Why Does Wrap360 Use the Separate Terms “Plan Administrator” and “Claims Administrator” in the Wrap SPD?

For ERISA-covered plans, the Plan Administrator (typically the employer) is the entity designated in the Plan Document and SPD with the legal responsibility for administration of the Plan.

However, in accordance with the Wrap Plan Document, the Plan Administrator can delegate some of its responsibilities, such as the administration of a particular component benefit program or claims adjudication, to a third party (such as a TPA or insurance company). The term "Claims Administrator" is not a legal term, but is used as a practical matter in the SPD to explain to plan participants who is running the claims administration for a particular program. The ultimate legal responsibility of administering the Plan (including the selection of claims administrators) lies with the Plan Administrator.

In order to distinguish between these two very distinct functions, we use the terms "Plan Administrator" and "Claims Administrator" in the SPD. Please note, however, that the Wrap templates may be customized in Microsoft Word should you wish to use different wording, although Wrap360 recommends editing the templates only in conjunction with knowledgeable benefits counsel.