This issue’s topics include:

Charging plan expenses to participants correctly

Shaving a few basis points off plan participants’ annual returns on their retirement plan accounts can put a significant dent in their asset accumulations by the time they’re ready to retire. For that reason, the question of which plan expenses are charged to participants, and which must be borne by the plan sponsor, is a critical issue to resolve correctly. Improperly allocating expenses to participants could be a serious fiduciary breach. This article summarizes the difference between administrative and settlor functions and which can be charged as plan expenses.

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Keep your eye on the ball

Plan forfeitures must match plan document

It’s a routine matter for employees to forfeit retirement plan benefits. Even so, plan sponsors can’t afford to become blasé about it; ERISA demands more than an “easy come, easy go” attitude about the matter. This article reviews how plans can forfeit benefits and when benefits are forfeited. A short sidebar covers what plans can do with forfeited funds.

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New rules affect disability benefit claim denials in retirement plans

Retirement plans (or other ERISA-regulated benefits, including nonqualified “top hat” plans) containing a disability benefit are affected by the new DOL rules that took effect in April 2018. The new regulations, in the works since 2015, pertain to disability claims and the processes governing appeals of a denial of disability benefits. This article reminds sponsors of 401(k) plans and defined benefit pension plans with disability benefits that they have until the end of this year to amend their plans to reflect the new rules.

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Do you know what to do with an SOC report?

Service organization control (SOC) reports come in several varieties. They generally pertain to service organizations, like retirement plan recordkeepers or third party administrators (TPAs). The American Institute of Certified Public Accountants (AICPA) determines the scope of each SOC report. This short article reviews the types of SOCs and the reason for their use.

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Compliance alert

This feature lists a few key tax reporting deadlines for September.

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our Employee Benefit Plan Services, please feel free to contact me directly.

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