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Posted

My accounting client has a Prevailing Wage plan with another TPA firm. They are a calendar year plan and on 1/1/06 they had 106 participants and at 1/1/07 they had 124 participants...do prevailing wage plans need to be audited? Can someone give me some information on the rules governing the prevailing wage plans, and if they need to be audited over a certain participant count? Aren't they non-qualified plans? If so, do those not get audited? Is there anything that needs to be done in this case?

Thanks for your help!

Guest Pensions in Paradise
Posted

Prevailing wage plans (aka Davis-Bacon plans) are subject to the same rules as "regular" plans. There is a Davis-Bacon Q&A column on BenefitsLink. In addition, the May-June 2003 ASPA Journal had a detailed article.

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