SSRRS Posted March 31, 2022 Posted March 31, 2022 Hi We received the following request from an attorney representing our client (10/31 year end) that based on the request it seems the client is leaving us. The Request was made Wednesday afternoon (yesterday). Are we obligated to stop all that we are involved with and interrupt our scheduled meetings etc to provide them with this information on this last minute request? This is the first time we heard anything about this. And can they truly hold us responsible for penalties mentioned below? Thank you very much for any insights on this. "We need the following documents today, because we have to make a filing by Friday. Please send today. If we do not receive the documents, "client" will hold you accountable for any penalties, interest charges and damages, so please deal with this NOW. Thank you DB Plan · Most current plan document and all amendments thereto (the document should have been updated by July 31, 2021. · Most current SPD · actuarial report for plan years ending 10/31/2018, 10/31/2019 & 10/31/2020 · census data for plan years ending 10/31/2019 & 10/31/2020 · 2021 AFTAP · latest PBGC filing · asset statements for 10/31/2020 through current date · List of contributions made to the plan between 11/1/2020 – current date (this should match what is shown on the plan account statements. · any sponsor election forms signed 10/31/2019 to date (e.g., election to utilize pre-funding) · \historical compensation data (the current actuary should be able to provide this for years prior to 10/31/20219 (this is needed to develop average compensation). · ARPA elections, if any · copy of the latest annual funding notice · copy of the last distribution form (e.g., the form for the last participant paid out). DC Plan · Most current plan document (the version we need would have been signed between May 1, 2014 and current date). · Most current SPD · calculation reports for plan years ending 10/31/2019 & 110/31/2020. The report should detail the contributions made for each person under the plan. · asset statements for 10/31/2020 through current date (if participants direct their own investment, we would need a copy of each participant’s account statements)
Lou S. Posted March 31, 2022 Posted March 31, 2022 Well presumably most of this is old data/reports/etc. that they should have in their files. As for anything current they are requesting what does your service agreement say? And making a request on Wednesday and expecting the request to be filled on Thursday I would not expect to be considered reasonable. I mean I guess you could call the client and say the cost for this rush billing project is $x and we require an immediate retainer of $y before starting the project. And no we will not be responsible for penalties for your failure to not maintain plan records. Luke Bailey, MoJo and SSRRS 3
SSRRS Posted March 31, 2022 Author Posted March 31, 2022 Thank you Lou. Much appreciated. Yes, it is quite unreasonable to request this in this manner. Can they claim they never got these documents originally? They did have an audit (thankfully closed with no change), and we provided copies of quite a few of theses items, so I guess they can't reasonably claim that they never received anything. However, can they have a claim that not all was received? Then again it is their word against ours?
Lou S. Posted March 31, 2022 Posted March 31, 2022 I have no idea what that can claim and I'm not an attorney but you might remind them who is listed as the ERISA Plan Administrator in the Plan Document that they signed as ultimately that looks like the responsible fiduciary for much of what they are requesting, some of which looks like source data that they would have originally provided to you. You're responsible for returning any source data the client provided and copies of prior reports they paid for and you sent but you able to charge a reasonable copying charge for your time. You're not responsible for send them work product that hasn't yet been paid. As to time frame, I would again say that turn around is unreasonable. I mean did they just learn Wednesday morning they had a Friday filing deadline for something? And was it something they engaged you to do? I don't see how it's your problem or why you should make it such. SSRRS 1
SSRRS Posted March 31, 2022 Author Posted March 31, 2022 1 hour ago, Lou S. said: I have no idea what that can claim and I'm not an attorney but you might remind them who is listed as the ERISA Plan Administrator in the Plan Document that they signed as ultimately that looks like the responsible fiduciary for much of what they are requesting, some of which looks like source data that they would have originally provided to you. You're responsible for returning any source data the client provided and copies of prior reports they paid for and you sent but you able to charge a reasonable copying charge for your time. You're not responsible for send them work product that hasn't yet been paid. As to time frame, I would again say that turn around is unreasonable. I mean did they just learn Wednesday morning they had a Friday filing deadline for something? And was it something they engaged you to do? I don't see how it's your problem or why you should make it such. Lou your brilliance and analytical mind is much appreciated! Thank you for the heads up re the unpaid work. And your question re why they just woke up now, really paints the picture perfectly.
Nate S Posted March 31, 2022 Posted March 31, 2022 "...it seems the client is leaving us." Did the client say as much and direct you to share this data? Maybe chalk it up to a "phishing" scam and tell the client you're ignoring it for their protection! 😇 FormsRstillmylife, Riley Britton, Bird and 1 other 4
SSRRS Posted April 5, 2022 Author Posted April 5, 2022 On 3/31/2022 at 7:46 PM, Nate S said: "...it seems the client is leaving us." Did the client say as much and direct you to share this data? Maybe chalk it up to a "phishing" scam and tell the client you're ignoring it for their protection! 😇 Thank you Nate. Instead of hitting reply to the email (as possible spam) I wrote a new email to the client and attorney that was requesting the information, stating that I was quite surprised to get a request a day before a due date, as usually you have been fair and reasonable and then in parentheses I wrote (unless someone hacked into your email). ...The client, other then this email, never informed us of this firm change. Seems they have their own way of doing things.
Nate S Posted April 6, 2022 Posted April 6, 2022 And what filing is due 5 months after plan year end??? SSRRS and Bill Presson 2
SSRRS Posted April 6, 2022 Author Posted April 6, 2022 13 hours ago, Nate S said: And what filing is due 5 months after plan year end??? Thank you Nate. I wasn't sure what the attorney was referring to, but with a bully personality as this client/attorney is anything scares.
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