SO YOU’RE A PLAN SPONSOR – WHAT’S YOUR JOB?

At Capital Retirement Plan Services, the good standing of your Plan is our top priority. As the sponsor of a qualified retirement plan, you have several responsibilities that you must perform. We are here to help you understand and fulfill those responsibilities so that compliance with federal standards is easy and automatic for you. To get started, here is a short-hand list of key plan sponsor responsibilities.

Administer the Plan according to the terms of the Plan document and all applicable state and federal rules and regulations.
Maintain a fidelity bond within Department of Labor regulatory guidelines.
Designate a Plan Trustee and Administrator.
Establish an Investment Policy Committee to review your Plan’s fund offerings.
Make your Plan available to all eligible employees.
Communicate required Plan information to all Plan Participants including, but not limited to, the Summary Annual Report and any applicable Safe Harbor Notices.
Deposit employee and employer contributions in a timely fashion in accordance with Department of Labor standards, i.e., on the “earliest date that they can reasonably be segregated from the employer's general assets.”
File all government forms within specified deadlines.
Maintain all Plan records including (but not limited to) Plan Document, Participant Investment Election Forms, Distribution and Loan Forms, and Beneficiary Designation Forms.
Approve only those distributions and loans from your plan that are allowed by federal law and by your plan document.
Provide year-end information in a timely fashion so that your compliance testing and government filing can be completed within federal deadlines.
Report immediately any ownership changes or corporate structural changes as such changes can significantly impact your retirement plan. Seemingly insignificant corporate changes or acquisitions by a company owner (or sometimes a relative of an owner!) can significantly impact the status of your plan and may require plan modifications or corrective measures. Be sure to keep your relationship manager in the loop prior to any reorganization so that we can alert you if any modifications to your Plan are necessary.
Provide accurate and complete census and contribution data with each payroll.
- Include birth dates, hire dates, termination dates, and re-hire dates on all of your employees (not just for those that are deferring)
- Report all compensation including bonuses and commissions for each employee
- Report hours for all employees even if their pay is not based on hours (eligibility and vesting often depend on meeting a minimum number of hours per year)
- Take deferrals on all compensation including bonuses and commissions unless your plan document specifically excludes a type of compensation

» Plan Sponsor Administrative Guide