An ERISA compliance service typically includes a comprehensive suite of administrative and fiduciary support designed to ensure retirement plans meet federal standards. These services primarily focus on the following core areas:
Documentation and Disclosure: Services often include the creation and management of ERISA wrap documents, which bundle multiple benefit plans into a single master document to simplify administration. They also ensure that necessary participant disclosures, statements, and plan amendments are provided accurately and on time.
Reporting Requirements: A central component is the management of annual Form 5500 filings. This involves gathering participant data, completing required schedules (such as Schedule H or I for plans with assets over $250,000), and ensuring electronic submission via EFAST2 to avoid steep daily penalties.
Fiduciary Support and Oversight: Compliance services assist plan sponsors in fulfilling their fiduciary duties, which include acting in the best interests of participants, avoiding prohibited transactions, and performing due diligence on investment selections. This often involves regular audits, training, and fee disclosure monitoring.
Risk Mitigation and Remediation: Professional services help identify operational failures early and guide sponsors through Department of Labor (DOL) correction programs, such as the Voluntary Fiduciary Correction Program (VFCP) or the Self-Correction Program (SCP), to fix errors without severe penalties.
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