Question: What does a soft taco have to do with ERISA health benefits?

Answer: It illustrates the concept of the “wrap document,” a tool to maintain compliance with ERISA rules related to plan documents and summary plan descriptions (SPDs).

ERISA health benefits come in many shapes and sizes. Health FSAs, health reimbursement arrangements, medical insurance, dental insurance and vision insurance are all examples of ERISA benefits. To continue the analogy, they are the meat, cheese, lettuce and tomatoes. The DOL has made this observation in its Form 5500 instructions: “Some plan sponsors use a ‘wrap’ document to incorporate various benefits and insurance policies into one comprehensive plan.” Thus, an ERISA wrap plan document and SPD serve as a soft tortilla in wrapping up these benefits into a common framework.

Here is what ERISA specifically requires of all ERISA plans:

· They must have a written document requirement (29 USC §1102)

· They must provide SPDs to plan participants (29 USC §1022)

Read the full article in the Infinisource Newsroom.