Employee benefit compliance is often viewed as a necessary evil; it is tedious, boring and complicated but if your plans are selected for audit, the process can be a nightmare if you are not prepared.
A recent Towers Watson Retirement Plan Governance Survey revealed that 73% of respondents indicated regulatory complexity will be among the top governance risks over the next two years. The survey also revealed that only 26% of plan sponsors conduct regular compliance reviews driven by anticipated new risks and a pending government audit.
To help you assess your state of compliance we offer the following suggestions and tools:
- Review our 2007 ErisaALERT regarding the DOL data request for health & welfare plans. Review IRS data request for 401(k) plans on the IRS website. Can you locate the information? Identify and fill the gaps.
- Review our sample retirement compliance calendar; modify as needed for your plan and monitor.
- Review our H&W welfare reporting and disclosures tool. We have expanded our Health and Welfare Disclosure to include reporting section at the bottom of the checklist. In addition, we have added two columns to help you review your plans, responsible party column and compliance check result column. Utilize IRS and DOL tools.
- Don’t forget about health & welfare plan non-discrimination testing. On our website, we have a list of the various non-discrimination tests in the Tools You Can Use section of our Compliance Corner.
- Monitor your service providers. You can outsource administrative activities but you can’t outsource your fiduciary responsibility.
- Another compliance issue to review is HIPAA. As noted in blog, OCR is beginning an audit Pilot program which will include a few employer sponsored plans.
You may want to check our new blog periodically for quick updates on compliance issues.
Note: all links are active as of the date of issuance of this ErisaALERT.
Disclaimer: This material is for the sole purpose of providing general information and does not under any circumstances constitute legal advice and should not be used as a substitute for legal advice. You should seek the advice of counsel when applying the requirements to your plan. For more information on this ErisaALERT contact us by phone at 610-524-5351 and ask for Mary Andersen or 973-994-7539 and ask for Theresa Borzelli.
