Compliance Radar

Trademark Makes It Time to Rethink Terms for Multiple Employer Plans

Mon, 28 May 2012 01:03:42 PDT

"[O]n March 14, 2012, a firm in Tennessee filed a trademark application with the U.S. Patent & Trademark Office for the term 'The Open MEP' [saying it] refers to 'consulting services in the field of retirement plan administration and fiduciary compliance; financial administration of retirement plans', and that they have been using this term to describe their business since Oct. 31, 2004. While multiple employer plans with adopting employers sharing a common plan design or investment strategy have been around longer than Oct. 31, 2004, referring to them as 'open MEPs' is such a misnomer that there should be no fight within the industry over this trademark." (The Pension Protection Act Blog)

[Guidance Overview] Compliance Checklist 2012 for Defined Benefit Plans, Defined Contribution Plans and 403(b) Plans That Are Subject to ERISA (PDF)

Tue, 22 May 2012 09:18:10 PDT

Very nice 42-page chart. (Prudential)

Final Regulations Regarding Fee Disclosures | 401k Fiduciary News

Tue, 08 May 2012 08:19:47 PDT

The compliance deadline for the final regulations issued by the Department of Labor regarding the disclosure of fees and any related information by retirement plan service providers to plan fiduciaries is Continue reading.

Fiduciary Links: 408(b)(2) Rules are Really ... - 401k Fiduciary News

Mon, 07 May 2012 08:34:04 PDT

While much of the coverage on new ERISA fee disclosure rules, including coming from us, has understandably been focused on compliance measures for advisors, it is important to remember the reason for these rules in the ...

NTSAA Defends Public School Employees ... - 401k Fiduciary News

Fri, 04 May 2012 08:51:40 PDT

The 2012 NTSAA Compliance Conference kicked off this morning with a presentation by Chris DeGrassi, Executive Director of NTSAA, on the state of the 403(b) market. In reviewing some of the events of the past year, ...

NTSAA Hosts 2012 Compliance Conference | 401k Fiduciary News

Fri, 20 Apr 2012 14:10:14 PDT

The NTSAA Compliance Conference is a national forum for professionals in the 403(b) and 457(b) marketplace. A variety of professionalsincluding plan sponsors, providers, agents, broker/dealers, and sales/marketing ...

IRS Completes Project on Domestic Trusts Maintained by Foreign Employers

Thu, 19 Apr 2012 08:33:34 PDT

"[IRS Employee Plans Compliance Unit] has completed its first international project to determine if: (1) foreign entities are maintaining domestic trusts, (2) these entities are complying with the domestic trust rules, and (3) an employer whose EIN begins with 98 is a foreign employer or has a foreign affiliation. The project also reviewed the employer's plan number, plan type and Form 5500 filing history." (Wolters Kluwer Law & Business / CCH)

EP exam efforts focus on 401(k) compliance problems

Wed, 11 Apr 2012 17:00:00 PDT

Institutionalizing 408b-2 Compliance in Financial Service Firms: New Responsibilities for the Securities Compliance Professional

Thu, 05 Apr 2012 16:48:27 PDT

"Because 408b-2, in particular, is a prohibited transaction rule, ... financial service firms have a huge economic stake in not just making the initial disclosure [under the DOL regulations], but also in making sure that permanent compliance procedures are established, implemented and audited on a routine basis. A number of firms are also beginning to take a closer look at their myriad of revenues streams to make sure that not only are they reported correctly, but that there is a Prohibited Transaction Exemption that otherwise permits the revenue." (Business of Benefits)

[Opinion] Trade Industry Letter to EBSA on Electronic Delivery Guidance under Section 404(a) of ERISA (PDF)

Wed, 28 Mar 2012 06:33:25 PDT

"[The trade industy appreciates] that the Department is engaged in a review of the current electronic disclosure safe harbor. [The trade industy has] survey data to share regarding EBSA's Technical Release 2011-03R and electronic disclosures generally. From survey results and discussions with various companies, [The trade industy is] concerned that this interim guidance does not provide meaningful incentives or make it more feasible for employee benefit plan sponsors and their service providers to use electronic media instead of paper. With the compliance date of the participant fee disclosure rule fast approaching, [the trade industy is] also concerned that the Department's most recently issued regulatory agenda does not include guidance on electronic disclosure." (The SPARK Institute)

[Guidance Overview] March 2012 Employee Benefits Update (PDF)

Tue, 27 Mar 2012 21:48:26 PDT

In this update: Compliance Deadlines and Reminders; Fee Disclosure Compliance Tools; Treasury Regulations on Lifetime Income Options; Final Summary of Benefits and Coverage Regulations; Guidance on PPACA Automatic Enrollment (Reinhart Boerner Van Deuren s.c.)

Is the Recession Causing Small Retirement Plans to Skimp on Compliance Efforts?

Fri, 23 Mar 2012 09:04:09 PDT

"Have difficult economic times caused small retirement plans to cut back on compliance with the tax laws? According to the March 20 issue of the IRS electronic newsletter, Employee Plans News, 1 in 4 smaller retirement plans reviewed starting in 2007 under the IRS's LESE ('Learn, Educate, Self-Correct, and Enforce') project had engaged in at least one prohibited transaction." (Bloomberg BNA)

Regulatory Responsibilities Top Retirement Plan Concerns for Professional Service Firms

Fri, 23 Mar 2012 07:49:07 PDT

"Eighty-four percent of professional service firms ... say compliance with regulations is their top concern when sponsoring retirement plans for their employees ... 28 percent of firms with fewer than 50 employees do not feel that their fiduciary requirements are being met. Additionally, 28 percent of plan sponsors were unable to show a complete understanding of ERISA." (Nationwide)

Finding the Lowest Cost Share Class for Retirement Plan Investments (PDF)

Thu, 22 Mar 2012 07:48:41 PDT

"Plan sponsors and their providers must maintain a competitive fee structure for their retirement plan investments or face potential liability from ERISA non-compliance and participant lawsuits. [The target page explains how to monitor and select] the lowest cost share class available." (Securian Retirement)

Failure to amend among the top compliance problems for 401(k) plans, IRS reports

Wed, 21 Mar 2012 17:00:00 PDT

Must a Summary of Benefits and Coverage be provided for a health FSA?

Current Challenges and Best Practices for ERISA Compliance for 403(b) Plan Sponsors

Fri, 16 Mar 2012 09:04:13 PDT

"The objectives of this report are to (1) identify areas where guidance is confusing or lacking relating to complying with the new 403(b) regulations and (2) to determine what actions the Department of Labor (DOL) could take to enhance compliance with the regulations issued by DOL, as well as to ease certain regulatory burdens for 403(b) plan sponsors, especially smaller employers." (2011 Advisory Council on Employee Welfare and Pension Benefit Plans)

Controlled and Affiliated Service Group Rules for Retirement and Cafeteria Plans

Wed, 14 Mar 2012 07:48:30 PDT

"Compliance with the various rules for qualified plans is difficult even for companies that are not part of a controlled group. It becomes even more difficult when operating multiple operations domestically. Adding foreign operations into the equation adds substantial additional complexity which companies need to recognize and address. The risk of noncompliance is too costly to ignore!" (EisnerAmper)

Exclusive Interview with Ary Rosenbaum: The 3 Biggest Compliance ...

Mon, 12 Mar 2012 21:26:06 PDT

Here's a quick overview of the most important facts surrounding key regulatory laws and rules, with some practical legal advice thrown in.

IRS Checking Pension Plans' Compliance with Funding-Based Benefit Restrictions

Mon, 05 Mar 2012 19:18:17 PST

"Sponsors of single-employer pension plans less than 80% funded may receive requests from the IRS Employee Plan Compliance Unit about compliance with PPA's funding-based benefit restrictions. The IRS is sending the requests to a random sample of plans reporting adjusted funding target attainment percentages below 80% on Form 5500 Schedule SB for 2009 or later plan years." (Mercer)

FACE TIME Mark Scheffler on big changes for 401(k)s | INSIGHT ...

Tue, 28 Feb 2012 17:50:24 PST

When Mark Scheffler, principal and chief compliance officer of Appleton Group Wealth Management, founded his firm 10 years ago, it was the first in Northeast Wisconsin to offer fee-only services. Scheffler earned credentials ...

Seven 401(k) Strategies for 2012

Fri, 24 Feb 2012 06:33:58 PST

"Some strategies for maximizing the performance of 401(k) plans, spurring greater participation levels, and achieving regulatory compliance are boilerplate at this point for many plan sponsors. But they should consider some other, specific measures in response to recent events and trends in the defined-contribution-plan space" (CFO)

Clarification of Form 1099-R could improve taxpayer compliance, TIGTA finds

Wed, 22 Feb 2012 16:00:00 PST

Initial report on 401(k) questionnaire indicates widespread compliance with governing rules

Tue, 21 Feb 2012 16:00:00 PST

IRS Releases 401(k) Compliance Check Survey Results | SmartHR

Tue, 21 Feb 2012 12:01:51 PST

There are more than half a million 401(k) plans in the United States, covering 60 million Americans, says the IRS. That is just some of the information in the 401(k) Compliance Check Questionnaire Interim Report, which the ...

The Tax Code 'Controlled Group' Rules Leave Many Plans (unwittingly) Out of Compliance (PDF)

Mon, 20 Feb 2012 19:48:25 PST

"Federal law requires that employers within the same 'controlledgroup' of businesses be treated as a single employer for many employee benefit purposes, including discrimination testing. Many executives -- particularly those of small, closely held employers -- don'tknow their employers are members of a controlled group. A distantholding company, venture capitalist, or group of individuals or trustsmight own the employer, leaving the executives wholly unaware aboutwho else nests in the corporate tree." (Lockton Companies, LLC)

PBGC Launches Temporary Waiver of Unpaid Premium Penalties

Wed, 15 Feb 2012 20:18:23 PST

"Under a new temporary voluntary compliance program, the Pension Benefit Guaranty Corp. will waive penalties on employers who have never paid federally required pension insurance premiums. To qualify for the relief, employers will have to contact the PBGC by July 31 to discuss how they can comply and then pay the required amount by Aug. 31." (Business Insurance)

DOL Releases Long-Awaited 401(k) Fee Disclosure Rule

Fri, 10 Feb 2012 03:00:05 PST

The Department of Labor's Employee Benefits Security Administration last week released its long-awaited final rule on 401(k) fee disclosures, rule 408(b)(2), and in doing so extended the compliance deadline three months to ...

IRS Newsletter Highlights Leased Employee Compliance Project, Electronic Signatures, and More

Thu, 09 Feb 2012 13:03:25 PST

"The newsletter also includes a discussion of current priorities of the IRS Employee Plans Examinations office, including the 401(k) Compliance Check Questionnaire Project. And there is a summary of recent changes to Form 5300, including a requirement to provide information on pending IRS or DOL Voluntary Correction Program applications." (Thomson Reuters/EBIA)

IRS to Answer Your Questions on 401(k) Compliance | SmartHR

Thu, 09 Feb 2012 04:42:04 PST

IRS will host a telephone forum on 401(k) Compliance on March 6.

IRS Interim Report on the Section 401(k) Compliance Check Questionnaire Responses (PDF)

Sun, 05 Feb 2012 21:18:16 PST

"The 401(k) Questionnaire requested information in the following areas: demographics, plan participation, employer and employee contributions, top-heavy and nondiscrimination rules, distributions and plan loans, other plan operations, designated Roth features, IRS voluntary compliance and correction programs, and plan administration." (U.S. Internal Revenue Service)

Retirement Plans, Milan Probe, EU Cartel Fines: Compliance - Bloomberg

Thu, 02 Feb 2012 21:22:23 PST

Retirement Plans, Milan Probe, EU Cartel Fines: ComplianceBloombergThe agency said it would grant an exception to required minimum distributions from retirement accounts in certain cases. Asset managers and insurers including BlackRock Inc. (BLK), State Street Corp. (STT), Prudential Financial Inc. (PRU), MetLife Inc.

[Guidance Overview] Headlines in Employee Benefits Law E-Alert, January 2012 (PDF)

Wed, 01 Feb 2012 03:33:29 PST

The newsletter covers select compliance deadlines and reminders, and retirement plan, health and welfare plan, and general developments. (Reinhart Boerner Van Deuren s.c.)

ERISA Bond Reminder from Surety One. Is Your Plan in Compliance for 2012? - MarketWatch (press release)

Tue, 31 Jan 2012 10:02:42 PST

ERISA Bond Reminder from Surety One. Is Your Plan in Compliance for 2012?MarketWatch (press release)Poindexter refers to the fidelity bond required by the Employee Retirement Income Security Act. The purpose of the bond is to provide protection from fraud or other dishonest acts committed by a plan's trustee(s). Generally, the bond must be equal to ...and more »

Benchmarking: The Key to a 401k Plan Sponsor's Fiduciary ...

Mon, 23 Jan 2012 21:47:54 PST

Reviewing the history of your 401k plan creates a foundation for a good fiduciary compliance review - but may reveal cracks that need to be filled in first.

[Guidance Overview] Sample Compliance Calendar for Retirement Plans (PDF)

Tue, 17 Jan 2012 09:03:18 PST

"This calendar provides general key retirement plan compliance requirements common to most calendar year plans." (ERISAdiagnostics Inc.)

Scriveners' Errors, Drafting Errors, Operational Failures, Retroactive Amendments, Reformations, ERISA, and the Tax Qualification of Pension Plan Trusts

Tue, 17 Jan 2012 08:48:18 PST

"There are often discrepancies between a pension plan's governing documents and the plan's operations . . . . Such a discrepancy if not corrected pursuant to the terms of the governing documents, is described as an operational failure . . . . This article offers suggestions by which the [IRS] may lessen the burden on itself and conscientious plan sponsors, while improving compliance with (1) the tax-qualification rules of Section 401(a) of the [IRC] and (2) the similar provisions of [ERISA]." (Social Science Research Network)

Feds say no deadline extension for 401(k) regs | CFODailyNews ...

Tue, 17 Jan 2012 05:00:27 PST

Employers that thought the Department of Labor (DOL) would be swayed by recent requests to push back the deadline for compliance with the 401(k) fee disclosure | %blog_title | No-nonsense Finance news and insights to ...

Top Five Fiduciary Issues of 2011 from Fees to Fund Lineups

Mon, 16 Jan 2012 08:33:19 PST

"Some of these fiduciary issues require plan sponsor compliance; others are simply topics that are important to sponsors seeking to maintain their status as employers of choice." (The Vanguard Group, Inc.)

Can a Professional Retirement Plan Advisor Really Make That Much of a Difference? (PDF)

Sun, 15 Jan 2012 22:18:15 PST

"This survey of 409 employer offering a 401(k) or a 403(b) plan completed in September 2011 found that sponsors who partner with a Professional Retirement Plan Advisor enjoy superior retirement outcomes for their participants, superior understanding of fiduciary issues, improved plan designs, improved plan arrays, improved overall asset allocation among plan participants, more reasonable fees, and greater confidence in plan compliance and investment options." (Retirement Advisor Council / EACH Enterprise, LLC)

Implications from the 2011 Towers Watson U.S. Retirement Plan Governance Survey (PDF)

Tue, 10 Jan 2012 10:18:53 PST

"[T]he Towers Watson 2011 survey on qualified retirement plan governance finds that the process of decision making and oversight varies widely. While most employers are concerned with compliance, many are not taking all the steps available to manage the financial, organizational and other risks created by ineffective plan governance." (Towers Watson)

Bipartisan House Bill Seeks to Ease Compliance Burdens for Retirement Plan Sponsors and Participants

Tue, 10 Jan 2012 03:19:24 PST

"Among the pension reforms: plan assets would not be reduced by credit balance when determining funded status for benefit restrictions, IRS would have to make interim amendment rules more workable, and certain plans with service-based normal retirement ages would be deemed lawful (minimum 30 years of service or plan is governmental)." (Mercer LLC)

2011 NTSAA 403(b) Compliance Resolution Summit

Mon, 09 Jan 2012 06:19:52 PST

"The third annual NTSAA 403(b) Compliance Resolution Summit attracted a large gathering of product providers, third party administrators, and resource people from the Department of Labor, Internal Revenue Service, American Institute of Certified Public Accountants, the Association of School Business Officials, the 501(c)(3) community, and legal firms for open dialogue on best practices to contribute to the operation of compliant 403(b) plans. All three of the Summits have contributed greatly to the resolution of what were systemic problems through the adoption of best practices that most in the industry can follow. The result has been the standardization of processes and procedures that most can utilize for a smoothly operating 403(b) plan." (National Tax Sheltered Accounts Association via American Society of Pension Professionals & Actuaries)

A business owner's resolution worth keeping - 401(k) compliance

Wed, 04 Jan 2012 17:22:58 PST

When a company sponsors a plan, such as a 401(k), it must do annual maintenance to ensure it remains compliant with the IRS rules and regulations. Often clients and business owners struggle to keep up with the IRS rules ...

Three of Four Retirement Plans Don't Review Compliance Regularly, According to Survey

Mon, 02 Jan 2012 17:45:02 PST

"Only 26% of defined contribution and defined benefit plan executives conduct regular operational and regulatory compliance reviews, according to a Towers Watson & Co. survey on retirement plan governance issues." (Business Insurance)

Private Sector Defined Benefit Plans Vanishing - Smartmoney.com (blog)

Fri, 30 Dec 2011 11:28:56 PST

Private Sector Defined Benefit Plans VanishingSmartmoney.com (blog)By Alicia Munnell Alicia Munnell, the director of the Center for Retirement Research at Boston College, is a weekly contributor to “Encore.” In some ways, it's old news. Defined benefit plans in the private sector are disappearing. ...3 of 4 retirement plans don't review compliance regularly: Towers WatsonBusiness Insuranceall 2 news articles »

[Guidance Overview] Department of Labor Releases Revised Interim Policy on use of Electronic Media for Certain Disclosures in Participant-Directed Individual Account Plans (PDF)

Thu, 22 Dec 2011 09:49:31 PST

Extensive summary; includes very useful chart of compliance options. (Transamerica Center for Retirement Studies)

[Opinion] Impact of GASB Public Accounting Proposals on Employers Participating in State Retirement Systems (PDF)

Mon, 19 Dec 2011 07:33:47 PST

"If these proposals are finalized without change, participating employers will need to substantially revamp their accounting systems at considerable expense. Compliance is expected to be the responsibility of the employer, and the retirement system's ability to provide assistance in many cases may be limited. That may leave the burden of compliance on the contributing government employers." (Groom Law Group)

IRS Highlights Plan Distributions, Examination Priorities, FAQs for Form 8955-SSA, and More

Sun, 18 Dec 2011 19:03:46 PST

"The IRS's quarterly newsletters provide a helpful overview of recent IRS and DOL developments, a compliance calendar, and links to more detailed information. We note that a common theme in recent articles has been the practices and procedures needed to maintain plan compliance." (Thomson Reuters/EBIA)

Sample Certification of Reasonableness of Plan Services (PDF)

Fri, 16 Dec 2011 05:34:06 PST

"This is a sample certification that illustrates the type of documentation that plan sponsors need to establish compliance with 408(b)(2) requirements." (DALBAR, Inc.)

'Learning & Development' Events announced for 2012 - IFA Magazine

Mon, 12 Dec 2011 22:21:43 PST

'Learning & Development' Events announced for 2012IFA MagazineThe events will run throughout the country and are to be supported by providers including Metlife, Just Retirement, LV=, Prudential, Aviva and JP Morgan, in addition to SimplyBiz's own compliance and technical teams. Furthermore, SimplyBiz are in the ...

IRS Gives Update on 401(k) Questionnaire Project

Thu, 01 Dec 2011 10:03:34 PST

"Over 95% of the 1,200 plan sponsors contacted by the Internal Revenue Service Employee Plans Compliance Unit voluntarily completed the online 401(k) Compliance Check Questionnaire." (PLANSPONSOR.COM)

Relief for 403(b) Plan Compliance Failures

Wed, 30 Nov 2011 08:03:28 PST

"In the course of an IRS teleconference on August 25, in which a number of the members of our practice group participated, the IRS confirmed that an update and expansion of EPCRS is expected in the 'near future' so as to extend all correction opportunities, including remediation of document failures, to 403(b) plan sponsors." (Fox Rothschild LLP)

[Guidance Overview] 2012 Regulatory Limits: Poster and Compliance Calendar

Tue, 29 Nov 2011 08:03:24 PST

"[The poster] is a convenient way to remind you of important regulatory limits and dates for retirement plans. Note that there are increases in regulatory limits for 2012. [The calendar] lists recurring compliance and notice requirements for qualified defined contribution plans." (The Vanguard Group, Inc.)

[Guidance Overview] Responsibility to Collect Plan Contributions

Sun, 20 Nov 2011 19:03:21 PST

"The DOL has stated that an overwhelming number of filings in its Voluntary Fiduciary Compliance Program (VFCP) involve the late deposits. Hopefully, a future modification to the VFCP program will include de minimis criteria to provide a self-correction method." (McKay Hochman Co., Inc.)

Business people - Dubuque Telegraph Herald

Sat, 19 Nov 2011 22:15:07 PST

Business peopleDubuque Telegraph HeraldWallace Gibson, QPA, QKA, joined Steele Capital Management as director of Retirement Plan Services. He has 20 years of experience in the retirement-planning industry with 15 years as compliance manager for Great Lakes Pension in Detroit, Mich. ...

Headlines in Employee Benefits Law, November 2011 (PDF)

Wed, 16 Nov 2011 20:48:20 PST

The newsletter covers select compliance deadlines and reminders, retirement plan developments, health and welfare plan developments, and general developments. (Reinhart Boerner Van Deuren s.c.)

FOIA request to IRS for information on pension plan's participation in voluntary compliance program denied

Sun, 13 Nov 2011 16:00:00 PST

[Opinion] Coming Soon to a Theatre Near You: The Latest Adventures in Fiduciary Advice

Tue, 08 Nov 2011 12:48:29 PST

"Opening scene: The Starship Pension Prize has discovered a strange new plan-et inhabited by the Klingons, a crafty race known for hawking lightly regulated insurance products. The Starship's chief officer, Captain James T. Kirk, plans to explore compliance with the Federation's fiduciary adviser rule." (fi360 Blog)

LA JOLLA: 401k workshop offered

Thu, 27 Oct 2011 18:55:16 PDT

Torrey Pines Bank and Miller Russell and Associates will sponsor a free workshop on 401(k) fees and compliance and best practices for fiduciaries from 11:30 a.m. to 1 p.m. Nov. 16 at the Hyatt Regency, 3777 La Jolla Village ...

IRS Compliance Initiatives

Fri, 14 Oct 2011 06:31:42 PDT

BNA is sponsoring a webinar titled "IRS Compliance Initiatives," to be held Tuesday, Nov. 22, 2011, from 1 - 2:30 p.m. ET. The program will feature Monika A. Templeman of the IRS, and Thomas Schendt of Alston & Bird LLP,...