Understanding DOL Opinion 2015-02A on Stop-Loss Premiums

Understand the implications of DOL Advisory Opinion 2015-02A and safeguard your business by maintaining clear separation between employee contributions and employer assets.

Jun 01, 2023 2.5 minute read
office workers

Advisory Opinion 2015-02A, issued by the U.S. Department of Labor (DOL), provides important guidance and clarification regarding the payment of stop-loss premiums by employers. This opinion addresses the issue of commingling employee contributions with employer assets when it comes to fulfilling stop-loss premium obligations.

In essence, the DOL’s Advisory Opinion 2015-02A highlights that it is not permissible for employers to commingle funds when paying stop-loss premiums. Commingling occurs when an employer mixes employee contributions, typically deducted from their wages, with the general assets of the company.

The opinion stresses the importance of maintaining clear separation between employee contributions and employer assets, as doing so helps protect the interests of the employees and ensures compliance with relevant laws and regulations. This separation is crucial to maintain the integrity of the funds earmarked for employee benefits and to avoid any potential misuse or mishandling of those funds.

By emphasizing the need for separation, the DOL’s opinion aims to safeguard employee benefits and protect against potential risks and abuses. It serves as a reminder to employers that they have a fiduciary responsibility to act in the best interests of their employees and manage benefit-related funds appropriately.

Employers who fail to comply with the guidelines set forth in Advisory Opinion 2015-02A may face serious consequences. These consequences may include penalties, legal disputes, and potential liabilities for mishandling employee funds. Complying with the opinion is crucial not only to meet legal requirements but also to maintain trust with employees and ensure the financial stability of the benefit programs provided.

For a more comprehensive understanding of DOL Advisory Opinion 2015-02A and the steps you can take to ensure compliance, we encourage you to reach out to one of our advisors. They will provide you with valuable insights and practical recommendations tailored to your specific needs.

By staying informed and taking proactive measures, you can navigate the complexities of stop-loss premium compliance and safeguard the financial health of your business.

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