Pentegra Stats & Surprises 2018
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The document highlights that most retirement plan liabilities stem from administrative failures rather than investments, emphasizing the importance of compliance with ERISA. It provides statistics from 2018 on applications for the EBSA's voluntary correction programs and the outcomes of civil and criminal investigations related to employee benefit plans. Additionally, it outlines common IRS compliance issues and offers contact information for Pentegra’s solutions.
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Pentegra Stats & Surprises 2018
- 1. While many assume the greatest source of retirement plan liability is the plan’s investments, in reality the vast majority of lawsuits and regulatory actions involve failures in administration. The Employee Benefit Security Association’s (EBSA) Voluntary Fiduciary Correction Program (VFCP) and Delinquent Filer Voluntary Compliance Program (DFVCP) encourage the correction of violations of ERISA by providing significant incentives for fiduciaries and others to self-correct. 2018 results may surprise you: • 1,414 applications for the Voluntary Fiduciary Correction Program (VFCP) • 19,937 applications for the Delinquent Filer Voluntary Compliance Program (DFVCP) • 1,329 civil investigations closed • 64.7% resulted in payment or other corrective action • EBSA restored over $1.6B to employee benefit plans, participants and beneficiaries • 268criminal investigations closed; indictment of 142 individuals—including plan officials, corporate officers and service providers for offenses related to employee benefit plans The IRS TopTen List Of Common VCP Submissions 1. Failure to amend for tax law changes 2. Incorrect definition of compensation 3. Failure to include eligible employees or exclude ineligibles 4. Loan Errors 5. Impermissible in-service withdrawls STATISTICS AND SURPRISES 6. Required Minimum Distribution errors 7. Employer eligibility failure 8. ADP/ACP failure not corrected timely 9. Failure to provide minimum top heavy benefit 10. Exceeding maximum contribution limits Sources: 2018 data from IRS, DOL, and federal court system websites Pentegra’s approach minimizes risks and reduces burdens. For more information, contact the Pentegra Solutions Center at [email protected] or 855-549-6689. Visit us at www.pentegra.com Pentegra Retirement Services 2 Enterprise Drive, Suite 408 Shelton, CT 06484 800.872.3473 www.pentegra.com ©Pentegra 2019