Common Violations Found in DOL Investigations (Posted May 31, 2001) Technical Tip 13: The following question and answer were from the DOL Q&A Session at the 2000 ASPPA Annual Conference: What are the most common violations found by the DOL in its investigations? DOL Response: Some common violations found by DOL in its investigations include: (1) failure of plan fiduciaries in 401(k) plans to forward employee withholdings to the 401(k) plans in a timely manner; (2) failure to make employer contributions to pension plans; (3) improper valuation of plan assets in defined contribution plans, including real estate and employer stock plans; (4) failure to make benefit payments due under terms of the plan; (5) abandonment by plan fiduciaries to the plan upon company bankruptcy and dissolution; (6) taking any adverse action against an individual for exercising his or her rights under the terms of the plan; (7) failure to hold plan assets in trust; (8) use of plan assets to benefit certain related parties-in-interest to the plan, including the plan administrator, the plan sponsor, and parties related to these individuals; (9) failure to have procedures in place for the selection of service providers; and (10) improper allocation of administrative expenses among related multi-employer plans. Caveat: The answer was drafted by Fred Reish and Brad Huss, the program moderators, based on their understandings of discussions with four senior officials of the Pension and Welfare Benefits Administration (PWBA) of the U.S. DOL. As a result, it does not represent a formal or binding position statement by the PWBA. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.