Establishing Safeguards for your Employee Benefit Plan

“Nine Charged in Theft from Employee Benefit Plan” reads yet another headline about an employee benefit plan fraud case.  Fraudulent activities have continued to increase through the years, and employers need to ensure that their plan is protected.  Fraud within employee benefits plans can involve owners, officers, accounting staff, plan administrators and service providers. Fraudulent activities can range from theft and embezzlement of plan assets using forged checks to failure to pay pension benefits due to employees.

All of these headlines remind plan sponsors about the importance of safeguarding their employee benefit plans.  This can be accomplished by implementing effective internal controls.  Effective internal control protects a plan in two ways:

  • By minimizing opportunities for unintentional errors or intentional fraud that may harm the plan, and
  • By discovering small errors before they become big problems.

The Employee Benefit Plan Audit Quality Center has updated its plan advisory “The Importance of Internal Controls in Financial Reporting and Safeguarding Plan Assets”.  The plan advisory contains information on how to establish cost-effective controls and monitor controls and provides examples of selected controls for plans.  For a copy of the publication, simply send your request to info@schneiderdowns.com.

More information regarding fraudulent cases involving employee benefit plans can be found at the U.S. Department of Labor (DOL) Employee Benefit Security Administration’s Criminal Enforcement publishes news releases related to criminal activity.

2014 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

ERISA BY Brian Reitz
Bad Fiduciary. What’s it Going to Cost You?
Audit, ERISA BY Joshua Zimmerly
Benefit Plan Audit by Infomercial
Audit, ERISA BY Todd Lucas
Long-Awaited Employee Benefit Plan Audit Standard Final Balloted
Making Your Benefit Plan Audit Easier
ERISA BY Lindzee Nicholson
Mortality Scale 2018 Update
Revenue Procedure 2018-52 Released by IRS: VCP Modifications

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

contactsd@schneiderdowns.com
p:412.261.3644     f:412.261.4876

Map of Columbus Office
Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

contactsd@schneiderdowns.com
p:614.621.4060     f:614.621.4062