Department of Labor Expands Audit and Enforcement Focus, Imposing $1.27 Billion in Fines Increased Scrutiny Heightens Fiduciary Liability of 401(k) Plan Sponsors
ROSELAND, N.J., Nov. 4, 2013 /PRNewswire/ -- ADP®, a leading global provider of Human Capital Management (HCM) solutions, advises retirement plan sponsors to evaluate and continuously monitor their 401(k) plans to ensure they comply with United States Department of Labor regulations in light of expanded auditing and enforcement activities.
According to the National Association of Plan Advisors, in the 12 months ending Oct. 1, 2012, more than 300 investigations resulting in $1.27 billion in fines were levied by the United States Department of Labor's Employee Benefits Security Administration (EBSA). EBSA reports as many as 75 percent of 401(k) plans that it audits are out of compliance. Last year, EBSA's enforcement efforts resulted in more than 3,500 civil investigations.
"Every qualified retirement plan sponsor needs to focus on risk mitigation," said Chris Augelli, vice president of product marketing and business development for ADP Retirement Services. "ADP can help plan sponsors reduce the inherent risks associated with plan administration by providing continuous synchronization of data between ADP's payroll and retirement plan recordkeeping systems. SMARTSyncSM, ADP's intelligent integration and analytics feature, helps to improve compliance by automatically reconciling plan data between systems, eliminating manual entry and oversight, as well as automating plan money movement and investment of participant contributions," Augelli added.
ADP Retirement Services' SMARTSync 401(k) integration solution helps clients streamline plan administrative tasks and reduce their exposure to compliance-related fines. Given the complex nature of maintaining retirement plans, including processing contributions on a timely basis, updating salary deferral rates, and overseeing employee loans, administrators can inadvertently overlook details that can easily lead to noncompliance and penalties for their 401(k) plan when systems are not fully aligned with company data.
Diane Schroer, controller at Flotech, notes how SMARTSync's integration relieved the administrative burdens associated with retirement planning at her worksite. "ADP helps us with our contribution rates," she said. "Before, we had to manually calculate the rates in an Excel spreadsheet. With ADP, it's all automated, and I don't have to worry about any errors."
"The integration with our payroll and 401(k) retirement services is a seamless transaction," said Michelle Moran, director of human resources of Ibis Golf and Country Club. "One of the time-saving features of this integration is that we do not have to transmit plan participant contributions. It's all done behind the scenes."
With ADP's SMARTSync, compliance risks can be minimized for businesses of all sizes. With analytics capabilities to help improve recordkeeping accuracy and compliance, SMARTSync conducts continuous checks to identify potential administrative and compliance issues through real-time monitoring of critical plan data across ADP's integrated payroll and retirement systems. SMARTSync then leverages the cleansed plan data to automatically debit accounts and forward plan monies to the plan's trust for timely and accurate investment of plan contributions with each payroll cycle.
Hear more of what other ADP Retirement Services clients are saying about how SMARTSync is helping to streamline retirement plan administration by integrating ADP's payroll and retirement plan recordkeeping system.
For more information about ADP Retirement Services and SMARTSync, please visit www.adp.com/401k or call 800-432-401k.
Not all clients will experience the same results. ADP has not compensated any clients for the included testimonials.
With more than $11 billion in revenues and more than 60 years of experience, ADP® (NASDAQ: ADP) serves approximately 620,000 clients in more than 125 countries. As one of the world's largest providers of business outsourcing and human capital management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world. For more information about ADP or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.adp.com.
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SOURCE Automatic Data Processing, Inc.