The Employee Retirement Income Security Act of 1974 (ERISA) requires employers to provide a Summary Plan Description (SPD) to employees if they offer health, dental, vision, life, disability or other benefits. To learn more about why group health plans are almost always subject to ERISA, click here. The plan documents that are provided by the insurance carrier fail to include all the required language and disclosures of the ERISA law. That means employers must supplement the carrier materials with additional document or risk costly penalties. Many employers choose to use a single document which “wraps around” all the benefits they offer so that they don’t have to prepare multiple documents, hence the name Wrap Document.
Here is a list of the 25 most common things not included in documents provided by insurance carriers but that are required to be included by the ERISA law: