Disciplined Approach to Managing Retirement Plans
Plan fiduciaries have a duty to their employees and typically appoint a plan administrator within the company and/or organization to oversee operations. When was the last time you and your committee reviewed your procedures to ensure they were not only complying with the plan document but with ERISA guidelines?
These procedures include, but are not limited to:
• Timely processing of employee contributions
• Accurately tracking of employee eligibility and entry into the plan
• Communication of changes in benefits
• Delivery of required notices (e.g. fee disclosure, QDIA and safe harbor)
• Approach to satisfy non-discrimination and compliance testing
• Accurate processing benefit eligible events (QDRO, loan, hardship, distributions)
• Missing participant records for terminated employees
There are risks and consequences for misinterpreting or not following the provisions of the plan document. For example, when employees are eligible for entry into the plan and not given the opportunity enroll, they miss out on salary deferral, potential investment gains and possibly employer matching. In the event of an audit, the Department of Labor is likely to review your procedures thoroughly.
Our Advisors take plan compliance very seriously and make every effort to discuss these items during a retirement plan review.
If you are concerned about plan compliance and are questioning whether or not you are meeting ERISA guidelines- call our offices today, we want to help you sort it out.
