The Employee Retirement Income Security Act of 1974 (ERISA) is a set of federal laws and regulations that govern Health & Welfare Benefit Plans and Qualified Retirement Plans. Upon an audit, failure of compliance can lead to significant penalties. In fact in FY 2009, it has been reported that of all closed civil investigations, 77.21% resulted in monetary payments for plans or other corrective action.
ERISA is a far reaching and complex piece of legislation so it is not surprising that a great percentage of employers are not in compliance with the law and, in fact, aren’t even aware of it. It’s to your advantage to be in compliance before a problem is discovered during an audit to avoid or minimize fines and penalties. The best preparation for such an audit is to be educated about your ERISA obligations and understand where you can go for help.
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