Documentation
- The plan document has been amended for all legislatively required changes, and the most current version of the document is used to operate the plan.
- The plan files contain a copy of the IRS Favorable Determination Letter and/or Prototype Opinion or Advisory Letter.
- The plan is being operated in accordance with its terms and any new legal requirements that may not yet be reflected in plan documents.
- The plan trustees have been properly appointed and the plan’s trust agreement has been properly executed.
- The plan’s Administrative Committee been properly appointed and the plan’s records properly reflect the Committee’s current composition.
Fiduciaries and Service Providers
- All plan fiduciaries are aware of and understand their fiduciary [1] responsibilities.
- All plan fiduciaries attend periodic meetings to review their fiduciary responsibilities and provide fiduciary training as appropriate.
- The plan maintains a fidelity bond covering fiduciaries and all persons handling plan assets.
- If deemed appropriate or necessary, fiduciary liability insurance has been purchased to protect plan fiduciaries from personal liability for plan losses.
- The plan maintains service contracts with all plan fiduciaries and key service providers that clearly outline each party’s responsibilities.
- The fees paid by the plan are reasonable, considering various factors, such as the size of the plan, the type of investment options offered and the services being provided.
- The plan’s various service providers communicate effectively with each other to ensure that all plan services are integrated in a timely, accurate and cost efficient manner.
- The named fiduciary periodically monitors all experts and providers retained to provide services to the plan to ensure they are meeting performance standards.
Operational Compliance
- Each aspect of the plan is operated in compliance with plan document provisions, unless the plan is following new legal requirements that have not yet been incorporated into the document.
- Meeting minutes document all decisions made with respect to the plan, with particular emphasis on the selection, review and monitoring of investments and service providers.
- The plan has timely filed an accurately completed Form 5500.
- Salary deferrals and loan repayments are forwarded to and invested in the plan as soon as administratively practicable.
- The plan maintains an ERISA [2]-compliant process for responding to participant benefit claims.
Investments
- The plan offers a broad range of investment options.
- The plan maintains and abides by a written investment policy statement.
- The plan fiduciaries monitor the investment options periodically (no less frequently than annually) to ensure that the funds continue to meet the requirements set out in your investment policy statement.
- Decisions made with respect to the investment options, particularly those that relate to selecting or deleting options, are properly documented.
- The plan has affirmatively decided whether or not to comply with ERISA Section 404{c} [If the plan intends to rely on ERISA Section 404{c}, the plan must comply with all 404{c} requirements.]
Communications/Disclosure
- All participants have received an up-to-date Summary Plan Description (SPD).
- If the plan has changed significantly since the SPD was issued, all participants have received a Summary of Material Modifications (SMM).
- All participants receive a Summary Annual Report (SAR) each year after the Form 5500 is filed.