Procedures

The number one Plan administration procedure for all employer-sponsored retirement plans is to follow the plan document. To bridge this, Plan Sponsors will set-forth plan specific procedures to ensure the terms of the Plan document carry over to the Plan’s operation (safe-guards).

What can occur is that not everyone working on the Plan has read the plan document, or another example is when the plan moves to another provider’s document and/or service agreement and differences exist.

Like procedures for your business, plan procedures provide step-by-step guidance, what involvement is needed when, and a foundation to enhance your administrative efficiency. Procedures will combine the terms of the plan, the forms you use, and the steps you take each time a plan event occurs.

Annual procedure are useful as well. For example, required regulatory participant notices, reviewing provider disclosures, year end testing, and the 5500 processes.

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