A Guide to Party-in-Interest and Party-in-Interest Transactions

Marcella Pascal, CPA

A party-in-interest is defined by the Employee Retirement Income Security Act of 1974 (ERISA) to include the following:

Any person who provides services to the plan,
Fiduciaries and employees of the plan,
An employer whose employees are covered by the plan,
A person who owns 50 percent or more of such an employer or employee association, and
Relatives of any of the aforementioned individuals.

Certain plan transactions with parties-in-interest are prohibited under ERISA. These transactions are:

A sale, […]

Plan Management: Are All Your Enrolled Participants Eligible? Don’t Count on it!

Linh Crider, CPA, CFE

Studies have shown that 5% to 15% of dependents covered under health plans are not eligible per Plan requirements.  Therefore, Plan management should ensure that all participants enrolled are entitled to benefits.  Not only does this control costs, but it fulfills Plan sponsors’ fiduciary obligations as required under ERISA.  As auditors, we frequently observe situations in which dependent eligibility status is questionable.  Often, these dependents are unable to prove their relationship with the Plan members.

The most […]

Principals Present at IFEBP’s 57th Annual Employee Benefits Conference

Larry Beebe, CPA

BETHESDA, Maryland (November 11, 2011) – Bond Beebe, a certified public accounting and advisory firm with offices in Bethesda, Maryland and Alexandria, Virginia, announced that three of their Principals participated in the International Foundation of Employee Benefit Plans’ (“IFEBP”) 57th Annual Employee Benefits Conference, which took place on October 30 through November 2, 2011 in New Orleans, Louisiana.  David P. Dorsey, Scott M. Price and Lawrence R. Beebe each participated in separate speaking engagements during the program.  […]

Basic Guidelines for Searching for a Benefit Plan Investment Advisor

Fabricia Edwards, CPA

An investment advisor serves a very important function in a retirement plan.  In most cases, investment advisors are given the discretion to administer and manage plan assets, which makes them fiduciaries of the plan.  As a result, advisors should act in the best interest of plan participants, with the sole purpose of protecting retirement savings.  As a plan trustee, the process of selecting an advisor must be carefully conducted and documented. What should you consider when searching […]

An Ethical Issue in a Multiemployer Benefit Plan

Larry Beebe, CPA

Trustees to a multiemployer benefit plan are generally appointed by either a sponsoring labor union or a sponsoring employer or employer association.  Once a trustee is appointed, he or she does not act as a representative of the appointing authority in making plan decisions.  Instead, the trustee must act solely in the interest of plan participants and their beneficiaries.

Does the trustee face any ethical issues by representing both a bargaining party to the collective bargaining agreement and […]

Adopting Policies Included on Form 990

Sherwin Abellera, CPA

For nonprofit organizations, Form 990 is a key document in disclosing a nonprofit organization’s financial status and internal policies and procedures.  In 2008, The Internal Revenue Service made substantial changes  to Form 990 for on the heel of the influences and impact of the Sarbanes-Oxley Act.   The revised Form 990 introduced items such as Part VI, Section B Policies where it requests “…information about policies not required by the Internal Revenue Code” such as:

Whistleblower
Document […]

New 401(k) Disclosures as Service Provider Fee Disclosure Date Moved Again

Scott Price, CPA

The US Department of Labor (DOL) has again extended the applicability date of new service provider fee disclosures under ERISA Section 408(b)(2) to April 1, 2012.  The participant-level disclosures are also extended to July 15, 2012 to coincide.  What does this mean to employers?  To employees?  Among other things, it is helpful that the employer be the one to ensure employees understand fees that exist as part of their retirement plans, how they’re being covered, and that […]