Regulatory Update
  
Given all of the recent and upcoming changes, it can be difficult for a plan sponsor to track their compliance with all the regulatory requirements. Multnomah Group has prepared our 2011 Regulatory Update to provide an overview of the major changes of which plan sponsors should be aware.  

2011 Regulatory Update - Multnomah Group, Inc.

Multnomah Group will also be hosting a webinar on this topic Thursday, August 18 at 10 a.m. Pacific. To register, please use the link below.

 Webinar Registration

The Proper Use of Forfeitures

For plans with an employer contribution and vesting schedule, forfeitures are a common occurance as participants leave the company before they become fully vested. The forfeited dollars are generally accumulated in a suspense account to be used in a manner consistent with the terms of the plan document. The IRS has outlined a few common mistakes that plan sponsors make with regard to their forfeitures, and they provide ways to fix these mistakes and avoid them in the future. Most importantly, the IRS notes that forfeitures need to be used in the year they are generated and should not accumulate over multiple years.

The Fix Is In: Common Plan Mistakes - Improper Forfeiture Suspense Accounts - IRS.gov

A "Church Plan" Still Has Fiduciary Responsibilities

A "church plan" is a plan sponsored by a church or a church-affiliated organization. Generally, church plans are exempt from ERISA and therefore are able to avoid most of the sometimes onerous demands of ERISA. A recent court case, Johnson v. The Evangelical Lutheran Church in America, highlights the need for "church plan" administrators to follow the same sound fiduciary principles that ERISA requires.  

Church Plan Administrators are Subject to State Law Claims - Verill Dana, LLP