Why Do You Need a Wrap Document?

The Employee Retirement Income Security Act of 1974 (ERISA) requires most employers who offer health and welfare benefits to
maintain and distribute Summary Plan Descriptions (SPDs) to all plan participants. This SPD must include certain disclosures and information,
such as when the employer may amend or terminate the plan(s).

Many employers are either unaware of this requirement, or they distribute documents that do not meet the SPD requirements laid out by ERISA. Certificates of Coverage (COC), Summaries of Benefits and Coverage (SBC) or general contracts issued by insurance carriers are not the same as ERISA-compliant SPDs.

Typically, these types of documents do not include all the required SPD provisions and disclosures. Insurance companies write their certificates and booklets to be compliant with insurance laws. It is the responsibility of the plan administrator (which is almost always the employer) to comply with the SPD requirements of ERISA. So, if the information provided by the insurance company does not satisfy the ERISA requirements, then how do employers stay compliant with the law? That's where Wrap Documents come in.

Keeping you Compliant

Wrap documents from Flex help you comply with the law. Our simple approach provides a plan document that 'wraps around' all ERISA health and welfare benefits and included required disclosures not in other plan documents, such as:

When can the employer amend or terminate the plan?

What is the allocation of duties and responsibilities between the employer and an insurer of third-party administrator?

What rights are participants entitled to under ERISA?

Are benefits being elected disproportionately by top-paid employees?

Our Wrap Documents fill in the gaps and ensure the required ERISA language is provided to participants.

How you Benefit

Minimizes the risk of financial penalties and lawsuits

  • Avoid government fines and reduce your exposure to
    employee backlash

Helps keep you compliant with demanding laws

  • One less regulatory demand to worry about

Simplifies the filing process for Form 5500

  • Only one Form 5500 needed for all health and welfare plans listed in the wrap document

Contact a Benefits Consultant

Wrap Document Pricing




Stand-alone Wrap Document $400 Flex will prepare the initial Wrap Document and employers maintain and update the contents of the document on their own.
Bundled Wrap Document and Premium Only Plan (POP) $500 This option includes preparation of the Wrap Document and POP plan documents and. Non-Discrimination testing for the POP is not included.
Bundled Wrap Document and POP with Testing $600 This option includes preparation of the Wrap Document and the POP plan documents, as well as Non-Discrimination testing for the POP.
Amendment Fee $175 Flex will prepare an amendment to your Wrap Document for a per-occurrence fee of $175.

Getting Started is as Easy as 1, 2, 3!

Request a proposal

Complete an employer application

Schedule an implementation call

That's it! You're ready to go.

Let Flex show you how easy benefits can be

contact us to get started