Step 1:
One thing that concerns me most when I do a plan audit is the liability of the plan sponsor. So, in the next few posts, you’ll get information about how to reduce your exposure and liability with plan participants, the Department of Labor and the IRS. The first step is to take a look at the way the plan is structured – whether it’s brand new or has been in place for years. Read the rest of this entry »
Issued by the AICPA Employee Benefit Plan Audit Quality Center January 15th, 2010
On January 14, 2010 the Department of Labor (DOL) issued final regulations on the Definition of Plan Assets – Participant Contributions which establishes a safe harbor period for certain employers to deposit participant contributions on a timely basis. Read the rest of this entry »
The financial crisis made participants apprehensive about looking at their statements. However, with a wave of retiring baby boomers around the corner, you need documents to prove that you managed plan investments prudently. You definitely do not want retirees to try to hold you personally responsible for their retirement fund.
You have a fiduciary responsibility to ensure that plan fees are reasonable as a plan sponsor. The best practice for meeting this fiduciary obligation is to go shopping. Ask a variety of potential vendors the same questions about what they charge for the services they provide. Obtain bids from the most promising vendors and chose your favorite.
By Michael Lawrance
The plan auditors own the audit work papers. However, if the auditors do not document the audit appropriately, then you, the plan sponsor, can be held liable. Read the rest of this entry »