facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause

Insights

Check out our blog posts below. If you have questions or comments, please email us at AskAPS@apspension.com or sign up to receive an email with our latest posts.

%POST_TITLE% Thumbnail

If an Eligible Employee is Overlooked How is That Fiduciary Breach Corrected?

Generally, correcting this type of oversight concentrates on making the employee whole, i.e. make up for the missed deferral opportunity in a 401(k) plan and/or the missed employer contribution in a profit sharing plan in addition to earnings on the missed deferral or contribution. In a 401(k) plan the correction is accomplished by an employer “Qualified Nonelective Contribution” (QNEC) equal to 50% of the employee’s group Actual Deferral Percentage (ADP). The group refers to either a Highly Compensated Employee (HCE) or a Non-Highly Compensated Employee (NHCE).

Read More
%POST_TITLE% Thumbnail

What is an ERISA Fiduciary?

A fiduciary is someone who is authorized by an agreement like a trust or service agreement to act on behalf of someone, whether an individual or an entity like a retirement plan. ERISA defines three types of fiduciaries in Section 3: a Section 3(21), 3(38) and 3(16). Let’s begin with the most basic of the three, the 3(16) fiduciary.

Read More
%POST_TITLE% Thumbnail

What are the Advantages, Disadvantages & Guidelines for an Auto-Enroll 401(k) Plan?

The primary benefit of an auto-enroll 401(k) plan is the potentially improved results of the ADP and ACP testing in a plan that does not include Safe Harbor provisions. Typically, the plan will automatically enroll employees once they are eligible based on the plan document provisions. An “Eligible Automatic Enrollment Arrangement (EACA)” does not require employer contributions.

Read More
%POST_TITLE% Thumbnail

Who is a Fiduciary?

For purposes of ERISA you are most likely a fiduciary if you sign the Form 5500 or other plan filings, sign the Plan Document as trustee or plan sponsor, choose the plan’s providers or sit on a committee that hires those providers, e.g. record keepers...

Read More