Auditing a DB plan

[lexi]

I have an ER who is party to a CBA. I have learned that the Fund Administrator is going to audit the plan for years 1999 to 2005.

1) can an audit span this far back? i know a plan must be allowed to make annual audits but is there a "statute of limitations" for past years; and

2) in 2002, the ER was audited from 2000 through 2002, at which point we were informed that there was a deficit for 2002. we offered to settle and they declined to pursue it. is there a laches argument to be made or must we pay?

can anyone get me pointed in the general direction of the appropriate Code and/or Act sections?

thanks in advance.

[david rigby]

Is there any reason that you believe a statute of limitations or statutory cites would limit the Fund Administrator from auditing its own plan? Could the language of the plan and/or the CBA also be the guide?

[JanetM]

Are you saying the ER is part of multiemployer plan? Look at plan document and see what it says. Plan can always go back are audit its own records. Don't think you have arguement for laches if this is multiemployer plan. Most of them are disorganized and poorly run and if they become underfunded enough then the regs state that ERs have to pay up regardless of amount set by CBA.