ERISA compliance: Clients receive 5500 Schedule A forms directly from Aetna

August 2006

ERISA, the Employee Retirement Income Security Act of 1974, is a federal Law enacted to protect the interests of workers under private pension and welfare benefits plans.

This federal law requires insurance carriers to provide Schedule A disclosure information, including information on producer compensation paid, to certain ERISA plan sponsors on an annual basis for use by those plan sponsors in completing their 5500 filings.

Annual disclosure facts for 2006:

We will send completed 5500 Schedule A disclosures directly to all fully insured ERISA customers with 51 or more employees within 120 days of the end of the policy year.
Whenever possible, we will mail the producer a copy of the Form 5500 Schedule A disclosure approximately three days prior to mailing the disclosure to the customer.
We are also implementing a process to send letters annually to non-ERISA and self-funded customers with 51 or more employees if commission or other compensation was paid during that policy or contract year in relation to their case. The letter indicates that the customer may request information on that producer compensation by contacting us or their producer. Customers requesting this information from Aetna will receive a disclosure listing all compensation paid by Aetna in relation to their case during that policy or contract year.
For purposes of these disclosures, producer compensation means all forms of payment, including commissions, overrides, bonuses, credits, fees, allowances, recognition rewards, trips or gifts from Aetna to the producer relating to the placement, renewal or servicing of the particular customer's case. In the case of bonus payments, the proportional amount of the bonus attributable to the particular case will be reflected on the disclosure.
Aetna account managers will be able to view the completed Schedule A disclosures so they can answer customer inquiries.

If you would like more information about Aetna's ERISA 5500 Schedule A disclosure process, please contact your Aetna Account Executive.

This information is provided for brokers only.

This material is for informational purposes only. It contains only a partial, general description of plan or program benefits. Plans and programs may not be available in all service areas.

"Aetna" is the brand name used for products and services provided by one or more of the Aetna group of subsidiary companies. Those companies include: Aetna Health Inc., Aetna Health of California Inc., Aetna Health of the Carolinas Inc., Aetna Health of Illinois Inc., Aetna Health Insurance Company of New York, Corporate Health Insurance Company, Aetna Dental Inc., Aetna Dental of California Inc. and Aetna Life Insurance Company. In Washington, the product referred to as HMO is called Primary Choice^SM and is offered by Aetna Health Inc., a licensed health services contractor.

Material in Broker and Consultant e.Briefing does not constitute a contract or legal advice.