The recent financial crises is causing problems al over. This goes as well for people who are nearing retirement age, and had to postpone their giving up work, since their retirement plans have lost in value.
In America the court has ruled that a company can be held liable for the above mentioned losses, and this fact may have very serious consequences.
Points to look out for to avoid possible legal trouble:
• If as a company you are appointing another party to execute instructions re investment choices, make sure the work is done in a timely manner, and with necessary accuracy.
• A company is now required to separate the employees’ retirement contributions immediately, and no later than fifteen days after end of month. For smaller companies, the limit goes down to seven days.
• Make sure that your employees doe not for any reason, delay their monthly retirement payments. This will cause disruption, since the markets change daily, thus leading to potential losses.
• Consider the option of inviting a financial planning manager, to give a talk to your employees, and update them on the current financial position of their plan.
• Avoid errors that would later require to be corrected, when collecting the employees’ personal data.
• Make sure your files are annually updated with all necessary signatures; this will affect your audit.
• Ensure that your auditor understands the legal requirements of retirement plans, such that he can make sure that all your paperwork is legally up to date.
• Give your auditor a copy of all the signed agreements, and explain to him how the retirement system is currently being monitored.
• Last but not least, make sure that your auditor has all the contracts, forms and other paperwork he requires before he starts the audit.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment