The Employee Retirement Income Security Act of 1974 (ERISA) establishes minimum standards for retirement, health, and other employee benefit plans in the private sector. Employers, plan administrators, and fiduciaries must adhere to these laws and regulations to ensure compliance and avoid costly penalties. Below, we answer some of the most commonly asked questions about ERISA compliance.

What Is ERISA Compliance?

ERISA compliance refers to the legal obligations that employers and plan administrators must meet when managing employee benefit plans. Compliance ensures:

• Proper disclosure of plan information to participants.
• Fiduciary responsibilities are upheld.
• Accurate and timely reporting to the Department of Labor (DOL) and IRS.
• Protection of participants' rights and benefits.

Which Plans Are Covered Under ERISA?

ERISA applies to most private-sector employee benefit plans, including:

• Retirement plans (e.g., 401(k), pension plans, profit-sharing plans).
• Health and welfare benefit plans (e.g., medical, dental, vision, disability, and life insurance plans).
• Certain apprenticeship and other employee benefit plans.

Government and church plans are generally exempt from ERISA.

What Are the Key ERISA Compliance Requirements?

Employers and plan administrators must adhere to several requirements, including:

• Plan Documentation: Maintain a written plan document and Summary Plan Description (SPD).
• Fiduciary Duties: Act in the best interest of plan participants and avoid conflicts of interest.
• Reporting and Disclosure: File required documents (such as Form 5500) with the DOL and IRS.
• Claims and Appeals Process: Provide a fair and timely process for benefit claims and appeals.
• Participant Communication: Regularly update participants on plan changes and benefits.

Who Is Considered a Fiduciary Under ERISA?

A fiduciary is anyone who exercises discretionary control over a plan's management, assets, or administration. Common fiduciaries include:

• Employers who sponsor the plan.
• Plan administrators.
• Investment managers and advisors.
• Third-party service providers ( but only if they exercise discretionary authority over plan management, administration or assets).

Fiduciaries must act prudently and in the best interests of participants.

What Are the Penalties for ERISA Non-Compliance?

Failure to comply with ERISA regulations can result in significant penalties, including:

• Failure to file Form 5500: Daily penalties up to $2,670 (DOL) and $250 (IRS).
• Breach of fiduciary duty: Personal liability and legal action by participants.
• Failure to provide required notices: Fines and enforcement actions by the DOL or IRS.

What Are Common ERISA Compliance Mistakes?

• Missing Filing Deadlines: Late Form 5500 filings can result in steep penalties.
• Inadequate Plan Documentation: Failing to update SPDs and plan documents can lead to compliance violations.
• Lack of Fiduciary Oversight: Not regularly reviewing plan investments or service providers.
• Failure to Disclose Fees: ERISA requires transparency in plan-related fees and costs.

How Can an ERISA Attorney Help?

Schechter Benefits Law Group can assist with:

• Reviewing and updating plan documents to ensure compliance.
• Advising fiduciaries on best practices and risk mitigation.
• Assisting with government audits and investigations.
• Representing employers and plan administrators in ERISA-related disputes.

ERISA compliance is complex, but our experienced attorneys can help you navigate these regulations and avoid costly penalties. Contact Schechter Benefits Law Group today to ensure your employee benefit plans meet all legal requirements.

*Nothing stated herein is to be construed as legal or tax advice and shall not form any attorney-client relationship. Each individual situation is unique. Please contact us and speak with one of our attorneys regarding your individual situation.