Helping DB, DC and 403(b) Plans Comply with ERISA

Financial and retirement services provider Prudential has released a checklist to help plan sponsors of defined benefit (DB), defined contribution (DC) and 403(b) retirement plans to better comply with the Employee Retirement Income Security Act (ERISA).

“We know how important it is for plan sponsors to comply with ERISA and the ever-changing reporting and disclosure requirements mandated by the federal government,” say the authors of Prudential’s Compliance Checklist for 2014. “The checklist incorporates DB, DC and 403(b) requirements and provides information on the materials needed to file, filing dates and agencies to which the filings should be made.”

The checklist is divided into four broad reporting categories that include: Participants and Beneficiaries; the Internal Revenue Service (IRS); the Department of Labor (DOL); and the Pension Benefit Guaranty Corporation (PBGC).

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Some examples of items covered under Participants and Beneficiaries include the Summary of latest Annual Report or SAR, Form 1099-R and the Safe Harbor Notice. Items covered under IRS include correction of excesses with the elective deferral limit, as well Form 1099-R. Items covered under DOL include the Annual Return/Report or Form 5500, the Summary Plan Description and the Summary description of Material Modificiations, or SMM, to plan filing. Items covered under PBGC include PBGC Form 1 – Annual Premium Payment, as well as Schedule A and PBGC Form 1-EZ.

Each category then contains the following five sections:

  • Status: to monitor the activity for each item that applies to your plan.
  • Plan: indicates if the item applies to a DB, DC or 403(b) plan.
  • Item: the task.
  • Action/Support: what must be completed for each item.
  • When Due: deadline or completion time frame for each item.

The information presented in the checklist reflects reporting and disclosure requirements in effect as of January 1, 2014, according to Prudential.

A copy of the full ERISA compliance checklist document can be downloaded here.

Fiduciary to Repay Funds to Ohio 401(k) Plan

The Department of Labor (DOL) announced that the fiduciary of a Cleveland, Ohio, 401(k) plan will repay funds to the plan.

Richard Sippola, the fiduciary of the Cleveland-based Carnegie Body Company 401(k) Retirement Plan, has agreed to restore losses to the participants in the amount of $9,396.03, the full amount of unremitted contributions and loan repayments for the March 13, 2009 to January 10, 2010, in quarterly installments beginning on April 1, 2014.

The DOL had filed a lawsuit, Perez v. Sippola, et al., with the U.S. District Court for the Northern District of Ohio, Eastern Division. The suit named Sippola as a defendant, both individually and as fiduciary of the 401(k) plan. Recently, the court issued a consent order and judgment, detailing Sippola’s repayment efforts.

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The suit alleged that Sippola failed to ensure that employee pre-tax contributions and loan repayments for the period of March 13, 2009 to January 10, 2010, were remitted to the Carnegie Body Company 401(k) Retirement Plan.

The full text of consent order and judgment can be downloaded here.

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