Compliance & Regulations

​

ESOP Compliance with Peninsula

Comprehensive compliance monitoring and support.

​

Regulatory Framework

​

Key Regulations

DOL (Department of Labor):

• ERISA compliance
• Fiduciary duties
• Prohibited transactions
• Reporting requirements

IRS (Internal Revenue Service):

• Qualification requirements
• Coverage and nondiscrimination
• Distribution rules
• Tax compliance

Other Requirements:

• Securities regulations
• State requirements
• Plan document compliance

​

Automated Compliance Testing

​

Coverage Testing

Ensuring adequate participation:

• Ratio percentage test
• Average benefit test
• Minimum participation standards

Frequency: Annual (automatically) Alerts: If test results indicate issues

​

Nondiscrimination Testing

Fair allocation verification:

• General test (401(a)(4))
• Safe harbor compliance
• Cross-testing if applicable

Frequency: Annual Support: Corrective action guidance if needed

​

Top-Heavy Testing

Monitoring key employee benefits:

• Automatic calculation
• Minimum contribution requirements
• Reporting to participants

Frequency: Annual Action: Implement minimums if top-heavy

​

415 Limits

Annual additions limits:

• Monitor contributions and forfeitures
• Track annual additions
• Prevent excess contributions

Frequency: Real-time monitoring Protection: Automatic alerts before limits exceeded

​

Plan Document Compliance

​

Document Updates

Keep plan current:

• Regulatory changes
• Discretionary amendments
• Restatements
• Required updates

Process:

• Monitor regulatory changes
• Draft amendments
• Client review and approval
• Implement and file

​

Required Notices

Timely participant communications:

• Summary Annual Report (SAR)
• Summary of Material Modifications (SMM)
• Safe harbor notices
• Other required notices

Delivery:

• Automatic scheduling
• Multiple delivery methods
• Proof of delivery
• Archive for records

​

Regulatory Filing

​

Form 5500

Annual filing:

• Complete preparation
• Accuracy review
• Timely filing
• Electronic submission

Included schedules:

• Schedule R (distributions)
• Schedule H or I (financial)
• Other required schedules

Timeline:

• Draft: June
• Review: June-July
• Filing: Before deadline (extension if needed)

​

Other Filings

As required:

• Form 8955-SSA (participant statements)
• Determination letter applications
• VCP filings if needed
• State filings

​

Fiduciary Support

​

Plan Administration

Prudent procedures:

• Documented processes
• Regular monitoring
• Timely actions
• Proper records

​

Trustee Support

Fiduciary assistance:

• Annual trustee reports
• Compliance certifications
• Transaction documentation
• Ongoing consultation

​

Audit Support

If plan requires audit:

• Coordinate with auditors
• Provide documentation
• Respond to requests
• Review audit results

​

Correction Programs

​

Identifying Issues

Proactive monitoring:

• Automated alerts
• Regular reviews
• Compliance checks
• Error detection

​

Correction Methods

Address issues promptly:

• Self-correction (EPCRS)
• Voluntary Correction Program (VCP)
• Proper documentation
• Preventive measures

Our role:

• Identify issues early
• Recommend correction method
• Assist with filings
• Prevent recurrence

​

Regulatory Updates

​

Monitoring Changes

Stay current:

• DOL guidance
• IRS notices
• Legislative changes
• Court decisions

Communication:

• Alert clients to changes
• Explain impacts
• Recommend actions
• Implement updates

​

Plan Updates

Keep plan compliant:

• Required amendments
• Document updates
• Process changes
• Participant communications

​

Best Practices

​

Documentation

Maintain proper records:

• Plan documents
• Amendments
• Board resolutions
• Participant communications
• Compliance test results

Retention:

• Permanent: Plan documents
• 6+ years: Compliance tests, distributions
• Per policy: Other records

​

Regular Reviews

Scheduled compliance checks:

• Quarterly operations review
• Annual compliance assessment
• Periodic plan audit
• Strategic planning

​

Education

Keep stakeholders informed:

• Trustee education
• Board presentations
• Committee training
• Staff awareness

​

Compliance Resources

Available support:

• Compliance manual
• Regulatory updates
• Best practice guides
• Training materials
• Expert consultation

​

Questions?

Compliance Questions

Contact our compliance team