It is a federal law that sets standards for retirement and health plans offered by employers. It requires employers to provide certain disclosures and protections to plan participants. Having a wrap document helps employers ensure they are in compliance with these legal requirements.

There are several reasons why an ERISA wrap plan document is important for employers: 

Plan Consolidation: Many employers offer multiple benefits plans, such as retirement plans, health insurance, and disability insurance. An ERISA wrap plan document allows employers to consolidate these plans into a single document, making it easier to administer and communicate with employees. 

Plan Integration: In addition to consolidating multiple plans, an ERISA wrap plan document allows employers to integrate different benefit programs, such as retirement and health plans. This integration helps ensure that all plans work together seamlessly and that employees receive the maximum benefits available to them.

Clear Communication: It provides a clear and concise summary of the benefits offered by the employer. It is possible to distribute this document to employees in order to make sure they are aware of the benefits they are entitled to and how to access them. A clear communication process can lead to a higher level of employee engagement and satisfaction.