About Us

3to99 is a full service employee benefits advisory group and brokerage. We offer health, dental Vision, Supplemental, Disability and Life Insurance plans to groups and individuals. We also offer a full complement of Compliance review and documentation services to ensure that all employers are fully compliant with ERISA and Section 125 of the Internal Revenue Code. The Employee Retirement Income Security Act (ERISA) is a federal law. It safeguards qualified retirement plans such as 401(k) plans, profit sharing and pension. It also governs welfare benefit plans including insurance plans for health, disability, group life, dental and other fringe benefit plans. The Department of Labor (DOL) is the primary enforcer of ERISA compliance. Most health and welfare employee benefit plans must comply with ERISA laws regardless of size. ERISA generally applies to all employer-sponsored group health plans, including self-insured and fully insured plans. All private companies, partnerships and proprietorships including non-profits are required to comply. Very few plans are not subject to ERISA. Governmental plans including federal, state, city, and county plans as well as church plans are not subject to ERISA. ERISA requires that all employer provide their employees with a Summary Plan Description (SPD). The Summary Plan Description (SPD) is the most important document the government requires an employer provides an employee. An SPD is not an insurance certificate. SPDs are different from Certificate Booklets or Summary of Benefits which do not include required ERISA language. SPDs are generally not provided by the insurer of fully-insured plans. If the employer offers a self-funded p lan they should make sure that the SPD is being provided the party that helps administer the plan. ERISA compliance requires that an employer have a written plan document and SPD for each and separate benefit plan offered by the employer. However, an employer may use a “wrap” document to bundle all the different plans under on ERISA document and SPD. ERISA requires employers to make participants aware of how their plans operate through an SPD. It also requires them to update participants any time material changes occur to a plan. This can be done through a Summary of Material Modification (SMM). ERISA sets forth when and how these documents should be delivered. ERISA requires employers with 100 or more employees to provide certain information to the DOL every year. This is done on Form 5500. The contents of the 5500 are required to be summarized to participants in a Summary Annual Report (SAR) and delivered to plan participants. Employers who fail to comply may find themselves facing fines of up to $1,100 per day for each late Form 5500. Late delivery of an SMM, SAR or SPD to a participant may attract fines of up to $110 per day. The penalties apply to every plan, are cumulative and are not subject to a statute of limitations. To illustrate, an employer with 100 or more participant on four different plans (i.e. dental, life, short and long term disability) who files their Form 5500 30 days late can face a fine of $132,000. Failing to comply with ERISA regulations can also lead to complaints filed by employees costing the employer time and money. It is advisable for companies to hire an expert to ensure full ERISA compliance.

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