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What to Expect from Your ESOP Audit

"An ESOP audit provides assurance that the right employees are receiving the right benefits at the right time. It also verifies that plan activity aligns with the governing plan document and accounting rules.... Auditor guidance and standards ... Phases of an ESOP audit ... Tips for a smoother audit ... Common pitfalls ... Valuation reviews: more than a compliance step ... Red flags in valuation reviews."

California Appellate Court Affirms Broad Scope of ERISA Preemption in State Law Privacy Case

"[T]he California Court of Appeal held that ERISA Section 514 preempts state law causes of action premised on wrongful disclosure of protected private health information. Although not-binding as precedent, the decision is noteworthy to Plan sponsors and administrators because it demonstrates the expansive preclusive effect of federal law over state privacy and consumer protection statutes that impact ERISA benefit claims." [Weaver v. Healthcomp, Inc., No. F075072 (Cal 5th Ct. App. Jan. 10, 2019; unpub.)]

TSP Weighs Its Supermodel Retirement Status

"The board that runs the Thrift Savings Plan, the federal government's 401(k)-style retirement program, is anxiously eyeing a new bill that uses the TSP as a model for a national retirement savings plan for millions of American workers.... 'What people miss is, we are an employer benefit. We're not in existence for any other reason than to provide federal employees with a retirement benefit that they get because they are federal employees.... ' That mission becomes more complicated when the TSP becomes available to everyone, [Kim Weaver, FRTIB director of external affairs] said. 'Once you open it up to all Americans, that focus gets lost, and the ability to keep our costs low completely goes out the window.' "

Loss of Pay Through Furloughs Could Mean Less in Savings Accounts for Federal Employees

"Employees invest in the [federal government's Thrift Savings Plan] based on a dollar amount per pay period or based on a percentage of salary. For those using the latter method and who are furloughed, the percentage invested 'will be of the actual pay, not the original/regular salary, so the TSP contribution would be lower than the participant initially intended,' TSP spokeswoman Kim Weaver said ... Employees under the Federal Employees Retirement System also would face a reduction in employer contributions to their accounts."