Compliance Is a Critical Component of Operational Risk in DC Plans
This Public Sector Letter, on operational risk in defined contribution (DC) plans, covers a range of topics including:
- Internal controls for compliance,
- Operational compliance reviews,
- Keeping plan documents up-to-date and error-free, and
- Governance strategies for managing compliance risk.
Get Your Compliance Checklist
This publication also includes a compliance checklist for common DC plan operational errors. It covers key points like:
- Giving eligible employees the opportunity to make elective deferrals,
- Ensuring correct timing and amount of contributions,
- Complying with a 457(b) plan’s “first-of-the-month rule,”
- Processing required minimum distributions on a timely basis, and
- Exercising due diligence in searching for lost participants and beneficiaries.