Utilizing sample policies from reputable industry groups and ensuring a legal review of all documents can help organizations stay compliant and minimize risks. Sponsors that follow these best practices will not only be better prepared for emergencies but will also strengthen their benefits programs in the long term.
A policy library serves as a central repository for all documents governing benefits administration, compliance, and employee engagement. It includes a wide range of materials, such as health benefits policies, retirement plan guidelines, and emergency response protocols. In the event of a sudden regulatory change, a natural disaster, or an unforeseen crisis like a pandemic, having immediate access to up-to-date policies ensures that the organization can quickly adapt to protect both employees and the company.
A well-structured policy library not only provides clarity and consistency but also mitigates risks. For plan sponsors, this is crucial as benefits policies are directly tied to regulatory compliance, fiduciary responsibilities, and employee satisfaction. If a benefits team has outdated or incomplete documents, they could face legal challenges, penalties, or the dissatisfaction of employees during critical times.
One of the most efficient ways to stay ahead of potential issues is to use sample policies from industry groups. Many professional organizations, such as the Society for Human Resource Management (SHRM) or the Employee Benefit Research Institute (EBRI), provide sample documents and policy templates that reflect the latest regulatory changes and industry best practices.[1]
These templates are particularly helpful for smaller organizations that may not have the resources to develop detailed policies from scratch. By utilizing these materials, plan sponsors can save time and resources while ensuring that their policy library is aligned with industry standards. Moreover, industry groups often update their sample policies regularly in response to legal developments, providing sponsors with a continuous stream of relevant content.
For example, SHRM offers a range of sample policies on employee benefits, workplace safety, and emergency procedures. Using these resources as a baseline, sponsors can adapt them to their specific needs, ensuring that their policy library remains current and compliant.
Beyond merely obtaining sample policies, plan sponsors should focus on customizing and organizing these documents in a way that makes them easily accessible and actionable. Here are a few best practices for building a robust policy library:
1. Regular Updates: The benefits landscape is constantly changing. Plan sponsors should set up a schedule for regularly reviewing and updating their policy library to reflect new regulations or organizational changes. This might include updates based on federal regulations like the Affordable Care Act (ACA) or changes in state-level benefits laws.
2. Categorization: Policies should be categorized and labeled clearly to ensure quick access during emergencies. This includes creating distinct sections for health benefits, retirement plans, leave policies, and emergency procedures.
3. Legal Review: Before any policy is added to the library, legal counsel should review it. Legal advisors can ensure that the language is compliant with current regulations and that the policies protect both the organization and its employees. Furthermore, a legal review helps avoid potential lawsuits or fines related to improper benefit management.
4. Employee Accessibility: Policies should not only be available to benefits teams but also easily accessible to employees. Plan sponsors can consider using digital platforms that allow employees to access relevant documents online, reducing confusion and ensuring that all stakeholders are on the same page during an emergency.
5. Training: Benefits teams should undergo periodic training on how to navigate the policy library and apply its contents in real-life scenarios. This includes role-playing emergency situations to practice quick decision-making based on the policies in place.
Legal counsel plays a vital role in the development and maintenance of a policy library. While industry group templates offer a great starting point, they may not always align perfectly with an organization’s unique needs or regional regulations. Working closely with legal experts ensures that every document is compliant, clear, and tailored to the organization's objectives.
Furthermore, legal counsel can provide guidance on how policies should be enforced, what language is required to ensure compliance, and how to address gray areas that may arise during a crisis. For example, if a benefits policy related to employee furloughs is ambiguous, legal counsel can offer clarity on how to implement it in a compliant manner during an emergency.
The benefits of having a well-prepared policy library extend beyond immediate crisis management. A proactive approach—built on collaboration with legal counsel, regular updates, and resources from industry groups—ensures that plan sponsors can stay ahead of regulatory changes, reduce risks, and provide clear guidance to employees in times of need.
By investing time in curating a comprehensive and compliant policy library, plan sponsors can save their organizations from costly mistakes, improve employee engagement, and build resilience against the unexpected.
In summary, plan sponsors can greatly benefit from preparing a well-organized policy library that includes up-to-date policies, particularly in the event of an emergency. Utilizing sample policies from reputable industry groups and ensuring a legal review of all documents can help organizations stay compliant and minimize risks. Sponsors that follow these best practices will not only be better prepared for emergencies but will also strengthen their benefits programs in the long term.
For more guidance, consult resources from industry groups like SHRM or seek legal counsel to tailor policies to your organization's specific needs.
[1] https://www.shrm.org/topics-tools/tools/policies#sortCriteria=%40datesortfield%20descending&f-contenttypefiltertag=Policy
https://www.ebri.org
These articles are prepared for general purposes and are not intended to provide advice or encourage specific behavior. Before taking any action, Advisors and Plan Sponsors should consult with their compliance, finance and legal teams.
Before leaping into the unknown, we recommend a thorough examination of your plan. Because we are experts in the field, we know the marketplace and know what your existing vendor is capable of offering. Through this examination, we can help you optimize the service you receive.
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