Annual Compliance Review Components
- 1Plan document review: Confirm plan documents are current and compliant
- 2SPD review: Confirm SPD is current and has been distributed
- 3Required notices review: Confirm all required notices have been distributed
- 4MHPAEA review: Confirm comparative analysis is current and compliant
- 5Form 5500 review: Confirm Form 5500 is filed on time and accurately
- 6Broker disclosure review: Confirm Section 202 disclosures have been received and reviewed
- 7Gag clause review: Confirm gag clause attestation has been submitted
- 8Fiduciary review: Confirm fiduciary responsibilities are being met
ERISA Counsel Engagement
Engaging ERISA counsel for an annual compliance review is a best practice. ERISA counsel can identify compliance issues that HR and benefits staff may miss, provide guidance on emerging compliance requirements, and help develop corrective action plans. The cost of an annual ERISA counsel review is far less than the cost of an adverse audit finding.
Documentation
IQ Insight
Documenting compliance efforts is essential for demonstrating good-faith compliance in an audit. Maintain records of: annual compliance reviews, corrective actions taken, required notices distributed, MHPAEA comparative analyses, and broker disclosure reviews. A well-documented compliance program is the best defense against enforcement action.