Wrap Plan Services
A Wrap Plan is a single welfare benefit plan that can bundle some or all of your various health and welfare benefit plans into a single plan. It helps employers who need both a Plan Document and SPD to serve as an umbrella covering, filling in vital ERISA components to any existing plans or policies. It can also save employers time and money by consolidating annual Form 5500 filing requirements.
A Wrap Plan will typically consolidate 5500 filings, making compliance easier overall, and potentially reducing costs.
Example: No Wrap Plan
• Employer A offers medical, dental, life and AD&D benefits, all on insured
basis, to it’s employees.
• Assuming more than 100 participants in
each, the employer probably must file 4
5500s with 1 "Schedule A" attached to each filing.
Example: With a Wrap Plan
• Assume the same, except that all benefits are bundled into a single Wrap Plan. Employer files one 5500, with 4 "Schedule A’s" attached.
• Wrap Plan could save administrative filing costs of almost $1,000 per year.
Contact BPC to learn more about how a Wrap Plan can save you and your team time and money every year.