The Compliance Question

Is the pension plan being kept in compliance and upgraded with new tax laws?
 
A qualified plan must be compliant with all regulatory bodies. The IRS has jurisdiction over whether the plan qualifies for favorable tax treatment. Disqualification by the IRS for failure to meet the many technical tests can result in significant penalties and taxes.

The Department of Labor (DOL) has jurisdiction for full and timely employer reporting, claims and benefit payments and fiduciary responsibilities. Violations can result in large fines, penalties and jail time. In addition, there are very special rules involving prevailing wage work with medical benefits and/or various wage rates.

These federal standards and the implementing of them is the difference between a plan in compliance and a plan in violation. This is especially important when a non-union contractor is working and competing in a union environment.

Today, keeping a pension plan in compliance requires the plan document and services provider to be a hands-on specialist on pension plan issues.