Identifying and Correcting Costly Compliance Gaps

Company Overview

An 85-employee professional services firm located in the Midwest was a prospect that offered a competitive benefits package, including a fully insured medical plan, dental, vision, and basic voluntary benefits. Leadership believed their benefits program was compliant because coverage was in place and employees were enrolled without issue.

Key Challenges

While meeting with company leaders to gather data for our proposal, our team discovered several compliance gaps that had gone unnoticed. Required notices had not been consistently distributed, Summary Plan Descriptions were outdated, and ACA reporting data did not fully align with payroll records. While no penalties had been assessed as of that time, the risk of future audits and fines was significant. Additionally, benefits decisions had been made informally over time without clear documentation. Vendor fee reviews were inconsistent, and there was no formal process to demonstrate fiduciary oversight—an issue that could create exposure under ERISA rules if challenged.

MBA Solution Presented

After the company decided to work with us, we coordinated efforts to help their HR department conduct a comprehensive compliance audit. The review focused on documentation, ACA reporting accuracy, employee classifications, and fiduciary processes. Updated plan documents were issued, required notices were standardized and tracked, and payroll and benefits data were reconciled to prevent future reporting errors.

We also assisted leadership in implementing a simple annual benefits review process to document decision-making, vendor evaluations, and plan changes.

Measurable Results

Within 60 days, the company significantly reduced its compliance risk. More importantly, leadership gained confidence that their benefits program was not only competitive, but defensible. By addressing compliance proactively, the employer avoided potential penalties, strengthened governance, and created a more sustainable benefits strategy moving forward.