Potential Troubles for Your Retirement Plan

June 11, 2013 at 8:48 am Leave a comment

I was fortunate enough to attend the 2013 ERPA Conference in Denver this year. An area that I felt was useful to share with plan sponsors and the rest of the industry were potential problems with your retirement plan. In addition, an announcement was made that the IRS will be including a tool, called a QSAT, on their website this summer. The QSAT will be a tool to help plan sponsors self-identify problems with their plans. As a result, plan sponsors can proactively fix their plans.

In the meantime, common potential problem spots for your plan are summarized. Common issues that every plan sponsor and their service providers should be reviewing are concerns regarding loans and hardships, eligibility requirements, and compensation. In particular, the retirement plan document needs to be followed in all areas. Appropriate documentation for loans and hardships need to be maintained. Compensation testing and the use of the appropriate definition for different aspects of administration such as contribution allocation and compliance testing are other areas of concern. This is not an all-inclusive list but a starting point for review.

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ERPA’s ?! Internal Controls for Your Retirement Plan

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Christine Gurney

A pension professional who shares her thoughts and ideas about the pension world for industry members and anyone else interested.

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