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Per plan filing this plan had a combination of 2 factors that expose the plan’s sponsor and fiduciaries to personal liability. Per the plan filing the plan (1) did not indicate it had a 404(c) election in place and (2) plan members had participant-directed accounts. Under these circumstances ERISA regulations state that plan fiduciaries are responsible for losses incurred by plan participants in their investment accounts. The combination of these two factors is extremely dangerous and should be corrected as soon as possible. |
 Per plan filing the plan's trustee failed to file Schedule P. The 6-year statute of limitations for exempt trusts such as this one does not begin to run until this Schedule is completed and filed. Failure to file Schedule P exposes a trustee to continuous liability for trust transactions. Schedule P also includes a key disclosure statement that trust financial information was provided to the plan as required by ERISA regulations. It is in the best interests of a plan trustee to ensure that this document is filed. |
 Per plan filing the plan's CPA issued an "Adverse" opinion. This may indicate a significant problem with the plan. CPA’s issue adverse opinions when the financial statements do not fairly present in all material respects, the financial status of the plan. The reason could be anything from poor plan management to missing plan assets. Plan participants should request a copy of the CPA's report from the plan administrator and make an immediate inquiry as to why the CPA issued an Adverse Opinion. |
 Per plan filing this plan
may have an insufficient fidelity bond. If true, the plan may not be in compliance with ERISA rules and regulations. Lack of sufficient bond exposes fiduciaries to additional risk. Participants should make an inquiry of the plan administrator. |
| Per plan filing the plan has participants who are separated from service or receiving benefits. Plan sponsors in this situation should consider the cost and liability associated with retaining former employee accounts. |
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 Per plan filing Schedule SSA was required but not filed. This is an indication that the plan document may be improperly prepared. Schedule SSA is important to former plan members no longer employed or separated from service with the sponsor. The information reported on Schedule SSA is forwarded to the Social Security Administration, which in turn provides it to plan participants when they file for Social Security benefits. If the form is not filed former plan members could lose their benefits. Any separated employee should make sure this form is filed annually. It's also in the best interest of plan sponsors to see that this form is prepared and attached to annual filings. |
