Melissa M. Wolf, CPA (570) Employee Benefit Plan Auditing and Regulatory Update 2012

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Melissa M. Wolf, CPA (570) 820.0186 Melissa.Wolf@ParenteBeard.com. Employee Benefit Plan Auditing and Regulatory Update 2012"

Transcription

1 Melissa M. Wolf, CPA (570) Employee Benefit Plan Auditing and Regulatory Update 2012

2 Agenda ASU SOC1 (Formerly SAS 70), SOC2 and SOC3 Department of Labor Regulatory Update Tax and Regulatory Update and Audit Implications of Compliance General Trends In Benefit Plans 1

3 Accounting Update A Review of Fair Value ( FV ) Measurements and Disclosures ASU (2010) Improving Disclosures About Fair Value Measurements Expanded disclosure of Level 3 Activity No new standards effective for fiscal years ended 2011 except ASU Level 3 Activity Presentation on a gross basis rather than net basis 2

4 SOC1 (Formerly SAS 70), SOC2 and SOC3 3

5 SOC1 (Formerly SAS 70) Reporting on Controls at a Service Organization and Application of the Report Implemented to prevent, detect and correct errors or omissions in the information provided to user entities SOC1 SSAE 16 (same level of evidence and assurance as in a SAS 70) Restricted use report Type I» Type I addresses the description presents fairly, in all material respects, the relevant aspects of the service organization s controls that had been placed in operation as of a specified date 4

6 SOC1 (Formerly SAS 70) New Standards and New Names SOC1 SSAE 16 (same level of evidence and assurance as in a SAS 70) (cont d) Restricted use report Type II» Type II addresses whether such controls were suitably designed to provide reasonable assurance that the specified control objectives would be achieved of those controls were complied satisfactorily, and whether the controls that were tested were operating with sufficient effectiveness to provide reasonable, not absolute assurance that the related control objectives were achieved during the period specified 5

7 SOC1 (Formerly SAS 70) New Standards and New Names SOC1 SSAE 16 (same level of evidence and assurance as in a SAS 70) (cont d) Reports on controls at a service organization relevant to a user entity s internal control over financial reporting Conceptually the same as SAS 70 Contents» Description of service organization s system» CPA s opinion on fairness of description, suitability of design, operating and effectiveness of controls 6

8 SOC2 & SOC3 New Standards and New Names SOC2 Generally a restricted use report Type I and Type II Reports on controls related to compliance and operations Security, Availability, Confidentiality, Privacy, Contents Same as SOC1 SOC3 General use report (with public seal) Reports on controls related to compliance and operations No detail provided in reporting difference between SOC2 and SOC3 (about 200 pages) 7

9 Department of Labor ( DOL ) Regulatory Update 8

10 Department of Labor Regulatory Update Beginning in 2006, the U.S. DOL has proposed several regulatory revisions designed to reveal hidden compensation and conflicts of interest among plan service providers. Proposed amendments to DOL regulation section b-2(408(b)(2)) will require disclosure of any and all conflicts of interest, as well as compensation received in connection with a provider s services to a plan. 9

11 Department of Labor Regulatory Update 408(b)(2) Regulations Effective date July 1, 2012 Full disclosure of all services to be provided under the agreement Will help fiduciaries determine a contract s reasonableness (new transparency to the process) Clarification of reasonable arrangement» In writing (no prescribed format)» Disclosure obligations must be met before or at the time the plan enters into a service arrangement (comprehensive disclosure) 10

12 Department of Labor Regulatory Update 408(b)(2) Regulations Will require disclosure of all compensation and conflicts of interest Establishes disclosure burden on service provider 11

13 Department of Labor Regulatory Update 408(b)(2) Regulations Consequence of Non-Disclosure Will warrant a prohibited transaction Contract will not be considered reasonable and therefore violates the regulation Plan Fiduciary violates Regulation 406(a)(1)(c) by participating in a prohibited transaction Service provider is a disqualified person as defined, under Internal Revenue Service prohibited transaction rules and subject to excise taxes under Codes section

14 Department of Labor Regulatory Update 408(b)(2) Regulations Service Provider Who provides any service to a plan as a fiduciary under section 3(21) of the Employee Retirement Income Security Acts of 1974 ( ERISA ) or under the Investment Advisors Act of 1940 Who provides banking, consulting, custodial, insurance, investment advisory (plan or participants), investment management, recordkeeping, securities or other investment brokerage or third party administration 13

15 Department of Labor Regulatory Update 408(b)(2) Regulations Service Provider Who receives or may receive indirect compensation or fees for the following services: Accounting Actuarial Appraisal Auditing Legal Valuation 14

16 Tax and Regulatory Update and Audit Implications of Compliance 15

17 Tax and Regulatory Update and Audit Implications of Compliance Common Areas of Non-Compliance Merger Considerations Use of Forfeitures 403(b) Plan Considerations Unrelated Business Taxable Income Schedule C Reporting Late Remittances Employee Deferral Contributions Defined Benefit Plans New Minimum Funding Rules 16

18 Tax and Regulatory Update and Audit Implications of Compliance Merger Considerations Technical exposure Risk of inconsistent or incorrect plan terms Discrimination testing possibility of disqualification by the IRS Final Form 5500 filing if there is a short plan year as a result of the Company transaction Economic exposure - potentially additional payments Filing of Form 5500 Voluntary filing with IRS for determination letter on termination Provides comfort - termination 17

19 Tax and Regulatory Update and Audit Implications of Compliance Use of Forfeitures (must comply with plan document terms) Reduce future employer contributions Pay plan expenses Allocation as an additional contribution to participants Similar to profit sharing or discretionary contribution Plan may stipulate period in which allocation must occur 18

20 Tax and Regulatory Update and Audit Implications of Compliance 403(b) Considerations DOL final regulations removed limited reporting exemption effective 1/1/2009 Subject to ERISA, same reporting requirements as qualified plans Opening balance issues Contracts issued by providers, no longer part of the plan Contracts issued to participants, no longer employed Existence of value records to assess completeness of opening assets DOL Field Assistance Bulletin (Discretion of Implementation by Sponsor) 19

21 Tax and Regulatory Update and Audit Implications of Compliance Unrelated Business Income Tax ( UBIT ) Qualified plans generally not subject to income tax Circumstances may give rise to UBIT in an otherwise tax qualified plan» Alternative investments Limited partnerships, mortgage-backed securities Examine K-1; Line 20 to identify potential UBIT 20

22 Tax and Regulatory Update and Audit Implications of Compliance Schedule C Reporting Compensation received by service providers directly from the plan in connection with services rendered to the plan or a person s position with the plan, (if $5,000 or more) Includes compensation paid by the plan sponsor, if the plan reimburses the sponsor 21

23 Tax and Regulatory Update and Audit Implications of Compliance Schedule C Reporting (cont d) Indirect compensation to include: Fees charged against and reflected in a fund s return Shareholder servicing fees Account maintenance fees 12b-1 distribution fees Float revenue Brokerage commissions Soft dollar compensation Special Rules non-monetary compensation (trips, meals, gifts and awards see page 26 of presentation) 22

24 Tax and Regulatory Update and Audit Implications of Compliance Schedule C Reporting (cont d) Indirect compensation to include: Special Rules non-monetary compensation (trips, meals, gifts and awards)» De minimis may be excluded if value is less than $50 and aggregate is less than $100 for the year (gifts of less than $10 are not required to be counted for in the $100 annual limit) 23

25 Tax and Regulatory Update and Audit Implications of Compliance Late Remittances Employee Deferral Contributions ERISA Section 2 CFR Definition of Plan Assets Participant Contributions In no event shall the date occur later than the 15 th business day of the month following the month in which the participation contribution amounts are received by the employer Not a safe harbor 24

26 Tax and Regulatory Update and Audit Implications of Compliance Late Remittances Employee Deferral Contributions (cont d) DOL view If employer can deposit within 1 business day, that will be the standard used by the DOL If employer can deposit within 5 business days, that will be used as the standard (evaluation of Plan Sponsor s process and consistency throughout the year) Safe Harbor Small plans (less than 100 participants) 7 business days 25

27 Tax and Regulatory Update and Audit Implications of Compliance Late Remittances Employee Deferral Contributions (cont d) DOL view (cont d) No Safe Harbor Large plan (over 100 participants)» Large companies tend to have more sophisticated payroll systems» Should have back-up employees in plan for payroll processes 26

28 Tax and Regulatory Update and Audit Implications of Compliance Late Deposit of 401(k) Deferrals and Participant Loan Repayments Prevention and Correction Sponsor should set a policy and follow it (auditor responsibility compliance to policy) If sponsor is out of compliance to internal policy constitutes a prohibited transaction: Subject to 15% excise tax under IRC Section 4975 report and pay via Form 5330 Or use DOL s Voluntary Fiduciary Correction Program ( VFCP ) 27

29 Tax and Regulatory Update and Audit Implications of Compliance Late Deposit of 401(k) Deferrals and Participant Loan Repayments Prevention and Correction (cont d) If sponsor is out of compliance to internal policy constitutes a prohibited transaction (cont d): Lost earnings (interest) must be funded to the plan and allocated to participant accounts for the time period between the administrative feasible date; the date actually remitted 28

30 Tax and Regulatory Update and Audit Implications of Compliance Defined Benefit Plans New Minimum Funding Rules Impose a single, modified unit credit method of funding in place of methods previously used Eliminate the Funding Standard Account Require funding to a target of 100% of liabilities with shortfalls made up over 7 years Change assumptions, including interest rate and mortality for funding purposes Require an assumption based on the form of benefit payment 29

31 Tax and Regulatory Update and Audit Implications of Compliance Defined Benefit Plans New Minimum Funding Rules (cont d) Change rules for valuing plan assets Provide special funding rules for at risk plans Provide a different set of rules for Multi-employer plans 30

32 General Trends In Benefit Plans 31

33 General Trends In Benefit Plans More sophistication in Defined Contribution Plan design Life cycle / Target date funds becoming a popular investment (set it and forget it) Adding asset classes Diversification Protection again inflation Focus on plan expenses 32

34 General Trends In Benefit Plans Increase in cash balance and money purchase plans Defined benefit plans Maintenance mode Wind-down mode (frozen) 33

35 Questions? 34

Plan Administrator Guide

Plan Administrator Guide Plan Administrator Guide Your qualified retirement plan combines current employer tax savings with retirement security for participants. Congress specifically provided for this favorable treatment in the

More information

New Regulations Under ERISA Refine and Develop Fiduciary Duties Regarding the Investment of Plan Assets

New Regulations Under ERISA Refine and Develop Fiduciary Duties Regarding the Investment of Plan Assets New Regulations Under ERISA Refine and Develop Fiduciary Duties Regarding the Investment of Plan Assets Maine Employee Benefits Council December 4, 2008 Eric D. Altholz Verrill Dana, LLP Background There

More information

SAMPLE REGISTERED INVESTMENT ADVISER COMPENSATION DISCLOSURE

SAMPLE REGISTERED INVESTMENT ADVISER COMPENSATION DISCLOSURE SAMPLE REGISTERED INVESTMENT ADVISER COMPENSATION DISCLOSURE (For Use by Registered Investment Advisers in Providing Disclosures of Compensation To Retirement Plan Clients Whose Plans are Funded by Group

More information

Internal Controls Best Practices By Jennifer Downs, CPA Benefit Audit Group, LLC

Internal Controls Best Practices By Jennifer Downs, CPA Benefit Audit Group, LLC Internal Controls Best Practices By Jennifer Downs, CPA Benefit Audit Group, LLC Internal control consists of: Entity level controls these controls relate to the overall control environment and can potentially

More information

Exercising Fiduciary Authority and Control Over the Investment Menu in 403(b) Plans Subject to ERISA

Exercising Fiduciary Authority and Control Over the Investment Menu in 403(b) Plans Subject to ERISA Reproduced with permission from Tax Management Compensation Planning Journal, 38 CPJ 299, 11/05/2010. Copyright 2010 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com Exercising

More information

Understanding the Report of Indirect Compensation

Understanding the Report of Indirect Compensation Understanding the Report of Indirect Compensation Frequently Asked Questions On an annual basis, T. Rowe Price Retirement Plan Services, Inc. (RPS), distributes the Report of Indirect Compensation to assist

More information

Service Provider Disclosure

Service Provider Disclosure Service Provider 408(b)(2) Service Provider Disclosure What Plan Sponsors Need to Know By John Carnevale, JD, President & CEO, Sentinel Benefits & Financial Group Joshua Meltzer, CFP, ChFC, QPFC, CPC,

More information

SAMPLE INSURANCE BROKER COMPENSATION DISCLOSURE

SAMPLE INSURANCE BROKER COMPENSATION DISCLOSURE SAMPLE INSURANCE BROKER COMPENSATION DISCLOSURE (For Use by Insurance Brokers in Providing Disclosures To Retirement Plan Clients of Indirect Compensation Expected To Be Received From John Hancock Life

More information

Understanding Plan Fees and Expenses

Understanding Plan Fees and Expenses Understanding Plan Fees and Expenses Susan M. Wright, CPA, APM Executive Director, Consulting Topics of Discussion Fiduciary Responsibilities Settlor vs. Non-settlor Expenses Revenue Holding Accounts Questions

More information

Service Provider Fee Disclosure Rules Now Final: Next Steps for Retirement Plan Fiduciaries. March 2012

Service Provider Fee Disclosure Rules Now Final: Next Steps for Retirement Plan Fiduciaries. March 2012 Service Provider Fee Disclosure Rules Now Final: Next Steps for Retirement Plan Fiduciaries March 2012 Table of Contents Service Provider Fee Disclosure Final Rules 2 Background 2 Significant Clarifications

More information

The Department of Labor ( DOL ) recently issued proposed regulations

The Department of Labor ( DOL ) recently issued proposed regulations Proposed Labor Regulations Would Require Greater Disclosures of Fees, Compensation, and Conflicts of Interest for Employee Benefit Plan Services Providers PETER M. VARNEY AND PATRICK C. DICARLO The authors

More information

AVOID MISTAKES WITH TIMELY DEPOSITS

AVOID MISTAKES WITH TIMELY DEPOSITS EMPLOYEE BENEFITS INSIDER Spring 12 AVOID MISTAKES WITH TIMELY DEPOSITS In any qualified retirement plan, money comes in and money goes out. An area that garners Department of Labor (DOL) attention is

More information

What is an ESOP? ESOPs are defined contribution pension plans that invest primarily in the stock of the plan sponsor

What is an ESOP? ESOPs are defined contribution pension plans that invest primarily in the stock of the plan sponsor Employee Stock Ownership Plans May 2013 http://aicpa.org/ebpaqc ebpaqc@aicpa.org Topix Primer Series The AICPA Employee Benefit Plan Audit Quality Center (EBPAQC) has developed this primer to provide Center

More information

Legal Obligations of Employers for 401(k) Plans

Legal Obligations of Employers for 401(k) Plans Legal Obligations of Employers for 401(k) Plans 1. Background A. After extensive investigation of 401(k) retirement plans throughout the country, the Department of Labor (DOL) has determined the following:

More information

Paying Employee Benefit Plan Expenses

Paying Employee Benefit Plan Expenses Jennifer E. Eller and Andrée M. St. Martin, Groom Law Group, Chartered This Note describes the types of expenses that may and may not be paid from the assets of an employee benefit plan. It also explains

More information

ERISA Compliance for Investment Advisers: A Q&A Guide To DOL s 408(b)(2) Disclosure Regulation

ERISA Compliance for Investment Advisers: A Q&A Guide To DOL s 408(b)(2) Disclosure Regulation Vol. 20, No. 7 July 2013 ERISA Compliance for Investment Advisers: A Q&A Guide To DOL s 408(b)(2) Disclosure Regulation By Michael L. Hadley and Joshua R. Landsman O n February 2, 2012, the Department

More information

Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions

Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions PLAN ADVISORY Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions PLAN ADVISORY Table of Contents Introduction 3 Selecting and Monitoring Third-Party Service Providers 4 Quality

More information

HFTP Annual Convention & Tradeshow Rosen Shingle Creek Orlando, FL October 20, 2012 WHO ME?? A FIDUCIARY?!?!?!? Ned McCrory, CPA George Zoglio, CPA, MBA Batchelor, Frechette, McCrory, Michael & Co. CPA

More information

REQUEST FOR QUOTE (RFQ)

REQUEST FOR QUOTE (RFQ) REQUEST FOR QUOTE (RFQ) Texas Guaranteed Student Loan Corporation (referred to herein as TG ) is a private, nonprofit corporation that promotes public access to higher education and student success in

More information

Meeting Your Fiduciary Responsibilities

Meeting Your Fiduciary Responsibilities Meeting Your Fiduciary Responsibilities To view this and other EBSA publications, visit the agency s Web site at: www.dol.gov/ebsa. To order publications, contact us electronically at: www.askebsa.dol.gov.

More information

SAMPLE INSURANCE BROKER SERVICE AGREEMENT

SAMPLE INSURANCE BROKER SERVICE AGREEMENT SAMPLE INSURANCE BROKER SERVICE AGREEMENT (For Use By Insurance Brokers in Preparing Service Agreements for Clients Whose 401(k) Plans Are Funded by John Hancock Group Annuity Contracts or, With Respect

More information

RETIREMENT PLANS: COMPLIANCE WITH THE NEW 403(b) REGULATIONS

RETIREMENT PLANS: COMPLIANCE WITH THE NEW 403(b) REGULATIONS TOPIC: RETIREMENT PLANS: COMPLIANCE WITH THE NEW 403(b) REGULATIONS INTRODUCTION: Unlike other types of qualified retirement plans, 403(b) plans have been only loosely regulated since they first came into

More information

RETIREMENT PLAN FIDUCIARY GUIDE

RETIREMENT PLAN FIDUCIARY GUIDE RETIREMENT PLAN FIDUCIARY GUIDE CONGRATULATIONS You re sponsoring a valuable retirement plan for your employees, and BB&T is delighted to assist you in that effort. Employees will appreciate this important

More information

IRS and Department Of Labor Issue Automatic Enrollment and Investment Guidance

IRS and Department Of Labor Issue Automatic Enrollment and Investment Guidance IRS and Department Of Labor Issue Automatic Enrollment and Investment Guidance By Cynthia Marcotte Stamer Recent guidance from the U.S. Department of Labor ( Labor Department ) and Internal Revenue Service

More information

Would Your Plan Survive a DOL or IRS Audit?

Would Your Plan Survive a DOL or IRS Audit? Would Your Plan Survive a DOL or IRS Audit? CBIA 2016 Compensation & Benefits Conference Presented By: Sharon Freilich, George Kasper & Nancy Lapera June 22, 2016 IRS and DOL Responsibilities Internal

More information

NAIFA Fact Sheet: DOL Expands Fiduciary Definition

NAIFA Fact Sheet: DOL Expands Fiduciary Definition NAIFA Fact Sheet: DOL Expands Fiduciary Definition The Department of Labor (DOL) has released its long anticipated Proposed Regulation to Address Conflicts of Interest, and is accepting public comments

More information

Meeting Your Fiduciary Responsibilities

Meeting Your Fiduciary Responsibilities The following information comes directly from a brochure prepared by The Department of Labor to help plan sponsors understand their fiduciary responsibilities. We are making this brochure available through

More information

- CFO S RESPONSIBILITIES. Gary Broder, Bob Hamilton & Hosanna Custodio

- CFO S RESPONSIBILITIES. Gary Broder, Bob Hamilton & Hosanna Custodio EMPLOYEE BENEFIT PLAN AUDITS - CFO S RESPONSIBILITIES Gary Broder, Bob Hamilton & Hosanna Custodio What Every CFO Should Expect in the Annual Audit of Their Employee Benefit Plan 2 Generally, audit requirement

More information

Using ERISA Accounts to Help Manage Fee-Related Fiduciary Responsibilities

Using ERISA Accounts to Help Manage Fee-Related Fiduciary Responsibilities Defined Contribution Plans Fiduciary Focus Series Using ERISA Accounts to Help Manage Fee-Related Fiduciary Responsibilities Contents 1 Employer Fee Responsibilities 2 Revenue Sharing 3 DOL s View of ERISA

More information

The Benefits of Mandatory Distributions

The Benefits of Mandatory Distributions The Benefits of Mandatory Distributions A WHITE PAPER BY FRED REISH AND BRUCE ASHTON C. Frederick Reish (310) 203-4047 Fred.Reish@dbr.com www.drinkerbiddle.com/freish Bruce L. Ashton (310) 203-4048 Bruce.Ashton@dbr.com

More information

401(k) Plan Administration: Fiduciary Responsibility and The Impact of Changes to Your Plan

401(k) Plan Administration: Fiduciary Responsibility and The Impact of Changes to Your Plan 401(k) Plan Administration: Fiduciary Responsibility and The Impact of Changes to Your Plan Presented by: Kirsten L. Vignec Shareholder Hill Ward Henderson Introduction Our discussion today focuses on

More information

ERISA 408(b)(2) Retirement Plan Service Provider Disclosure Information

ERISA 408(b)(2) Retirement Plan Service Provider Disclosure Information ERISA 408(b)(2) Retirement Plan Service Provider Disclosure Information This information is being provided to you as the Plan Sponsor or other responsible fiduciary of a retirement plan ("Plan") subject

More information

CONSIDERATIONS IN ESTABLISHING A LEVERAGED ESOP

CONSIDERATIONS IN ESTABLISHING A LEVERAGED ESOP AUTHOR John A. Wilhelm, Partner Venable, LLP 8010 Towers Crescent Drive Suite 300 Vienna, VA 22182 PH: 703.760.1917 FAX: 703.821.8949 JAWilhelm@Venable.com CONSIDERATIONS IN ESTABLISHING A LEVERAGED ESOP

More information

REPRESENTATIVE TOPIC TYPES OF RETIREMENT SAVINGS ARRANGEMENTS RETIREMENT PLAN REGULATORY & INDUSTRY UPDATES. Audience

REPRESENTATIVE TOPIC TYPES OF RETIREMENT SAVINGS ARRANGEMENTS RETIREMENT PLAN REGULATORY & INDUSTRY UPDATES. Audience The following list of topics represents the range and depth of subject matter that may be addressed in Integrated Retirement training and content. Training and content can be delivered in a variety of

More information

May an employer make additional contributions to a safe harbor 401(k) plan?

May an employer make additional contributions to a safe harbor 401(k) plan? 401(k) Plan Design Q 2:236 Q 2:233 In determining whether an HCE receives a rate of match that is not greater than the rate of match of any NHCE, are NHCEs, who terminate during the plan year and who,

More information

Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions

Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions Plan Advisory The AICPA EBPAQC is a firm-based, volunteer membership center created with the goal of promoting quality employee

More information

Qualified Retirement Plan

Qualified Retirement Plan Qualified Retirement Plan Standardized Adoption Agreement PO Box 2760 Omaha, NE 68103-2760 Super Simplified Individual 401(k) Profit Sharing Plan Key Information When Establishing a Qualified Retirement

More information

Schedule C (Form 5500) service provider information: Fee disclosure Q&A

Schedule C (Form 5500) service provider information: Fee disclosure Q&A Schedule C (Form 5500) service provider information: Fee disclosure Q&A The Department of Labor (DOL) has issued final regulations requiring enhanced reporting on the Form 5500 Annual Return/Report of

More information

Understanding Your Fiduciary Role

Understanding Your Fiduciary Role Understanding Your Fiduciary Role Legal Aspects of Fiduciary Duties Under ERISA for Tax-Exempt Plan Sponsors Mark A. Daniele, Esq. McCarter & English, LLP January 26, 2012 I. ERISA ERISA imposes various

More information

Understanding fiduciary responsibilities

Understanding fiduciary responsibilities INSIGHTS SERIES Perspectives and viewpoints on investing in today s market Understanding fiduciary responsibilities A guide for retirement plan sponsors Offering a retirement savings opportunity in the

More information

Employee Benefit Plans Financial Statement Audits

Employee Benefit Plans Financial Statement Audits Employee Benefit Plans Financial Statement Audits Plan Advisory The AICPA EBPAQC is a firm-based, volunteer membership center created with the goal of promoting quality employee benefit plan audits. Center

More information

Cash or Deferred 401(k) Plan

Cash or Deferred 401(k) Plan The Basics Any profit sharing or stock bonus plan that meets certain participation requirements of IRC Sec. 40(k) can be a cash or deferred plan. An employee can agree to a salary reduction or to defer

More information

2016 ANNUAL PLAN COMPLIANCE REVIEW

2016 ANNUAL PLAN COMPLIANCE REVIEW 2016 ANNUAL PLAN COMPLIANCE REVIEW EMPLOYEE FIDUCIARY, LLC 250 STATE STREET MOBILE, AL, 36603 (877) 401-5100 (251) 436-0800 Offering a 401(k) plan can be one of the most challenging, yet rewarding, decisions

More information

FIXING THE MEP. Using an Aggregation Program to Manage the ASO Risk in the PEO Multiple Employer Plan

FIXING THE MEP. Using an Aggregation Program to Manage the ASO Risk in the PEO Multiple Employer Plan A TAG Whitepaper FIXING THE MEP Robert J. Toth, Jr. Law Office of Robert J. Toth, Jr., LLC Using an Aggregation Program to Manage the ASO Risk in the PEO Multiple Employer Plan esources, LLC 0 Page Contents

More information

Annual Plan Review - Year End Package

Annual Plan Review - Year End Package PLEASE NOTE NEW ADDRESS: 300 HARLEYSVILLE PIKE SOUDERTON, PA 18964 215.703.0844 FAX: 215.723.1265 WEB: www.tpagroup.com Annual Plan Review - Year End Package Plan Year End Information Request - Month/Day/2012

More information

When the IRS and DOL come knocking... (You can t pretend you re not home.)

When the IRS and DOL come knocking... (You can t pretend you re not home.) When the IRS and DOL come knocking... (You can t pretend you re not home.) What to Expect and How We Can Help Lisa Jones, Esq., CPC, QPA W hat We Will C over Why you? Overview of DOL/EBSA Initiatives A

More information

Overview (continued)

Overview (continued) Overview Alternative Exit Strategies Criteria for Evaluating Alternatives Introduction to ESOPs Profile of an Ideal ESOP Candidate ESOP Corporate Governance How Does an ESOP Work? 1 Overview (continued)

More information

Alerus Retirement Solutions Plan Administration Guide

Alerus Retirement Solutions Plan Administration Guide Alerus Retirement Solutions Plan Administration Guide Introduction This guide provides a summary of procedures, documents, compliance testing, and government reporting related to qualified plans that will

More information

GOLD CROSS SERVICES, INC. 401(K) RETIREMENT SAVINGS PLAN SUMMARY PLAN DESCRIPTION

GOLD CROSS SERVICES, INC. 401(K) RETIREMENT SAVINGS PLAN SUMMARY PLAN DESCRIPTION GOLD CROSS SERVICES, INC. 401(K) RETIREMENT SAVINGS PLAN SUMMARY PLAN DESCRIPTION TABLE OF CONTENTS INTRODUCTION TO YOUR PLAN What kind of Plan is this?... 1 What information does this Summary provide?...

More information

FOR PLAN SPONSOR USE ONLY.

FOR PLAN SPONSOR USE ONLY. Plan v. Settlor Expenses under ERISA and Non-ERISA Defined Benefit and Defined Contribution Plans ERISA and Department of Labor Guidance Relating to Plan Expenses (and Comparable Internal Revenue Code

More information

Fees, Expenses and Revenue Sharing: Regulation, Litigation, Legislation and Best Practices

Fees, Expenses and Revenue Sharing: Regulation, Litigation, Legislation and Best Practices Fees, Expenses and Revenue Sharing: Regulation, Litigation, Legislation and Best Practices presented by FREDRED REISH, ESQ ESQ. REISH & REICHER May 6, 2010 Plan Expenses and Compensation The trend is towards

More information

(a) Definitions. As used in this Section, the following terms have the meanings set forth below.

(a) Definitions. As used in this Section, the following terms have the meanings set forth below. EMPLOYEE BENEFIT REPS AND WARRANTIES FOR STOCK PURCHASE WHERE REPRESENT THE BUYER Section 1.1 Employee Benefits. (a) Definitions. As used in this Section, the following terms have the meanings set forth

More information

2013 Preparing for Your First 401(k) Plan Audit

2013 Preparing for Your First 401(k) Plan Audit Certified Public Accountants Business Consultants Acumen. Agility. Answers. 2013 Preparing for Your First 401(k) Plan Audit Introduction Your company is growing, and so is your 401(k) plan. But when a

More information

Appendix A: Types of Retirement Plans

Appendix A: Types of Retirement Plans Appendix A: Types of Retirement Plans (Congress periodically changes the applicable dollar amounts, percentages, and employee age requirements for the various retirement plans discussed in this section

More information

Responsibilities of Qualified Plan Fiduciaries and Staying Out of Trouble: Prohibited Transactions

Responsibilities of Qualified Plan Fiduciaries and Staying Out of Trouble: Prohibited Transactions chapter 9 and Staying Out of Trouble: Prohibited Transactions 2014 by Richard A. Naegele (Updated: 10/17/2014) chapter 9 and Staying Out of Trouble: Prohibited Transactions Table of Contents Part I:...

More information

RETIREMENT INSIGHTS. Understanding your fiduciary role. A plan sponsor fiduciary guide

RETIREMENT INSIGHTS. Understanding your fiduciary role. A plan sponsor fiduciary guide RETIREMENT INSIGHTS Understanding your fiduciary role A plan sponsor fiduciary guide ABOUT Perhaps no one topic in the employee benefits arena has drawn more attention and scrutiny over the last several

More information

ERISA Section 408(b)(2) Disclosure Document Citi Private Bank Preferred Custody Services

ERISA Section 408(b)(2) Disclosure Document Citi Private Bank Preferred Custody Services Introduction ERISA Section 408(b)(2) Disclosure Document This disclosure document ( Disclosure Document ) provides an overview of the fees and other compensation charged for or otherwise related to the

More information

The MC Academy The Employee Benefits and Executive Compensation Series. Qualified Plans Part 2

The MC Academy The Employee Benefits and Executive Compensation Series. Qualified Plans Part 2 The MC Academy The Employee Benefits and Executive Compensation Series Qualified Plans Part 2 June 4, 2013 Nondiscrimination Nondiscrimination in General Qualified Retirement Plans may not Impermissibly

More information

Paying Employee Benefit Plan Expenses Chart

Paying Employee Benefit Plan Expenses Chart Paying Employee Benefit Plan Expenses Chart This is just one example of the many online resources Practical Law Company offers. Andrée M. St. Martin and Jennifer E. Eller, Groom Law Group, Chartered This

More information

Plan Sponsor Reporting and Audit Guide

Plan Sponsor Reporting and Audit Guide Plan Sponsor Reporting and Audit Guide for defined contribution retirement plans subject to ERISA A comprehensive resource for meeting annual reporting and fee disclosure requirements Plan year 2015, version

More information

Current ERISA Developments: What They Mean to Your Clients and You

Current ERISA Developments: What They Mean to Your Clients and You October 17, 2013 Current ERISA Developments: What They Mean to Your Clients and You Daniel A. Notto Senior Vice President and Senior Retirement Plan Counsel Defined Contribution Plan Fees: The Dialog Continues

More information

UNIVERSITY OF COLORADO HEALTH AND WELFARE TRUST Denver, Colorado. FINANCIAL STATEMENTS June 30, 2012 and 2011

UNIVERSITY OF COLORADO HEALTH AND WELFARE TRUST Denver, Colorado. FINANCIAL STATEMENTS June 30, 2012 and 2011 Denver, Colorado FINANCIAL STATEMENTS TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS REPORT... 1 MANAGEMENT S DISCUSSION AND ANALYSIS (UNAUDITED)... 3 BASIC FINANCIAL STATEMENTS Statements of Net Assets...

More information

RB 38-03 Handbook: Trust and Asset Management Subject: Introduction to Individual Retirements Accounts Section: 160

RB 38-03 Handbook: Trust and Asset Management Subject: Introduction to Individual Retirements Accounts Section: 160 Office of Thrift Supervision May 20, 2010 Department of the Treasury Regulatory Bulletin RB 38-03 Handbook: Trust and Asset Management Subject: Introduction to Individual Retirements Accounts Section:

More information

Fiduciary Liability. Liability Case Studies & Strategies for 401(k) Plan Fiduciaries. 401(k) FIDUCIARY TOOLKIT. Prepared by The Wagner Law Group

Fiduciary Liability. Liability Case Studies & Strategies for 401(k) Plan Fiduciaries. 401(k) FIDUCIARY TOOLKIT. Prepared by The Wagner Law Group 401(k) FIDUCIARY TOOLKIT Sponsored by ishares Prepared by The Wagner Law Group Fiduciary Liability Liability Case Studies & Strategies for 401(k) Plan Fiduciaries IMPORTANT INFORMATION The Wagner Law Group

More information

If your plan has not been updated to reflect EGTRRA, the plan needs to be revised.

If your plan has not been updated to reflect EGTRRA, the plan needs to be revised. 1) Has your plan document been updated within the past few years to reflect recent law changes? If your plan has not been updated to reflect EGTRRA, the plan needs to be revised. Laws related to retirement

More information

Plan Sponsor Reporting and Audit Guide. for defined contribution retirement plans subject to ERISA

Plan Sponsor Reporting and Audit Guide. for defined contribution retirement plans subject to ERISA Plan Sponsor Reporting and Audit Guide for defined contribution retirement plans subject to ERISA A comprehensive resource for meeting annual reporting and fee disclosure requirements Plan year 2014, version

More information

FIDUCIARY ADVISERS KNOW THE FACTS

FIDUCIARY ADVISERS KNOW THE FACTS FIDUCIARY ADVISERS KNOW THE FACTS There is a significant amount of confusion and misinformation in the marketplace regarding investment advisers ability to relieve plan sponsors of their fiduciary responsibilities

More information

A look at the good, the bad, and the ugly of an Employee Stock Ownership Plan

A look at the good, the bad, and the ugly of an Employee Stock Ownership Plan Institutional Retirement and Trust A look at the good, the bad, and the ugly of an Employee Stock Ownership Plan Employee Stock Ownership Plans (ESOPs) are unique among retirement plans. An ESOP merges

More information

Glossary of Qualified

Glossary of Qualified Glossary of Qualified Retirement Plan Terms 401(k) Plan: A qualified profit sharing or stock bonus plan under which plan participants have an option to put money into the plan or receive the same amount

More information

Mitigating fiduciary liability for defined contribution plan investment decisions

Mitigating fiduciary liability for defined contribution plan investment decisions Mitigating fiduciary liability for defined contribution plan investment decisions Vanguard commentary June 2013 Executive summary. In recent years, several high-profile class-action lawsuits have alleged

More information

FIDUCIARY AND INVESTMENT RESPONSIBILITIES

FIDUCIARY AND INVESTMENT RESPONSIBILITIES FIDUCIARY AND INVESTMENT RESPONSIBILITIES Purpose (See R. S. 11:261) The legislature recognizes that the fiscal integrity of various governments of and within this state and the financial security of employees

More information

The ESOP Business Model. February 2013

The ESOP Business Model. February 2013 The ESOP Business Model February 2013 Topics to be Covered + Purpose and Regulatory Environment + Major Benefits of ESOPs + ESOP Transactions + Business Valuation Standards + ESOP Accounting Rules + ESOP

More information

P L A N A D V I S O R Y. The Importance of Internal Controls in Financial Reporting and Safeguarding Plan Assets

P L A N A D V I S O R Y. The Importance of Internal Controls in Financial Reporting and Safeguarding Plan Assets P L A N A D V I S O R Y The Importance of Internal Controls in Financial Reporting and Safeguarding Plan Assets P L A N A D V I S O R Y Table of Contents Introduction 3 Why Internal Control Is Important

More information

MEMORANDUM. ERISA s Structure

MEMORANDUM. ERISA s Structure 1920 N Street NW Suite 400 Washington, DC 20036-1659 T 202.833.6400 www.segalco.com MEMORANDUM To: From: Hank Kim, Executive Director and Counsel, NCPERS Sarah Mysiewicz Gill, Senior Legal Representative,

More information

SECTION: Introduction to Employee Benefit Accounts Section 730

SECTION: Introduction to Employee Benefit Accounts Section 730 CHAPTER: Compliance SECTION: Introduction to Employee Benefit Accounts Section 730 Introduction to Employee Benefit Accounts This section is intended to provide an overview of employee benefit plan administration,

More information

Be Prepared Conduct an Annual Self Audit

Be Prepared Conduct an Annual Self Audit Be Prepared Conduct an Annual Self Audit An annual self audit is an effective means of keeping a qualified plan in compliance and it offers other benefits as well. Although not all inclusive, the Q&A that

More information

Audit and Permitted Non-Audit Services Pre-Approval Policy (Pertaining to the Company s Independent Auditor)

Audit and Permitted Non-Audit Services Pre-Approval Policy (Pertaining to the Company s Independent Auditor) Audit and Permitted Non-Audit Services Pre-Approval Policy (Pertaining to the Company s Independent Auditor) Statement of Principles Pursuant to the Sarbanes-Oxley Act of 2002 (the Act ) and in accordance

More information

THE CANADIAN SOCIETY FOR INTERNATIONAL HEALTH FINANCIAL STATEMENTS DECEMBER 31, 2014

THE CANADIAN SOCIETY FOR INTERNATIONAL HEALTH FINANCIAL STATEMENTS DECEMBER 31, 2014 FINANCIAL STATEMENTS DECEMBER 31, 2014 TABLE OF CONTENTS PAGE Independent Auditor's Report 1 Financial Statements Statement of Operations and Changes in Net Assets 3 Statement of Financial Position 4 Statement

More information

Safeguarding The Future: A Basic Guide To Retirement Plan Compliance

Safeguarding The Future: A Basic Guide To Retirement Plan Compliance Safeguarding The Future: A Basic Guide To Retirement Plan Compliance Safeguarding the Future: A Basic Guide to Retirement Plan Compliance 1 Safeguarding the Future: A Basic Guide to Retirement Plan Compliance

More information

FIDUCIARY INSIGHTS & UPDATES

FIDUCIARY INSIGHTS & UPDATES FIDUCIARY INSIGHTS & UPDATES Did You Know? There are two types of advice services that can be offered in retirement plans: conflicted and nonconflicted. Conflicted advice means that the provider of advice

More information

CHOOSING A RETIREMENT SOLUTION. for Your Small Business

CHOOSING A RETIREMENT SOLUTION. for Your Small Business CHOOSING A RETIREMENT SOLUTION for Your Small Business Choosing a Retirement Solution for Your Small Business is a joint project of the U.S. Department of Labor s Employee Benefits Security Administration

More information

FIDUCIARY BEST PRACTICES:

FIDUCIARY BEST PRACTICES: FIDUCIARY BEST PRACTICES: Taking a prudent approach to plan management A White Paper Prepared by Transamerica Retirement Solutions Contents Taking a prudent approach to plan management 2 Appointment of

More information

Alternative Investments in a Qualified Retirement Plan

Alternative Investments in a Qualified Retirement Plan FIRST ALLIED RETIREMENT SERVICES Alternative Investments in a Qualified Retirement Plan Guy J. Hocker III, Esq. President, The past few years have been difficult for all investors as long-held inverse

More information

PROFIT SHARING PLANS. for Small Businesses

PROFIT SHARING PLANS. for Small Businesses PROFIT SHARING PLANS for Small Businesses 1 Profit Sharing Plans for Small Businesses is a joint project of the U.S. Department of Labor s Employee Benefits Security Administration (EBSA) and the Internal

More information

Moss Adams Introduction to ESOPs

Moss Adams Introduction to ESOPs Moss Adams Introduction to ESOPs Looking for an exit strategy Have you considered an ESOP? Since 1984, we have performed over 2,000 Employee Stock Ownership Plan (ESOP) valuations for companies with as

More information

Managing Employer Fiduciary Issues for 401k and 403b Plan Sponsors in 2013

Managing Employer Fiduciary Issues for 401k and 403b Plan Sponsors in 2013 Managing Employer Fiduciary Issues for 401k and 403b Plan Sponsors in 2013 Questions and Answers from Verisight s Presentation, January 30 th, 2013 What is the difference between a qualified plan and a

More information

F I R M B R O C H U R E

F I R M B R O C H U R E Part 2A of Form ADV: F I R M B R O C H U R E Dated: 03/24/2015 Contact Information: Bob Pfeifer, Chief Compliance Officer Post Office Box 2509 San Antonio, TX 78299 2509 Phone Number: (210) 220 5070 Fax

More information

The rules surrounding 403(b) and 401(k) plans have become more similar, Lesser Known Differences between 403(b) and 401(k) Plans

The rules surrounding 403(b) and 401(k) plans have become more similar, Lesser Known Differences between 403(b) and 401(k) Plans VOLUME 41, NUMBER 2 JOURNAL of PENSION PLANNING & COMPLIANCE Editor-in-Chief: Bruce J. McNeil, Esq. SUMMER 2015 JPPC Lesser Known Differences between 403(b) and 401(k) Plans DANIEL SCHWALLIE Daniel Schwallie,

More information

INVESTMENT ADVISORY AGREEMENT

INVESTMENT ADVISORY AGREEMENT INVESTMENT ADVISORY AGREEMENT The undersigned ("Client") employs Eclectic Associates, Inc. ("Eclectic") as investment adviser for the Client's Account(s). Eclectic Associates, Inc. agrees to serve in that

More information

Summary Plan Description

Summary Plan Description Summary Plan Description Prepared for Worcester Polytechnic Institute Defined Contribution Plan INTRODUCTION Worcester Polytechnic Institute has restated the Worcester Polytechnic Institute Defined Contribution

More information

New Comparability Plan

New Comparability Plan Raymond James John Dulay Financial Advisor 550 W. Washington Blvd. Suite 1050 Chicago, IL 60661 312-869-3889 888-711-4301 John.Dulay@raymondjames.com www.truenorthretirementpartners.com New Comparability

More information

401(k) Fiduciary Briefing

401(k) Fiduciary Briefing 401(k) Fiduciary Briefing 7 Steps to Help Plan Sponsors Mitigate Risk Presented by: John A. Frisch, CPA/PFS, CFP, AIF, PPC TM President, & Managing Partner, Qualified Plans Common 401(k) Plan Objectives

More information

Best Practices for Ensuring Retirement Plan Fee Reasonableness Multnomah Group, Inc. All Rights Reserved.

Best Practices for Ensuring Retirement Plan Fee Reasonableness Multnomah Group, Inc. All Rights Reserved. Best Practices for Ensuring Retirement Plan Fee Reasonableness 2003 2013 Multnomah Group, Inc. All Rights Reserved. Gina Gurgiolo, JD, LL.M Gina Gurgiolo is a Senior Consultant for the Multnomah Group

More information

Hughes Hubbard & Reed LLP

Hughes Hubbard & Reed LLP Hughes Hubbard & Reed LLP EMPLOYEE BENEFITS ADVISORY May 2001 Required GUST Amendments for Qualified Retirement Plans The deadline for adopting GUST amendments to qualified retirement plans and submitting

More information

PTE 84-24 and Pension Plan Transactions Involving Insurance Agents or Brokers, Pension Consultants or Mutual Fund Principal Underwriters

PTE 84-24 and Pension Plan Transactions Involving Insurance Agents or Brokers, Pension Consultants or Mutual Fund Principal Underwriters PTE 84-24 and Pension Plan Transactions Involving Insurance Agents or Brokers, Pension Consultants or Mutual Fund Principal Underwriters If an insurance agent or broker, pension consultant or mutual fund

More information

The World of 403(b) Retirement Plans:

The World of 403(b) Retirement Plans: A Nonprofit White Paper for Plan Sponsors The World of 403(b) Retirement Plans: A guide to best practices for plan fiduciaries Introduction Today, nonprofit plan sponsors need to have more oversight and

More information

Topics Covered. Two Ways To Be A Fiduciary 5/6/2015

Topics Covered. Two Ways To Be A Fiduciary 5/6/2015 ERISA Fiduciary Duty For Human Resources Professionals: Managing Risk and Implementing Cynthia A. Moore Jordan Schreier Dickinson Wright PLLC Topics Covered Who is a Fiduciary? What are Fiduciary Duties?

More information

DOL Proposes Rule Redefining Fiduciary Status in the Investment Advice Context

DOL Proposes Rule Redefining Fiduciary Status in the Investment Advice Context DOL Proposes Rule Redefining Fiduciary Status in the Investment Advice Context By Tess J. Ferrera and Christine A. Schleppegrell June 3, 2015 Background The Department of Labor (DOL) released its long-awaited

More information

Scheduled for a Public Hearing Before the SUBCOMMITTEE ON SELECT REVENUE MEASURES of the HOUSE COMMITTEE ON WAYS AND MEANS on June 28, 2005

Scheduled for a Public Hearing Before the SUBCOMMITTEE ON SELECT REVENUE MEASURES of the HOUSE COMMITTEE ON WAYS AND MEANS on June 28, 2005 PRESENT LAW AND BACKGROUND RELATING TO MULTIEMPLOYER DEFINED BENEFIT PENSION PLANS AND RELATED PROVISIONS OF H.R. 2830, THE PENSION PROTECTION ACT OF 2005 Scheduled for a Public Hearing Before the SUBCOMMITTEE

More information

PLAN MONITOR ERISA PLAN DOCUMENT FILE. Instruction Manual

PLAN MONITOR ERISA PLAN DOCUMENT FILE. Instruction Manual PLAN MONITOR ERISA PLAN DOCUMENT FILE Instruction Manual PLAN MONITOR ERISA PLAN DOCUMENT FILE According to the Employee Retirement Income Security Act (ERISA), employers who sponsor employee benefit plans

More information