Employer
sponsorships of pension plans continue to grow as employers seek to minimize
corporate taxable income, attract and maintain valuable employees, and find a
proven vehicle to place their own retirement funds. However, plan sponsorship
also brings with it new responsibilities. For example:
• At the end
of the plan year the employer will need to obtain annual plan information from
the plan administrator and review it for accuracy. Once reviewed, the employer
is responsible for distributing it to the plan participants.
• The employer
should retain a Certified Public Accountant to review for accuracy the Federal
Form 5500 or 5500 C/R prepared by the plan administrator.
• If, at
year-end, the plan has over 100 participants, the Department of Labor
requires the plan to be audited by a Certified Public Accountant.
• To ensure
that all Department of Labor, Internal Revenue and Employee Retirement Income
Security Act (ERISA) regulations are followed, the employer should find a
Certified Public Accountant who is experienced in the audit of pension plans.
Ericksen, Krentel & LaPorte has extensive experience in the audit of pension plans and can provide an
opinion on the accuracy of the information provided by the plan administrator.
Additionally, EKL professionals can assist you in determining identifying plans
and in helping you determine which plan is the best fit for your situation.
