Regulations, employee turnover, cybersecurity guidelines, investment options in bumpy times—these and more mean retirement plan sponsors never have a dull day. With September fast approaching, it’s time to make note of important actions needed in the month ahead, as well as some general reminders about plan management this year.
Deadlines
BDO United States shares these action steps for completion by September 15 for plans operating on a calendar year:
- Action: If an extension was filed, this is the deadline to fund employer contributions for Partnerships and S-Corporations.
- Action: Minimum funding deadline for single and multi-employer defined benefit plans.
- Action: This is also the last date to make 2021 contributions for defined benefit pension plans.
Additional actions for the month of September include Filing of PBGC by September 26 “if plan sponsor of a single-employer defined benefit plan does not make the Sept. 15 required contribution, causing the plan to have more than $1 million in unpaid contributions.” Don’t forget that participants in plans with a December 31 year end must receive their Summary Annual Report by September 30.
Not Protected Yet?
Let’s get you covered. Running a well run company sponsored 401k plan for the times at hand gives plan sponsors more to do and worry about then ever. That’s why Colonial Surety is here to help with an affordable Fiduciary and Cyber Liability Insurance Pack that arms you with:
- Legal defense and coverage for penalties against claims of alleged or actual breaches of fiduciary duties.
- Defense against lawsuits and regulatory actions related to a cyber breach.
- Expert-led response, notification and crisis management services to prevent a cyber incident from spiraling into a disaster.
The annual cost of our Fiduciary with Cyber Pack is less than the fee for one hour of expert legal defense if a lawsuit or regulatory challenge strikes you and your business. Let’s get you covered, in minutes, today: Protect Yourself.
Additional Important Reminders
In the home stretch of 2022, plan sponsors should keep the contribution plan limits and other rolling notices for the year in mind. Here’s help:
- Employee salary deferral limits for 401(k), 403(b) and 457 plans will be $20,500. Age 50 catch-up contribution limit remains at $6,500.
- Traditional and Roth Individual Retirement Account contribution limit will be $6,000. catch-up contributions for participants age 50 and over is $1,000.
- Limitation for the annual benefit under a defined benefit plan under Section 415(b)(1)(A) will be $245,000.
- The dollar amount used to define “highly compensated employee” under Section 414(q)(1)(B) will be $135,000.
- Newly eligible employees must receive a Summary Plan
- Description (SPD) within 90 days after becoming covered by the plan.
Of course as diligently as you go about your plan sponsor duties, you can never fully eliminate your fiduciary liability risks. Under ERISA law, any individual involved in the management of a retirement plan can be held personally liable. Let Colonial Surety help you manage the inherent risks with our affordable three point protection plan: the DOL required ERISA bond to protect the assets of the retirement plan from theft; Fiduciary Liability Insurance to protect you and your assets from personal liability; and, Cyber Liability Insurance to safeguard your company and plan from covered losses and expenses in the event of a cyber breach. With Colonial, you can easily and quickly secure your affordable coverage package right now:
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Retirement Plan Administrative Policies?
Another good end of year compliance check for plan sponsors is reviewing, updating or putting in place the administrative policies needed for the retirement plan. Experts at Foley & Lardner LLP remind us that a variety of policies are required under ERISA or via specific Department of Labor guidance. Although not every recommended policy is technically “required” by law, having strong policies—and documentation of how they’ve been implemented—can come in handy in the event of government audits and litigation brought by participants. Lawyers also point out: “Having clear policies and procedures in place also helps employees involved in plan administration do their job more efficiently by mapping out appropriate steps to take when various situations arise.” In addition to an investment policy, it is advisable for 401(k) plans to also have these policies and procedures: Investment Policy; Loan Policy; QDRO Procedures; Cybersecurity Policy and Procedures; Missing Participant and Uncashed Check Procedures
Good To Do: Renew!
Is your ERISA bond current and adequate to cover your plan? Remember, the DOL mandates ERISA fidelity bonds to protect the assets of the retirement plan from theft. Uniquely, Colonial includes retroactive ERISA fidelity bond coverage for years when the plan was not adequately covered. Additionally, plan sponsors can opt for cost-saving multi-year coverage, ensuring the ERISA bond remains Department of Labor compliant for the life of its term.
Obtain or Renew Your ERISA Fidelity Bond Here Now.
Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed and in business all across the country. Serving customers since 1930, we are the trusted source for the pension industry to secure legally required ERISA bonds, fiduciary liability insurance and cyber-liability insurance. We help safeguard plan sponsors, pension professionals and financial advisors — and keep their businesses compliant — with pain-free, efficient, and friendly service every time.