Just as you wouldn’t use the same cell phone you were using 10 years ago, you wouldn’t want the same pension plan from years ago.
The Pension Protection Act (PPA) has made it necessary to amend and restate all Plan documents to comply with recent legislative changes. What an opportune time to review the entire plan and ensure all is current and efficient.
The only way to get the actual picture is to have a Compliance Review of the Plan. Get three views:
- What are employees paying
- What is employer paying
- Benchmark funds and plan administration
And don’t think everything is “OK”. Check it out! Plan sponsors and trustees now have a fiduciary requirement to do so. Labor Department audits will be tough. One thing to note is that ERISA disclosure rules require the plan sponsor determined the fees to be reasonable – for the services provided. This means that cheap is not necessarily reasonable if the provider is not performing trust accounting nor has offered all plan design options to the employer.
Trustees will be grilled on:
- When was the last time plan was benchmarked
- Timeliness of contributions
- Accuracy of contributions
- What funds are in the plan and why?
- Are plan costs reasonable for services rendered
Join us for our 401(k) webinar on March 24th to find how to make your 401(k) work for you and your employees.