two main categories: ongoing and calendar-based.
Several ERISA requirements are ongoing or met as needed. They're not bound by specific deadlines, but must be maintained at all times or become applicable when certain events occur. These fiduciary responsibilities include:
Of course, the requirements above are not necessarily scheduled, but using the checklist should help you make sure nothing is overlooked.
Many ERISA requirements, however, are regularly scheduled. Here’s a checklist broken down by each quarter of the plan year:
First Quarter:
Second Quarter:
Although some requirements are specific to your plan year, you can easily schedule them out on a compliance calendar with other important HR dates and distribute them via an HRIS such as BerniePortal. Look to the Department of Labor for a detailed list of possible penalties for noncompliance.
ERISA compliance can be a burden, especially if you’re trying to manage it alone, but it is possible. If you’re overwhelmed by ERISA and other compliance requirements, you might consider working with a third-party administrator.
An all-in-one human resources information system (HRIS) like BerniePortal can also help you manage the administrative strain. You can also stay informed, educated, and up-to-date with employer compliance using BerniePortal’s comprehensive resources: