Regulatory agencies are increasingly relying on specific red flags to hone in on potential problems for employee benefit plans. Data collected through Form 5500 filings is being leveraged more aggressively to determine which plans to audit. The number of participants in total and the total coming in and out of the plan each year, as well as any referrals or complaints, could trigger an audit. The DOL is particularly focusing on benefits owed to lost or missing participants, such as those who have reached retirement age (or even age 70 1/2) and have not started collecting a benefit. Not hiring an auditor with extensive benefit plan knowledge is also a red flag for the DOL.
Legacy Partners Eileen Brassil and Michael Tiberi and Manager Katherine Johnson are speaking at the International Foundation of Employee Benefit Plan’s Accounting and Auditing Institute
- Employee Benefit Plan News, Out and About