When your number is up and the DOL comes knocking, will you be in the minority of DB plan sponsors with satisfactory responses to their inquiries, or might you be subject to a long and arduous audit process?
While the initial focus of these audits is often Required Minimum Distributions (RMDs), these audits can delve into other areas, such as:
- Normal Retirement Dates (NRD)
- VT Benefit Notifications
- Participant’s Earliest Retirement Date (ERD) for spouse benefits
Over the last couple years, the DOL has been focusing audit efforts on missing participants (and beneficiaries and QDRO alternate payees!) in defined benefit pension plans. And since they are finding most plans to be out of compliance in this area, this activity shows no signs of letting up. Indeed, the opposite is true.
Be prepared before the DOL comes knocking
We put together a two-page document of recommendations.