Message from the Firm
By Nicholas J. White
It's January, and for our ERISA Department that means we've made it through another busy holiday season of helping plan sponsors and their advisors wrap up their employee welfare and benefit plan issues for 2005, and finalize their plans for 2006. January also marks a change in my responsibilities for the American Society of Pension Professionals and Actuaries (ASPPA). I have now completed my year of service on ASPPA's Executive Committee and as the General Co-Chair of Conferences, and I am returning to ASPPA's Government Affairs Committee as a Co-Chair of the Administrative Relations Committee.
Our ERISA attorneys continue to assist plan sponsors and their advisors with IRS audits, Department of Labor (DOL) investigations and correction of compliance defects. In this issue, Nick Waddles discusses the changes made this year to the DOL's Voluntary Fiduciary Correction (VFC) Program. The DOL has characterized the changes as resulting in both an expansion and a simplification of the program. Nevertheless, Nick explains why the revised program won't necessarily result in greater use by--or availability to--plan sponsors, and why this places a premium on self-audits and correction. Marty Heming's article highlights the value of seeking qualified professional advice before implementing certain types of retirement plan investment strategies. Marty focuses on a case involving a DOL investigation and determination that a real estate investment was a prohibited transaction. The cost of correction was substantial and had to be borne by the plan sponsor.
As always, we welcome your comments and questions. Please let us know if we can be of assistance to you or your clients. We hope you had a great holiday season and we wish you the best for the new year!
Reprinted with permission,
© 2006 Reish Luftman Reicher & Cohen. All rights reserved. The ERISA Audit Report is published as a general informational source. Articles are general in nature and are not intended to constitute legal advice in any particular matter. Transmission of this report does not create an attorney-client relationship. Reish Luftman Reicher & Cohen does not warrant and is not responsible for errors or omissions in the content of this report.
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