{"id":2397,"date":"2024-04-03T18:21:24","date_gmt":"2024-04-03T18:21:24","guid":{"rendered":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/?p=2397"},"modified":"2024-04-03T18:22:07","modified_gmt":"2024-04-03T18:22:07","slug":"common-costly-mistakes-employee-plan-sponsors-make","status":"publish","type":"post","link":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/common-costly-mistakes-employee-plan-sponsors-make\/","title":{"rendered":"Common, Costly Mistakes Employee Plan Sponsors Make"},"content":{"rendered":"
There is a reason 91% of employee plan sponsors outsource some or all of their plan\u2019s administration to a third party administrator (TPA). The process of plan administration is complex and failure to meet their fiduciary requirements can result in hefty fines and even criminal charges. Still, some plan sponsors elect to manage their employee benefits in-house which can and often does lead to various mistakes and the risk of penalties. Here are some of the more common errors plan administrators make:<\/p>\n
These are just some of the common errors plan sponsors make in the administration of employee benefits. Some of these can result in significant costs to plan sponsors. For example, not providing a summary plan description to a plan participant within 30 days of his\/her request carries a maximum penalty of $110 per day penalty measured from 30 days after the date the request was made. In another example, failure of a plan sponsor to prepare formal plan documents in accordance with ERISA can lead to a plan participant\u2019s filing of a lawsuit in accordance with ERISA\u2019s general enforcement provisions which can lead to criminal penalties against an organization or individual that willfully violated Title 1 of ERISA. Penalties can be as high as $100,000 and a ten-year prison term or $500,000 for a company.<\/p>\n","protected":false},"excerpt":{"rendered":"
There is a reason 91% of employee plan sponsors outsource some or all of their plan\u2019s administration to a third party administrator (TPA). The process of plan administration is complex and failure to meet their fiduciary requirements can result in hefty fines and even criminal charges. Still, some plan sponsors elect to manage their employee… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts\/2397"}],"collection":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/comments?post=2397"}],"version-history":[{"count":2,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts\/2397\/revisions"}],"predecessor-version":[{"id":2401,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts\/2397\/revisions\/2401"}],"wp:attachment":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/media?parent=2397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/categories?post=2397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/tags?post=2397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}