Compliance Documents Schedule

DIRECTIONS FROM CUMMINGS FRASER: 12/11/2018

Following are Instructions relating to the documents and distribution of them: 

• 1. Review each document carefully to make sure it contains the correct contact information, benefit information, and details about your organization.  It was assumed you would be the primary contact regarding questions or needs related to these notices.  If this information is different or any other items need to be revised, please contact me right away and I will send updated documents. 

  2. Print all documents 

  3. Sign all documents requiring a signature

  4. Distribute the notices and Wrap Plan documents to your employees as follows.

NOTE:  All of the notices require that you track and confirm receipt of the documents by your employees.  You may be asked to provide proof that the notices were sent to participants in a way “reasonably calculated to ensure actual receipt”.  A breakdown of acceptable delivery methods will be included at the end of this message. 

Annual Health Insurance Exchange & CHIP Notices

i.      All employees must receive a copy within 14 days of hire and annually.  We suggest that you add a copy to your new hire packet and then annually during your open enrollment period.

       ii.      If you have not already sent it to each employee, please do so now.

Annual Employee Notifications Document

i.      All employees participating in your employee benefits programs must be given a copy of this document annually.

       ii.      We recommend distributing the notice to all eligible new hire employees at the time of hire and annually to all eligible employees during the medical open enrollment period.

       iii.      The notice may be provided as part of your new hire packet/process.  If it was not given to the employee when initially hired, the notice should be given to the employee if/when they sign up for the medical insurance program. 

Summary of Benefits and Coverage (SBC)

i.      All employees participating in your employee benefits program must be given a copy of this document annually, including upon renewal of coverage.  It also must be distributed within 7 days of any participant’s request. 

Wrap Plan – Plan Document

i.      Store this document in a secure area, keeping it on-hand in the event that the Internal Revenue Service (IRS) and/or Department of Labor (DOL) request to review this required document.  

ii.      It does not need to be distributed to employees unless they request it.

Wrap Plan - SPD effective December 1, 2018

i.      Employees participating in the plan must be provided with a copy of the SPD Wrap document within 90 days of becoming newly covered by a plan or within 120 days of a new plan being established.  

       ii.      Updated SPDs must be furnished to all covered participants every 5 years if there were changes in the plan document or every 10 years even if there were no changes. 

       iii.      COBRA participants and retirees need to receive a copy as well.

       iv.      A copy of the current SBC (Summary of Benefits & Coverage) should be given to the employee along with the SPD

       v.      The SPD Wrap Document states that premium contributions will be given out separately or may be obtained from the Plan Administrator upon request.  Please be sure you have notified your employees of the contribution levels for each health and welfare benefit plan.

Instructions relating to the Section 125 Premium Only Plan (POP) documents:

Plan Document 

i.      Store this document in a secure area keeping it on-hand in the event that the Internal Revenue Service (IRS) and/or Department of Labor (DOL) request to review this required document.  

       ii.      This does not go to participants.

Summary Plan Description (SPD)

i.      Provide copies of the 125 POP SPD to participants or include it with your Wrap Plan Summary Plan Description (SPD) document, when providing it to benefit plan participants.

       ii.      Distribute new SPDs when updated or every 5 years to plan participants.

Generate a new 125 POP document in the following instances

i.      Anytime the core plan documents change, 

       ii.      If you change your plan year, or

       iii.      If there are changes to the organization (Name, address, EIN, etc.).

Non-Discrimination Testing

i.      The IRS requires that your 125 POP plan does not discriminate in favor of “highly-compensated employees” and “key employees” as to eligibility, contributions and benefits.  

ii.      Log in to www.thinkhr.com annually to conduct discrimination testing to ensure your plan does not violate discrimination requirements.  Select the 125 POP Discrimination Testing spreadsheet and follow instructions to complete your test.  

       iii.      Conducting this test annually ensures compliance avoiding the possibility of losing tax-favorable contributions, fines or penalties. 

Assumed Participation

i.      Your 125 POP program assumes a “negative enrollment” meaning that participants are automatically enrolled in this benefit unless they otherwise sign a waiver requesting to not participate 

       ii.      If you need waiver forms, please let me know or contact ThinkHR.

Benefit Plan Pre-tax Payments

i.      If not already established, set up participating employee’s payroll to deduct employee’s share of eligible benefit plans on a pre-tax basis

Complete your Medicare Creditable Coverage Registration 

• 1. Employers are required to complete the online disclosure for the Center for Medicare Services (CMS) to report the creditable coverage status of their prescription drug plan if Medicare eligible participants are covered under the plan.  Medicare eligible participants include:  Employees, dependents, COBRA individuals and dependents, retirees and dependents age 65 and older, and younger people with disabilities.  The Disclosure should be completed annually, no later than 60-days from the beginning of a plan year (contract year, renewal year), within 30 days after termination of a prescription drug plan, or within 30 days after any change in creditable coverage status.  Visit: https://www.cms.gov/Medicare/Prescription-Drug-Coverage/CreditableCoverage/CCDisclosure.html

  2. Attached is a ‘How To’ document that will help you as you complete the registration.

Acceptable Delivery Methods for all documents/notices as defined by the government: 

• 1. Electronic: Work Email, Posted to Intranet or Personal Email - (Click for Electronic Delivery Methods) 

  2. Non-Electronic: U.S. Mail, Hand Delivery and Company Publications - (Click for Non-Electronic Document Delivery Method Details)

  3. Documentation: Regardless of the distribution method used, retain evidence of the notice being given, including a copy of the notice/s, the date provided, and to whom it was provided. 

Please contact Kim at (206) 923-7301 or kim@cummingsfraser.com if you have any questions regarding the notices.  If you do not have your login information for ThinkHR, please let me know and I will email it to you.