Anthony A. Dreyspool, Esq.

909 Third Avenue

5th Floor

New York, NY 10022
Phone: 212-653-8810
Fax: 212-537-0239
anthonydreyspool@dreyspool-law.com
www.dreyspool-law.com
 

Charles C. Shulman,  Esq.

www.ebeclaw.com

Benefit Plan Audit

Anthony A. Dreyspool, Esq. and Charles C. Shulman, Esq. offer an important new service to employers that sponsor employee benefit plans subject to the Employee Retirement Income Security Act (ERISA). Employers need to know that their plans are being operated in compliance with ERISA and the Internal Revenue Code. In today’s environment, cost concerns may cause an employer to think twice before it retains an attorney qualified to provide the necessary review of its benefit plans. To meet this challenge, Mr. Dreyspool and Mr. Shulman have designed a Comprehensive Benefit Plan Audit. This service will be provided to plan sponsors for an affordable flat fee for each of their plans.

By retaining Tony Dreyspool and Charlie Shulman, employers can obtain an audit of their ERISA-covered plans, which will ensure that the plans are being operated in accordance with ERISA and the Internal Revenue Code and the latest rules and regulations of the U.S. Department of Labor and Internal Revenue Service.

A typical audit, to be followed by a written report, will cover the following areas:

General Plan Management and Oversight

• Delegation and allocation of fiduciary duties
• Role of Named Fiduciaries and actions taken by them during most recent plan year
• Role of sponsor Board of Directors and actions taken by the Board during most recent plan year
• Oversight of third party administrators

Disclosure Materials, including Content and Timeliness of Delivery

• Summary plan descriptions for ERISA pension and welfare plans (including timely distribution and updates every 5 years)
• Summary of material modification to plan, and timely distribution
• Summary annual report
• Plan documents
• Reservation-of-rights clause to amend or terminate welfare plans.

Reporting

• Form 5500 annual report, including compliance with November 2007 amendments
• Audit of financial statements for a plan with 100 or more participants
• Annual funding notice

Trust and Trustee Duties

• Compliance with ERISA requirement that plan assets be held in trust
• Duties of plan trustees
• Delegation by trustees of trustee duties
• Timely deposit of employee contributions to plan

Bonding

• Compliance by plan fiduciaries with ERISA bonding requirements

Claims Administration

• Delegation to claims administrator
• Compliance by administrator with plan provisions
• Efficiency of claim processing
• Solutions for persistent problems with claims administrator
• Written procedures for making and appealing benefit claims
• Plan provision giving administrator discretionary authority to interpret plan

Fiduciary Issues

• Review of compliance with ERISA’s fiduciary rules

• Prohibited transactions

• Identification of prohibited transactions between plan and parties in interest, as well as self-dealing
• Analysis of resolution options, including necessary filings with DOL and IRS

• Management of plan assets

• Compliance with ERISA requirements of prudence and diversification
• Employer stock diversification requirements
• Allocation and delegation of trustee investment duties
• Oversight by Named Fiduciary or Board of Directors
• Administration of plan loans, in-service withdrawals, QDROs and QDIAs
• Compliance with ERISA section 404(c) for defined contribution plan to avoid fiduciary liability for participant choices among funds
• Plan expenses paid by settler or by the plan

Service Provider Reporting to Plan Fiduciaries

• Frequency and content, including reporting of indirect plan expenses

Plan Qualification Requirements under Internal Revenue Code

• Pension, 401(k) or similar plan compliance with qualification rules in form and in operation
• Automatic enrollment in 401(k) plans
• Review of nondiscrimination compliance and review of minimum participation tests for pension or 401(k) plans
• Safe harbors to avoid discrimination testing
• Top-heavy restrictions where key employees own more than 60% of plan assets
• Rollovers between plans and IRAs
• Roth 401(k) after-tax alternative under a qualified plan
• Review implementation of minimum funding requirements for defined benefit plans
• Break in service requirements
• Code limits on (i) deductible contributions, (ii) maximum contributions and benefits, (iii) salary deferrals, and (iv) the maximum compensation taken into account;  definition of compensation
• Vesting requirements
• Participant loans and hardship withdrawals in form and operation
• Distribution requirements; joint and survivor annuity and spousal consent requirements, where applicable
• Timely amendments of plans for changes in the law (including for frozen plans)
• Timely IRS determination letters or prototype sponsor IRS opinion letters
• Plan termination and plan freeze issues

COBRA Compliance and COBRA 2009 Premium Subsidy Program for Health Plans

• Notices to COBRA participants and beneficiaries
• Administration of subsidy program

     If you wish to have your plans audited or obtain other ERISA advice, please contact Anthony A. Dreyspool at 212-653-8810 / anthonydreyspool@dreyspool-law.com or Charles C. Shulman at 201-357-0577 / cshulman@ebeclaw.com.