When you offer a retirement plan to your employees, you are taking on fiduciary responsibility.
It is your responsibility to oversee and make decisions about your retirement plan for the benefit of the participants. This is also why it’s a good idea to frequently communicate with your retirement plan provider.
Two ways that you can create an impactful retirement plan are:
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Actively partnering with your plan provider to protect your plan and increase employee satisfaction.
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Following the rules that are now in place and knowing what it takes to be in compliance. Being prepared and protected.
Actively partnering with your retirement plan provider means:
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Being engaged with the employer support systems available to simplify your work.
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Being aware of and directing employees to the participant servicing options.
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Staying in constant communication with your plan provider (regarding new hires, census data, changes to the plan, etc).
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Being aware of ongoing plan maintenance (reviewing your plan’s terms, reports, etc).
IRS and the Department of Labor
Now that new regulations are in place, the regulatory entities move to the enforcement stage. Target segments are companies owned by foreign entities, small businesses, and 403(b) non-profit organizations. They have expressed the belief that 77% of these plans are not in compliance.
The result is that we must be prepared for the audit when it comes.