Fiduciary Tool Kit for Compliance: Common Errors in Qualified and Nonqualified Retirement Plan Administration

The Investment Company Institute reported that U.S. retirement plan assets reached $21.7 trillion as of Sept. 30, 2013, which represents 34 percent of all household financial assets in the U.S.1 The Department of Labor reported in June 2013 that 88.7 million Americans have defined contribution plan accounts, based on data from 2011 annual reports.2 With so many millions of people depending on these plans for retirement security, the government has placed significant legal requirements on the role of fiduciaries. Employers that sponsor retirement plans are being put under an increasingly high degree of scrutiny for their actions and inactions with respect to the qualified and nonqualified plans that they sponsor. Plan sponsors are subject to fiduciary standards, but do not always understand their role and obligations as a fiduciary. To comply with the plethora of duties and requirements governing plans, plan sponsors must understand their role as a fiduciary, identify plan errors and resolve those errors to reduce risks of noncompliance and exposure to fiduciary liability and penalties

Fiduciary Tool Kit for Compliance: Common Errors in Qualified and Nonqualified Retirement Plan Administration

The Investment Company Institute reported that U.S. retirement plan assets reached $21.7 trillion as of Sept. 30, 2013, which represents 34 percent of all household financial assets in the U.S.1 The Department of Labor reported in June 2013 that 88.7 million Americans have defined contribution plan accounts, based on data from 2011 annual reports.2 With so many millions of people depending on these plans for retirement security, the government has placed significant legal requirements on the role of fiduciaries. Employers that sponsor retirement plans are being put under an increasingly high degree of scrutiny for their actions and inactions with respect to the qualified and nonqualified plans that they sponsor. Plan sponsors are subject to fiduciary standards, but do not always understand their role and obligations as a fiduciary. To comply with the plethora of duties and requirements governing plans, plan sponsors must understand their role as a fiduciary, identify plan errors and resolve those errors to reduce risks of noncompliance and exposure to fiduciary liability and penalties