Risk & Business Magazine California Fall 2017 | Page 5

WELCOME ERISA Is Complicated Don’t Get Lost In The Details A s a fellow business owner, I feel the same challenges and stress our readership experiences. I have taken special care to ensure we bring complete solutions to the forefront in California Risk & Business. I seek out and share topics from industry leaders across all aspects of running successful and thriving businesses. I have the great privilege of featuring a truly grassroots start-up, Urth Caffé. From its social responsibility stance to its deliciously prepared food and coffee offerings, Urth Caffé exemplifies a standard in culinary excellence and comforting atmosphere that is rarely seen in our fast-paced, copycat food industry. I’m lucky to live in Southern California where I can frequently enjoy their delicacies. Also in this issue, we will take a deeper dive into a topic that is foremost on the minds of CEOs everywhere, eating at the heart of corporate revenue and profits and torturing bottom lines—health insurance. As the financial noose tightens due to skyrocketing employer healthcare costs, I have seen businesses become more and more paralyzed and stuck in a business-as-usual approach, a desire for maintaining the status quo (speaking of which, check out the new book Breaking Through the Status Quo on our back cover). As business owners, we work at a feverish pitch to keep our businesses profitable, lacking the time to analyze what innovative solutions might bring our health insurance budget back under control. Well, I have sought out experts in innovative healthcare solutions that have been working for leading-edge businesses over the past several years. Their results are staggering, with up to 50 percent reductions in premiums while improving benefits and the quality of care. Be sure to dive deep into this issue’s articles on solutions related to health insurance, and give me a call for a complimentary copy of Breaking Through the Status Quo. I have ordered several copies to share with businesses ready to escape the black hole of the standard health insurance model. I hope you find the other articles in this issue not only informative and empowering but also enjoyable. I appreciate your readership and look forward to sharing in your ongoing success. Sincerely, W BY: CAROLYN MCNAIRY COMPLIANCE SERVICES VICE- PRESIDENT OF SALES, TASC hile many know the acronym ERISA and what it covers, worrying about the complexities of this federal law can drive anyone to distraction. Here’s the lowdown on what you need to know about reporting and disclosure under ERISA. We all know that ERISA (Employee Retirement Income Security Act) governs both qualified retirement plans (pension plans, profit sharing plans, and 401(k) plans) and health and welfare benefit plans (e.g., insurance plans like group life, health, dental, and disability as well as other fringe benefit plans). And that it is enforced primarily by the Department of Labor (DOL) through the Employee Benefits Security Administration (EBSA). But are you aware that almost every private sector employer and benefit plan is subject to ERISA, including benefits not provided through insurance, such as health care flexible spending accounts (FSAs) and severance pay? Or that, depending on the extent of an employer’s involvement, even voluntary insurance programs may be considered ERISA plans? It’s important to understand the nuances of this federal law so you don’t get lost in the complexity. Don’t get lost in compliance—ensure you follow the law! The DOL increased noncompliance fines and penalties in August 2016 and again in January 2017. With heavier cost implications, you must be ERISA compliant. Sure, it’s complicated, but with a little time and effort, you’ll find your way. For assistance with ERISA SPDs, 5500s, and DOL requirements, contact your local TASC Representative, Rebecca Flemming at [phone] x 4841 or [email protected]. Rudy Garcia WWW.QANDUN.COM 5