Understanding who is a plan fiduciary
may be more complex than expected. The Random House dictionary
defines a fiduciary as “a person to whom property or power is
entrusted for the benefit of another.” It is important to
understand a fiduciary is determined either by being specifically
named or appointed or unintentionally by the functions one
performs.
A named fiduciary is someone specifically named in the
plan document or appointed by the plan sponsor as being responsible
for operating the...
Read More >>
This quarterly
Employee Benefit Plan Commentator includes the following
articles:
Recent EBP Developments
Change and transparency are...
Read More >>
In May 2010, the Service sent out letters and instructions to a
random sample of 1,200 employers that sponsor 401(k) plans, asking
them to complete a “401(k) Compliance Check Questionnaire.”
The Service said that the information gathered would provide a
comprehensive view of 401(k) plans, and would help the Service
maximize its resources for education, outreach, guidance, and
enforcement efforts while minimizing the burden to compliant plan
sponsors. Recipients of the questionnaires were given...
Read More >>
If your organization utilizes a 403(b) benefit plan,
you most likely know of the recent changes to the Form 5500
reporting and audit
requirements.
After reviewing these changes, many plan administrators had
expressed concern that the historical treatment of 403(b) plans as
a collection of individual contracts with respect to which
employees could engage in a series of actions without the
involvement or consent of a plan administrator or employer could
make it costly, and in some cases...
Read More >>
Details
The Internal Revenue Service has announced that its Employee Plans
Compliance Unit (“EPCU”) will be mailing out a letter and
instructions to a random sample of 1,200 employers that sponsor
401(k) plans asking them to complete a “401(k) Compliance Check
Questionnaire.”
Background
The Service is well aware that 401(k) plans have far surpassed
defined benefit plans as the preferred retirement vehicle for the
majority of employers. A recent IRS Employee Plans Examination
Study of 79 market...
Read More >>
While most companies understand that an annual financial statement
audit is required, many companies are surprised when they find out
their employee benefit plans also need to be audited. Companies may
not think they really need to pay attention to the audit
requirement, but these types of audits are important, and are
something the IRS and Department of Labor take very
seriously.
This is the time of year when companies should start looking at
whether or not their plans need an audit. From a...
Read More >>
Click the links below for more information on each topic.
Recent Employee Benefit Plan Developments
Accounting, Auditing and Reporting Update
Read More >>
Beginning with the 2009 Form 5500 filings (due in
2010), employee benefit plans that are qualified under section
403(b) of the Internal Revenue Code that are sponsored by
charitable organizations and covered under the Employee Retirement
Income Security Act of 1974 (ERISA) will be subject to the same
reporting and audit requirements that currently exist for section
401(k) plans.
What
does this mean for affected organizations? It most likely means
that they face significant challenges with:
Read More >>
With the end of the
year approaching many companies are asking questions related to
their business, such as "How can we cut costs?" How can we save
time?" and "How can we add value to our processes?" These same
questions also apply to a company’s employee benefit
plan. Many companies don’t take the time throughout the year
to evaluate their plan and any changes that should be made to
it. The end of the year is a great time to analyze the plan
for any changes that can take place during the next...
Read More >>
The
Internal Revenue Service recently issued substantial guidance
designed to boost retirement savings, including:
- Changes to automatic retirement plan
contributions;
- Contributions of unused paid time off to be
contributed to a retirement plan; and
- A
detailed explanation of tax-free rollover options.
The
guidance is found in several rulings identified below. You can
access the rulings by following
this link.
Summary
of Changes
1.
Automatic Contribution Increases under Automatic...
Read More >>
The initial due date of the Form
5500 for calendar year end benefit plans is July 31, 2010, which is
quickly approaching. Any benefit plan whose Form 5500 or
annual audit is not completed by July 31, 2010 can file for an
extension of time to file, which extends the calendar year end plan
due date to October 15, 2010. The extension process remains
the same as it has been in the past, however, there are some major
changes to the actual filing of the Form 5500.
As of January 2010, all Form...
Read More >>
This is a friendly reminder that any Form 5500 on extension needs
to filed by October 15th. This applies to calendar year
plans.
If your plan has more than 100 eligible employees, you may need to
attach audited financial statements for the plan to the Form 5500.
Looking for assistance with your benefit plan audit? Contact us at
440-449-6800 or
visit our web site for more information.
Suspension of
Required Minimum Distribution Requirement
One of the many
provisions in the Worker, Retiree, and Employer Recovery Act, which
was signed into effect in December 2008 by then President Bush,
provided for a one-year suspension of the required minimum
distribution ("RMD") payments for certain retirement plan
accounts.
Under current law, the RMD rules provide that participants in
"qualified plans" and individual retirement arrangements ("IRAs")
are generally required to begin taking...
Read More >>
This
week is our final update in our series on the changing rules and
regulations and their impact on employee benefit plan
audits.
This
week’s topic:
2009 Cost of
Living Adjustments for Qualified Retirement Plans
The Internal Revenue
Service announced cost-of-living adjustments applicable to dollar
limitations for pension plans and other items for tax year
2009.
Click here for
more of this article.
For more information
on
employee benefit plan audits, please leave a
comment below, or contact Dani...
Read More >>
In a
continuation of our benefit plan audit series, over the next few
weeks, we’ll continue updating you on changing rules and
regulations and their impact on employee benefit plan
audits.
This
week’s topic:
Guidance on
ERISA's Fidelity Bonding Requirements
Have you ever
wondered what the bonding requirements for your plan under ERISA
are or the impact of the PPA on such requirements, or if your
company's fiduciary liability insurance covers ERISA's bonding
requirements (it may not)? Well, you are...
Read More >>
In a
continuation of our benefit plan audit series, over the next few
weeks, we’ll continue updating you on changing rules and
regulations and their impact on employee benefit plan
audits.
This
week’s topic:
403(b)
Plans
In November 2007, the
DOL issued amendments to the Form 5500 - Annual Return/Report of
Employee Benef it Plan - for the 2009 plan year. One of the changes
eliminated the exemption granted to Internal Revenue Code ("IRC")
§403(b) retirement plans of IRC §501(c)(3) organizations,...
Read More >>
In a
continuation of benefit plan audit series, over the next few weeks,
we’ll continue updating you on changing rules and regulations and
their impact on employee benefit plan audits.
This
week’s topic:
Fair
Value Measurements
In
September 2006, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards No. 157, Fair
Value Measurements ("FAS 157") to provide enhanced guidance for
using fair value to measure assets and liabilities. FAS 157 is
effective...
Read More >>
With
the current difficult economic times and the changing rules and
regulations from the Department of Labor ("DOL"), Internal Revenue
Service ("IRS") and other regulators, it is essential that
companies understand the impact on their benefit plans and their
benefit plans’ audits. This is why, over the next few weeks, we’ll
be updating you on changing rules and regulations and their impact
on employee benefit plan audits.
This
week’s topic:
New
Temporary Pension Funding Relief
On
December 23,...
Read More >>
Powered by Compendium