Every participating employer has to meet certain obligations under ERISA laws. The purpose is to protect the rights of employees who enroll in employee benefits plans to make sure they are fully compensated. New Jersey employers that provide group health plans have to acknowledge all of the latest disclosure requirements that are being released.
Unveiling of new disclosure requirements
An amendment to The Consolidated Appropriations Act of 2021 requires ERISA-covered plan providers to disclose compensation for $1,000 or more that relate to providing brokerage or consulting services for group health plans. The U.S. Department of Labor (DOL) issued a temporary enforcement policy to provide further details about the disclosure rules.
A group health plan is a benefit plan provided by an employer for its employees. The DOL requires employers to follow ERISA disclosure requirements when providing group health plans. Every recipient is entitled to receive detailed information about the plan’s features and costs.
ERISA requires that employers follow minimum rules and standards to participate in their plans. Their primary fiduciary responsibility is to manage the plan for the sole interests of the participants and beneficiaries.
When ERISA laws are violated
The civil and criminal penalties for violating ERISA rules include 10 years in prison and fines that range from $100,000 to $500,000. Violators can be fined as much as $10,000 per individual.
All employer-provided group health plans are maintained according to federal laws. The Employee Retirement Income Security Act of 1974 (ERISA) provides the basic requirements for disclosing information about employee benefit plans. Following these laws is necessary for participation and failing to comply results in severe fines and prison sentences.