According to a report in CFO Daily News, the average fine resulting from a DOL audit has risen fourfold in just four years, and now tops $600,000. In addition, 88 people including corporate officers and providers were criminally indicted last year. Three out of four DOL audits resulted in a fine, penalty or reimbursement. The most common errors included:
• Excluding certain types of compensation like bonuses, overtime and vacation pay
• Incorrect asset valuation
• Prohibited transactions like conflicts of interest and misuse of plan assets
And if you think that efforts to reduce the federal deficit will provide any relief, think again — the DOL is planning on hiring 1,000 new enforcement officers. Don’t be the next plan sponsor fined, penalized or forced to make reimbursements for plan errors.
As independent retirement plan advisers, the team at Heffernan Financial Services can help your plan in meeting your requirements as a Fiduciary. We have helped a number of our clients with the DOL Audit process and are very familiar with what they are looking for. We are the proactive force in keeping your plan in compliance, contact us today.
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