This document provides an overview and agenda for a presentation on common 403(b) plan compliance issues and solutions. It begins with introductions of the presenter and his background and experience. It then outlines the IRS and DOL voluntary correction programs that can be used to resolve plan failures. The majority of the document details frequent plan document issues, operational errors, and governance problems that 403(b) plans encounter. It provides examples and recommends best practices for correction.
The legislative landscape in which retirement plans must operate is constantly evolving to meet the need for an appropriate level of industry regulation. Legislative and regulatory activity during 2013 to date has created numerous opportunities and challenges that retirement plan sponsors must address. In this program, Erik Daley, CFA, will provide an overview of this year's legislative and regulatory developments and focus on practical, consultative tips on how they might apply to your retirement plan.
Even with the most earnest intentions, mistakes inside of a retirement plan will most likely happen from time to time. Plan sponsors can take solace in knowing that there is a corrective solution for nearly every compliance problem. Knowing how to correct a plan error will help plan sponsors act swiftly so as not to ripen the problem should one occur. It can also help save the plan sponsor money. In this program, Multnomah Group will provide an overview of the correction programs available through both the Internal Revenue Service (for Internal Revenue Code issues) and the Department of Labor (for issues under the Employee Retirement Income Security Act).
The past 30 years has born witness to the collapse of the private pension system with for-profit employers, tax-exempt entities and now the governmental sponsors replacing defined benefit pension programs with defined contribution plans. This practice spawned a well-documented transfer of investment and funding risk from employer to employee. Now, most defined contribution plans render the employee the sole decision maker on the four factors that determine an employee's ability to retire successfully: contribution rate, investment strategy/return, time horizon, and spending needs in retirement.<br /><br /> In this presentation we will address what employers can do to help employees meet the demands of the new retirement plan era.
HunterMaclean ERISA and employee benefits attorney Rebecca Sczepanski made this presentation at the 2015 Savannah Fiduciary Seminar. Her presentation covered a summary of the legal issues regarding fiduciary status, including how to identify ERISA and state law fiduciaries. She provided tips for avoiding or mitigating risks associated with defined plan fiduciary status as well as an update on major fiduciary litigation.
Randall Webb - TJSDD - Common Pitfalls and Deficiencies Found in Plan AuditsDowney Brand LLP
At the 2015 Savannah Fiduciary Seminar, Randall Webb of TJS Deemer Dana presented the most common deficiencies identified during plan audits and how plan sponsors should correct those deficiencies going forward.
Rick Pummill - TRPC - Effective Plan Design and AdministrationDowney Brand LLP
In his presentation at the 2015 Savannah Fiduciary Seminar, Rick Pummill of The Retirement Plan Company presented on how to make 401(k) or Defined Contribution Plan operations more effective, from design tips to electronic delivery of disclosures.
COVID-19: The Impact on Retirement PlansCBIZ, Inc.
As COVID-19 continues to impact the stock market and organizations around the world, we understand that you have concerns about how recent market fluctuations may affect your retirement plan. What you should know is that there are options you may have to minimize these effects on your business and your employees. We’ve developed a summary of these complex issues in this whitepaper. You will learn about:
- Impacts to both defined benefit plans and defined contribution plans
- Potential options for your organization to minimize negative effects on your business and your employees
- Legislative updates from the CARES Act
- Important considerations and actions to take next
The latest Retirement Plan News contains articles on the following: 1) Make Benchmarking Your Plan An Annual Exercise 2) Employer Contribution Trends 3) QDIAS Ten years On
The legislative landscape in which retirement plans must operate is constantly evolving to meet the need for an appropriate level of industry regulation. Legislative and regulatory activity during 2013 to date has created numerous opportunities and challenges that retirement plan sponsors must address. In this program, Erik Daley, CFA, will provide an overview of this year's legislative and regulatory developments and focus on practical, consultative tips on how they might apply to your retirement plan.
Even with the most earnest intentions, mistakes inside of a retirement plan will most likely happen from time to time. Plan sponsors can take solace in knowing that there is a corrective solution for nearly every compliance problem. Knowing how to correct a plan error will help plan sponsors act swiftly so as not to ripen the problem should one occur. It can also help save the plan sponsor money. In this program, Multnomah Group will provide an overview of the correction programs available through both the Internal Revenue Service (for Internal Revenue Code issues) and the Department of Labor (for issues under the Employee Retirement Income Security Act).
The past 30 years has born witness to the collapse of the private pension system with for-profit employers, tax-exempt entities and now the governmental sponsors replacing defined benefit pension programs with defined contribution plans. This practice spawned a well-documented transfer of investment and funding risk from employer to employee. Now, most defined contribution plans render the employee the sole decision maker on the four factors that determine an employee's ability to retire successfully: contribution rate, investment strategy/return, time horizon, and spending needs in retirement.<br /><br /> In this presentation we will address what employers can do to help employees meet the demands of the new retirement plan era.
HunterMaclean ERISA and employee benefits attorney Rebecca Sczepanski made this presentation at the 2015 Savannah Fiduciary Seminar. Her presentation covered a summary of the legal issues regarding fiduciary status, including how to identify ERISA and state law fiduciaries. She provided tips for avoiding or mitigating risks associated with defined plan fiduciary status as well as an update on major fiduciary litigation.
Randall Webb - TJSDD - Common Pitfalls and Deficiencies Found in Plan AuditsDowney Brand LLP
At the 2015 Savannah Fiduciary Seminar, Randall Webb of TJS Deemer Dana presented the most common deficiencies identified during plan audits and how plan sponsors should correct those deficiencies going forward.
Rick Pummill - TRPC - Effective Plan Design and AdministrationDowney Brand LLP
In his presentation at the 2015 Savannah Fiduciary Seminar, Rick Pummill of The Retirement Plan Company presented on how to make 401(k) or Defined Contribution Plan operations more effective, from design tips to electronic delivery of disclosures.
COVID-19: The Impact on Retirement PlansCBIZ, Inc.
As COVID-19 continues to impact the stock market and organizations around the world, we understand that you have concerns about how recent market fluctuations may affect your retirement plan. What you should know is that there are options you may have to minimize these effects on your business and your employees. We’ve developed a summary of these complex issues in this whitepaper. You will learn about:
- Impacts to both defined benefit plans and defined contribution plans
- Potential options for your organization to minimize negative effects on your business and your employees
- Legislative updates from the CARES Act
- Important considerations and actions to take next
The latest Retirement Plan News contains articles on the following: 1) Make Benchmarking Your Plan An Annual Exercise 2) Employer Contribution Trends 3) QDIAS Ten years On
Single Audit Webinar Presentation - November 6, 2015Sikich LLP
In late 2013, the U.S. Office of Management and Budget (OMB) announced comprehensive grant reform rules titled “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).”
The new Uniform Guidance that is effective for years ending on or after December 26, 2014 have replaced the audit and reporting requirements under the U.S. Office of Management and Budget (OMB) Circular A-133. No early implementation is permitted.
The most well known change the Uniform Guidance implemented was the increase in the Single Audit threshold from $500,000 to $750,000, however, there are many other changes that will impact the amount of Single Audit testing and reporting which affect both the auditee and auditor.
In June 2015, the Governmental Accounting Standards Board (GASB) approved two new statements that call for more prominence and accuracy when displaying Other Post-Employment Benefit (OPEB) liabilities, such as health insurance for retirees. This webinar will focus on the changes coming to the industry -- from implementing these statements, to strategies for explaining these changes to media and taxpayers.
Now that fee disclosures are being delivered to employers and participants each year, how do you fulfill your fiduciary duty to determine the reasonableness of plan fees and communicate the information to employees?
An effective way is with a documented fee review process. Check out our presentation from a recent learning symposium for plan fiduciaries.
TriStar Pension Consulting presents changes to Retirement plans like 401(k)'s in the year 2015 along with pending legislation. Find out what is happening in Washington and how it will affect your Retirement Plan.
Single Audit Webinar Presentation - November 6, 2015Sikich LLP
In late 2013, the U.S. Office of Management and Budget (OMB) announced comprehensive grant reform rules titled “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).”
The new Uniform Guidance that is effective for years ending on or after December 26, 2014 have replaced the audit and reporting requirements under the U.S. Office of Management and Budget (OMB) Circular A-133. No early implementation is permitted.
The most well known change the Uniform Guidance implemented was the increase in the Single Audit threshold from $500,000 to $750,000, however, there are many other changes that will impact the amount of Single Audit testing and reporting which affect both the auditee and auditor.
In June 2015, the Governmental Accounting Standards Board (GASB) approved two new statements that call for more prominence and accuracy when displaying Other Post-Employment Benefit (OPEB) liabilities, such as health insurance for retirees. This webinar will focus on the changes coming to the industry -- from implementing these statements, to strategies for explaining these changes to media and taxpayers.
Now that fee disclosures are being delivered to employers and participants each year, how do you fulfill your fiduciary duty to determine the reasonableness of plan fees and communicate the information to employees?
An effective way is with a documented fee review process. Check out our presentation from a recent learning symposium for plan fiduciaries.
TriStar Pension Consulting presents changes to Retirement plans like 401(k)'s in the year 2015 along with pending legislation. Find out what is happening in Washington and how it will affect your Retirement Plan.
When it comes to the division of assets in divorce, deferred compensation and stock options offer particular challenges for matrimonial attorneys. In particular, stock options acquired by a spouse – most likely through their employer – are many times considered marital property, and as such, require special attention in terms of valuation and tax.
Retirement Presentation For Small Businessguest4a21e5
Prepare for your future today with the right type of tax advantage savings plans. offer your employees the benefit of a retirement plan. Learn from this presentation what you can do today to make a bettewr tomorrow.
For eight years, Richard (Dick)Shafer has advised not-for-profit plan fiduciaries as executive director of Well and Good LLC, in Madison, Wisconsin. Prior to his work in Madison, Dick Shafer gained expertise in 403(b) retirement plans in California and Massachusetts.
Clark Schaefer Hackett created this buyer’s guide to help you and other plan fiduciaries make an informed decision when hiring a quality auditor for your employee benefit plan audit. This guide covers your fiduciary responsibilities, the timing of a plan audit, audit quality, finding the right auditor and more.
Common 401(k) Plan Operational DeficienciesSkoda Minotti
This presentation covers some of the most common 401(k) plan deficiencies and errors and how plan sponsors can go about correcting these issues before they escalate.
This webinar provided a 401(k) and pension plan accounting and auditing update for plan sponsors, including management, accountants, and Human Resource professionals. In addition, the presentation provided an update on recent Employee Retirement Income Security Act (ERISA) criminal cases, the outcomes of those cases, and the prosecution.
Retirement plans are subject to a very complex web of regulations governing their administration, and mistakes inevitably happen, even in the best-run plans. Recently, Brian Gallagher presented to Plante Moran on the various programs available for correcting such errors. If your organization would be interested in a similar presentation, or if you have questions about correcting errors involving your own retirement plan, please contact Fraser Trebilcock Employee Benefits attorney, Brian Gallagher at 517.377.0886 or bgallagher@fraserlawfirm.com.
Discussion of recent IRS and Department of Labor 401(k) and pension plan investigations; Learn how you, your management, and your HR team can prevent some of the costly mistakes associated with running your 401(k) and pension plans; Learn the steps to take when sponsoring a retirement plan to avoid problems down the road; Learn what to do when you come across a problem that has already happened.
A short two-page description of the five most common 401k plan mistakes.
Contact us at www.retirecents.com to make an appointment.
We Build, Repair and Improve your 401(k) Plan.
GRAND CANYON UNIVERSITY SCENARIO GENERATORModule 4 Scenari.docxwhittemorelucilla
GRAND CANYON UNIVERSITY SCENARIO GENERATOR
Module 4 Scenario: Hiring Plan and Compensation Package Proposal
Type: Family Business
Size: Small Business
Sector: Computer Repair
Funding: Investors/Lenders
Stakeholders:
Employees
Decision makers:
Owners
Formal organization:
LLC
Human Resources Department:
Pay-for service arrangement: employment law attorney
Stage in Organizational Lifecycle:
Birth
THESE ARE THE GIVEN CONSTRAINTS:
ORGANIZATIONAL BACKGROUND:
Founded in: 1970
Dedicated to: The company thrives to provide the best possible
experience to all of its business partners and clients.
Culture Our culture is akin to that of a small family. All our
employees are partners in the business, share our success, and help us
sustain the core values that make us successful.
Structure: Our organization is very flat and consists of three tiers:
owners, managers, and non-manager employees.
Mission statement: To ensure that each customer receives prompt,
professional, friendly, and courteous service. To maintain a
professional and friendly environment for our cusotmers and staff. To
provide at a fair price using only quality components. To ensure that
all customers and staff are treated with the respect and dignity they
deserve. To thank each customer for the opportunity to serve them. By
maintaining these objectives we shall be assured of a fair profit that
will allow us to contribute to the community we serve.
Vision statement: Within the next five years, we will become a leading
provider of products and services to small businesses by providing
page 1 / 4
customizable, user-friendly solutions scaled to small business needs.
INTEGRITY: By dealing honestly with our clients, staff, vendors and
community.
RESPONSIBILITY: By considering the environment in which we do
business, community views and the common good.
PROFITABILITY: By being aware that an appropriate level of profit is
necessary to maintain our business and allow our values to continue to
be observed.
Values statement: In conducting our business, we will realize our
vision by performing our affairs so that our actions provide
confirmation of the high value we place on:
Present goals: To reduce delivery and distribution time of products
and services. To reduce the number and frequency of customer
complaints, and to improve the response time of customers inquiries.
Past goals: To reduce employee turnover by 20 percent by introducing a
new employee assistance program. To improve productivity by
implementing a company-wide training program. To actively recruit
skilled workers into the organization.
Brief SWOT analysis:
Strengths:
Positive cash flow
Experienced management
Good business reputation
Known for product quality
Weaknesses:
Experienced management approaching retirement
Insufficiently diversified revenue streams
Products and/or services have not been updated for a long time
Too much internal bureaucracy
Opportunities:
Internat ...
Qualified Retirement Plans: Surviving the Ever-Changing Regulatory EnvironmentQuarles & Brady
Please join us via webinar to gain practical knowledge directly applicable to your daily employee benefits responsibilities from a panel with over 100+ years of combined experience in the "trenches." Through their extensive plan administration, legal, compliance, regulatory and investigations experience, you will hear about the new regulatory changes effective in 2019 along with perspectives on avoiding and surviving uninvited visits from the Internal Revenue Service and the Department of Labor. Actual scenarios will be used to illuminate what worked well or not so well. You will also learn how to assess when and where it makes good business sense to approach the government to formally ask for absolution and when reasonable remedial action, consistent with standards of fairness and cost-efficiency, is sufficient and appropriate.
Dynamic Changes Occurring: OMB's Uniform Grant GuidanceStreamLinkSoftware
At this year’s National Association of State Auditors, Comptrollers and Treasurers (NASACT) Annual Conference in Chicago, Illinois, StreamLink Software CEO, Adam Roth, and partner at accounting firm Plante Moran, Michelle Watterworth, presented on UGG’s impact on grant administration and audits.
In this Webinar attendees discussed and learnt about the changes which impact their audit(s). During this Webinar, we discussed:
1. CMS 2015 Program Audit Protocol changes
2. The importance of a correct universe
3. “Monitoring” is not good enough
4. Beneficiary Investigation Analysis (BIA)
AICPA Webcast "Understanding the New Revenue Recognition Standard" presented ...Brian Marshall
This webcast provides an overview of the new revenue recognition standard and will discuss how to prepare for the transition to the converged standard. This webcast will also outline current and planned AICPA resources to help companies transition to the new standard as it has the potential to reverberate through company processes and systems in significant ways.
http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/Accounting/PRDOVR~PC-WBC14031N/PC-WBC14031N.jsp#.U58-xpRdWuo
Similar to Top Common Code Section 403(b) Problems and Solutions (20)
Under ERISA Section 408(b)(2), retirement plan fees must be reasonable in light of the services being rendered. Retirement plan fees are also a hot target in the courts, most notably with last year's Tussey vs. ABB, Inc. decision. In this presentation, we discuss just what the reasonableness standard means for today's retirement plan sponsors, and an action plan for employers.
Retirement plan fiduciaries have a responsibility for the prudent selection and monitoring of plan investments. If your investment selection decisions are based solely on investment style, fees and historical returns, you may be missing the larger picture. In this presentation, we present a rigorous, multi-step process for selecting investment managers to serve your plan’s and participant’s needs. Using a use case scenario, we will demonstrate how to define the “Investment Universe”, the use and limitations of quantitative analysis, conducting proper qualitative due diligence, and the selection of a prudent investment for a participant-directed defined contribution retirement plan.
Target date funds are quickly becoming the dominant investment option within many defined contribution retirement plans. Regulators have taken notice with the Department of Labor (DOL) contemplating new disclosure requirements for plans offering target date funds.
In order for a plan sponsor to meet their fiduciary obligations to prudently select and monitor their target date funds, a thorough analysis is necessary because of the underlying complexity of these products and their unique structure relative to the traditional "core" investment options that defined contribution sponsors are used to evaluating.
In this program, we present a framework for a sound fiduciary evaluation of a target date series.
Retirement plan sponsors have a multitude of recordkeeping vendors from which to choose in assisting them with plan administration, compliance and participant education. Each potential vendor espouses a value proposition, which must be weighed in relationship to the plan’s needs, goals and objectives to determine if that particular vendor is a suitable fit.
While conducting a vendor search may seem burdensome, the benefits associated with the search make it more than worthwhile. By conducting a vendor search, plan sponsors can satisfy certain fiduciary responsibilities and optimize the plan’s benefit to its participants. Moreover, the perceived vendor search burden is significantly eased when a few simple best practices are followed.
In this presentation, we explore the benefits and best practices associated with conducting a vendor search. It concludes with three case studies that demonstrate the positive results and improvements that plan sponsors might expect from a well executed vendor search.
For nearly 40 years, ERISA has required retirement plan fiduciaries to ensure the reasonableness of service and investment fees paid by the plan. However, fee reasonableness has only recently grabbed headline attention due largely to the finalization of the 408(b)(2) regulations and the Missouri district court's decision in Tussey v. ABB, Inc. Despite the strength of its fee reasonableness standard, ERISA provides little practical guidance as to how and when plan fiduciaries should be making and documenting their fee reasonableness determinations. In this presentation, we provide a historical overview of the legislative, regulatory and judicial context surrounding this fundamental fiduciary duty; a look at recent Department of Labor regulatory examination activity centered on fee reasonableness; and a practical, step-by-step guide to meeting the fee reasonableness requirements.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
2. Brian Montanez, AIF®, CPC, QPA, QKA, TGPC
A Principal of the Multnomah Group, Brian is responsible for client service and
business development in Northern California. Brian advises an array of
organizations,
including
hospitals,
educational
institutions,
not-for-profit
organizations and private employers. Brian regularly consults with plan sponsors
and industry experts on fiduciary governance issues, investment menu construction,
vendor fees and services, as well as plan design.
Brian has over 19 years of combined experience working in the securities,
investment advisory, and retirement services industries. Prior to joining Multnomah
Group, Brian served as both Vice President and Regional Sales Director with other
national investment advisory and retirement services firms.
Brian is an Accredited Investment Fiduciary (AIF®), certified by the Center for
Fiduciary Studies, as well as a Certified Pension Consultant (CPC) and Tax Exempt
& Governmental Plan Consultant (TGPC), certified by the American Society of
Pension Professionals and Actuaries (ASPPA). He holds a B.S. in Economics &
Finance from Bentley University in Massachusetts.
2
3. Agenda
1.
2.
Brief Overview of DOL Correction Programs
3.
Common Document Issues
4.
Common Governance Issues
5.
3
Brief Overview of IRS Correction Programs
Common Compliance Errors and Failures
4. Correction Programs
IRS: Employee Plans Compliance Resolution System (EPCRS)
General correction principles under the EPCRS:
• Internal controls to prevent recurrences
• Reasonable an appropriate IRS defined correction
• Restore/Make whole participants
Under EPCRS, there are generally 4 types of Qualification Failures:
• Plan Document Failure – a plan provision (or absence thereof) that, on its face,
violates the requirements of Section 403(b) of the Code
• Operational Failure – arises solely from the failure to follow plan provisions
• Demographic Failure – failure to satisfy the nondiscrimination requirements, or
coverage requirements that is not an Operational Failure
• Employer Eligibility Failures – the employer is not eligible to sponsor type of plan
4
5. Correction Programs
IRS: Employee Plans Compliance Resolution System (EPCRS)
Self-Correction Program (SCP)
• Limited to Operational Failures (not following document provisions)
• Insignificant, or Significant if within 2 years of PYE
• No notification or fees to the IRS is required
Voluntary Correction Program (VCP)
• For plan Qualification Failures and errors that are not eligible for self-correction, OR for when
you want IRS assurance about the methods used to fix the error
• You must make a written submission and pay a compliance fee to IRS
• Errors are corrected and plan status preserved with IRS help and approval
Audit Closing Agreement Program (Audit CAP)
• Permits you to correct errors and preserve the tax benefits for plan participants and sponsors
• Fee to the IRS will be greater than the fee required under VCP, but less than the tax, interest
and penalties due if the plan lost its tax-favored status
5
6. Correction Programs Cont.
DOL: Employee Benefits Security Administration (EBSA)
Delinquent Filer Voluntary Compliance Program (DFVCP)
• Assists late or missed Form 5500 filers in coming up to date with corrected filings
Voluntary Fiduciary Correction Program (VFCP)
• Affords plan sponsors and officials the chance to correct any of a specific 19 transaction
• The VFCP also provides immediate relief from payment of excise taxes under a class
exemption which covers six transactions
• Violations can be fully and correctly resolved in four steps.
• For a list of violations and corrective actions, visit www.dol.gov/ebsa and click on “Correction
Programs”
6
7. Common Plan Document Issues
Issue: No Plan Document by December 31, 2009
No signed plan document
Late adoption
Correction:
Locate and Review:
• Any type of plan documents, contracts, service agreements
• Board resolutions or minutes
• Call Vendor(s)
Submit under VCP and pay the applicable compliance fee
See IRS VCP Submission Kit specifically intended for 403(b) plan sponsors that
missed the 2009 deadline for adopting a written plan
If the failure to timely adopt a written plan was the only failure – and if the
submission is made by December 31, 2013 – 50% reduction in the compliance fee
7
8. Common Plan Document Issues
Issue: Missing Amendments
Legally Required
Voluntary/Discretionary
Correction:
May correct failure by making a submission under VCP and paying the applicable fee
Consider retroactive amendments to expand benefits
See IRS VCP Submission Kit specifically intended for 403(b) plan sponsors that missed
the 2009 deadline for adopting a written plan
8
9. Common Plan Document Issues
Issue: ERISA vs. Non-ERISA
Many still claiming Non-ERISA
401(a) match based on 403(b) participation
To be exempt:
• Statutory - Church or Governmental
• Design or Practice
• Voluntary participation
• Solely enforceable by participant
• Limited ER involvement (loans, hardships)
• ER received no compensation
• More than one 403(b) contractor (unless burdensome)
Correction/Best Practice:
If 2007-2 is not clear to you, find counsel
See DOL FAB 2007-02 and/or DOL FAB 2010-01 exemption descriptions
Prior Form 5500 filings – DOL’s DFVCP
9
10. Common Plan Document Issues
Issue: Multiple 403(b) Plans
Do you have more than one 403(b) plan
• ERISA or Non-ERISA
• Extra administration
• Extra communications
• Extra confusion for participants
Best Practice:
Review benefits rights and features
Review testing
Review investments structure
Consider consolidating plans
10
11. Common Plan Document Issues
Issue: Missing or Outdated Beneficiary Designations
Participants fail to designate or update designation to reflect life events
Multiple plan vendors:
• Contract or Plan level designation
• Who is coordinating for distributions
Best Practice:
Have default beneficiaries in Plan doc
Conduct annual education program for reminder
See our white paper, “Best Practices for Beneficiary Designations in Retirement Plans”
11
12. Common Compliance Errors/Failures
Issue: Definition of Compensation (Testing & Understanding)
Whose Compensation is effectively excluded (HCE vs. NHCE)
• Bonus
• Overtime
Definition testing 414(s)
Severance vs. Post Severance Compensation
• Termination date
• 2 ½ Months
5-Year Post Severance
Correction:
Amend definition to Safe-Harbor or reasonable definition
Is restoration of benefits required
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13. Common Compliance Errors/Failures
Issue: Failure to “Administer” to the Definition of Compensation
Actual deferrals do not match participant instructions
Match or Non elective contributions are based on wrong compensation
Incorrect nondiscrimination testing
Exceed individual limits under 402(g) or 415(c)
Determination of HCE could be wrong
Correction/Best Practice:
Read, question and understand all that is included and excluded in definition
Simplify definition of compensation (Cost v Value)
Restore participant to place as if no error (missed $ and earnings)
Self-Correction Program may be used to correct insignificant operations problems
See Rev. Proc 2013-12 Section 8.2 for determination of Insignificance
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14. Common Compliance Errors/Failures
Issue: Excess Contributions
Compensation Limits ($255,000 for 2013)
Salary Deferral limits
• 402(g)
• Age 50
• 15-Year (included in 415(c))
Excess Employer Contributions
Correction/Best Practice:
Review limits prior to each year end
Refund and 1099-R
Multiple prior years – SCP or VCP
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15. Common Compliance Errors/Failures
Issue: Eligibility
Universal Availability
• IRS: if any employee of the employer is eligible to make elective deferrals, all
employees must be eligible
• Five permitted exclusions
• Improperly excluded participants
Rehires
• Break in Service
• Auto Enrollment
Correction/Best Practice:
Confirm that vendor or benefits is tracking rehires
Potential retroactive entry dates (ER and salary deferrals)
Restore via SCP, or VCP if significant error
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16. Compliance Errors/Failures
Issue: 15-Year special catch-up
Data availability
HR & participant understanding of rule
Ordering rules
Correction:
Recharacterize
Refund and report on 1099-R
Submit via SCP
VCP if significant
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17. Common Compliance Errors/Failures
Issue: Notice Delivery
SAR, SPD/SMM, 404(a), Universal Availability, QDIA, ACA
Who is responsible
• TPA
• Recordkeeper
• Staff
• RPAC
Delivery method
Best Practice:
Outsource delivery and document
Assign a responsible internal party and document delivery
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18. Common Compliance Errors/Failures
Issue: Late Deposit of Employee Deferrals
Small plans
Large plans
7 Days, 15 Days Or ?
Correction:
Make deposit plus earnings adjustment
Correct under DOL’s VFCP
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19. Common Compliance Errors/Failures
Issue: QDIA
DOL Provides clear guidance:
• DOL FAB 2008-03
Sponsor default investing mistakes
• Non-QDIA
Correction/Best Practice:
Document DOL approved QDIA choice
Make participant whole under VCP
Correct Prohibited Transaction under VFCP
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20. Common Compliance Errors/Failures
Issue: Termination Dates
Plans not timely notifying recordkeepers of participant termination dates
Legacy Vendors
Multiple Vendors
Effects distributions
• Regular post severance distributions
• RMDs
Correction/Best Practice:
Develop a practice of notifying all vendors at the same time
Perform an annual audit of termination dates
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21. Common Governance Issues
Issue: QDRO Administration
Legal document being approved by non legal resources
The QDRO must contain certain specific information
The QDRO may not require some common distributions
Best Practice:
Outsource to Recordkeeper if available
Establish relationship with legal resource
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22. Common Governance Issues
Issue: Lack of Plan Oversight
Compliance obligations
• Who is responsible and how are they ensuring compliance
Fiduciary obligations
• Who is responsible and how are they ensuring prudence
Best Practice:
Create a board delegated RPAC
• Governance Charter
• Investment Policy Statement
• Fee Policy Statement
• Minutes
• Document, Document, and Document
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23. Common Governance Issues
Issue: Lack of Fee Benchmarking
Not a claim of excessive fees
Evidence of no fiduciary oversight of fees
Best Practice:
Understand details of 408(b)(2) notice
Benchmark fees annually
Consider per head pricing
Hire an independent professional
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24. Common Governance Issues
Issue: Lack of Internal Controls
Anyone who touches the plan or its operations could commit an administrative or fiduciary
violation
• Payroll processing
• Benefits communication
• Distributions processing
• Disclosures delivery
• Investment decisions
• Required Government filings
Best Practice:
Read and understand your plan auditor’s management letter (not a compliance review)
Create a checklist of administration and fiduciary obligations and annually verify that each
person who touches any aspect of the plan understands their responsibility and is executing
their responsibilities accurately
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25. Resources
Web Search For:
IRS EPCRS
403(b) Fix It Guide
403(b) Check List
Delinquent Filer Voluntary Compliance Program
Voluntary Fiduciary Correction Program
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27. Disclosures
Multnomah Group, Inc. is an Oregon corporation and SEC registered investment adviser.
Any information and materials contained herein or on our website are provided for
general informational purposes only and are not intended to be comprehensive for any
particular subject. Multnomah Group utilizes information from third party sources believed
to be reliable but not guaranteed, and as a result, information is provided to you "as is."
We do not represent, guarantee, or provide any warranties (either express or implied)
regarding the completeness, accuracy, or currency of information or its suitability for any
particular purpose. Multnomah Group shall not be liable to you or any third party resulting
from any use or misuse of information provided.
Receipt of information or materials provided herein or on our website does not create an
adviser-client relationship between Multnomah Group and you. Multnomah Group does
not provide tax or legal advice or opinions. You should consult with your own tax or legal
adviser for advice about your specific situation.
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