Ohhhh gosh, not another unreported retirement plan…
Does anyone even know if we are in compliance with the terms of the code? Just a quick look at the plan requirements suggests that the level of administration for our size appears to be quite onerous. Just look at this one clause I pasted below – do we really have a “fund committee” with representatives of the employees? And, who is the Company/employer representative?
Section 11. The fund shall have a fund committee which consists of
representatives elected by the employees and those appointed by the employer. The fund
committee shall have the duty to supervise the overall operation of the fund and shall have
the power to appoint a fund manager and shall be the representative of the fund in the
businesses involving third parties.
How is this fund being accounted for – as a defined contribution plan?
Are the assets/liabilities on our balance sheet?
What is the asset value in USD?
Are we in a single fund or a pooled fund?
When was the Company’s contribution rate set and has it ever changed?
How many employees are in the plan?
Are all employees automatically enrolled or is participation voluntary?
How are the funds invested – in mutual funds, for example?
What is the benefit at termination – is it the balance in the participant’s account or is it an amount based on years of service/final pay/age??
What was our expense in 2013 for the Company contribution?
This is just the first round of questions – more to follow after these are answered.