ERISA Benefits

40. Is a cafeteria plan subject to ERISA?

Maybe. While ERISA does not specifically cover cafeteria plans, the qualified benefits made available through a cafeteria plan may be subject to ERISA. Thus, ERISA will apply to a cafeteria plan to the extent that it provides medical, surgical or hospital care benefits, or benefits in the event of sickness, accident, disability, death, etc. [ERISA Sec. 3(1)].

41. If benefits are added or deleted at the annual renewal of the plan, do I have to distribute new SPDs to my employees and to the DOL?

If the changes made to the plan are considered "material," then you are responsible for communicating those changes to participants. You may, however, use a Summary of Material Modification (SMM) conveying the changed information rather than distributing an entirely new SPD.

Payroll Concerns FAQs