Short answer: Employers sponsoring ERISA-covered health plans must maintain plan documents, provide required disclosures, follow plan terms, and act as fiduciaries in the best interests of plan participants.
Under ERISA, employers that sponsor group health or welfare benefit plans assume specific legal responsibilities related to how those plans are documented, administered, and communicated to participants.
Employers must maintain a written plan document for each ERISA-covered plan and provide participants with a Summary Plan Description (SPD). When material changes are made to the plan, employers must also distribute required updates, such as a Summary of Material Modifications (SMM), within prescribed timeframes.
ERISA also imposes fiduciary duties on those who manage or administer the plan. Employers or designated plan administrators must act prudently and solely in the interest of plan participants and beneficiaries when making decisions about plan operation, communications, and, where applicable, plan assets.
Plans must be operated consistently with their written terms. This includes applying eligibility rules uniformly, following established claims and appeals procedures, and administering benefits as described in plan documents.
ERISA requires employers to provide certain notices and disclosures at enrollment and throughout the plan year, depending on the type of plan offered. These may include COBRA notices, HIPAA-related disclosures, and other federally required communications.
Certain plans are also required to file an annual Form 5500 with the federal government. In general, this requirement applies to health and welfare plans with 100 or more participants, although exceptions and exemptions may apply.
ERISA compliance is overseen by the U.S. Department of Labor, which enforces documentation, disclosure, and fiduciary standards for covered plans.
Sources
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U.S. Department of Labor, ERISA – Health Plans
https://www.dol.gov/general/topic/health-plans -
U.S. Department of Labor, Fiduciary Responsibilities Under ERISA
https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/fiduciary-responsibilities -
Employee Retirement Income Security Act of 1974 (ERISA)
Content history
Originally published: March 27, 2025
Last reviewed: January 25, 2026