Okay Christy and James--Wrap Plan Document

My request for information on wrap plan documents for employee benefit plans posted last week received several hits but no responses. Perhaps I'm not the only one who could use some instruction in this area. Would appreciate any assistance from Christy or James in that regard.


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  • Well, I didn't answer because I don't have the foggiest idea what wrap plan documents are, and neither does Christy. I forwarded your question to someone who might be able to help. But we don't have the staff to answer every question, and the vast majority of the answers come from other participants on the Employers Forum. A few questions don't get any answer at all. For specific questions or complicated problems, you might need to hire a lawyer.

    Good luck.

    James Sokolowski
    Senior Editor
    M. Lee Smith Publishers
  • I appreciate your passing the information along to someone else. Seems like others may not be familiar with a wrap plan document. Hope your source can help. By the way, I've been an attorney for the past 12 years. As you know, its hard to be completely knowledgeable about every topic. I have found the Forum to be a big help and check it regularly.
  • Yahoo!! Yahoo -- search sent me to "mentalhealthrecovery.com/read7.html"
    It's a guide to creating a WRAP - Wellness Recovery Action Plan. Yahoo!
  • Hi there,

    James is right - I'm not in the loop on wrap plan documents for employee benefit plans.

    Below is some info I found by searching in the Newsletter Archive in the HRhero.com Members Only Resources (available only to [link:www.hrhero.com/benefits.shtml|Law Center members]), although I don't know if it specifically address your question. We do know an attorney who specializes in benefits and we'll see if he can shed some light on the issue. If not, you might want to check with a benefits specialist. Stay tuned!

    Christy Reeder
    Website Managing Editor
    e-mail: [email]webeditor@hrhero.com[/email]

    Can insurance company's benefit brochure serve as an SPD?

    Theoretically, an insurance company's benefit brochure could serve as an SPD if the brochure contained all the required contents. Most of those brochures, however, rarely satisfy the requirements. If you use benefit brochures, consider adding a "wrap document" containing the required items that are frequently missing (e.g., employer and plan identifying information, a description of the employee groups covered by the plan, the eligibility requirements, an explanation of who pays the premiums, and the ERISA rights information). The "wrap document" would supplement the brochure (which generally includes the benefit descriptions) as a part of the SPD.

    Copyright 1999-2002 M. Lee Smith Publishers LLC. Excerpted from PACIFIC EMPLOYMENT LAW LETTER. Readers in need of legal advice should retain the services of competent counsel.
  • Okay - I will be the one to really show my ignorance. Can anyone tell me what a WRAP plan is and when it is used?
  • I'll give you the best explaination I can of something that's very complicated. It is a financial arrangement where an investment can be protected from huge fluctuations. A company purchases a wrap around that pays if an investment drops below a certain return rate. Occasionally, a company uses these for investments within a 401k or pension plan. It's rarely done because you pay a fee for the wrap around. Don't do it unless there is a very compelling reason for doing it. No one understands it, particularly employees, and it's hard to get someone to write one.

    Hope that helps.

    Margaret Morford
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