BDO Talks ERISA

Episode 14 Key Takeaways

[2:00] What is the Great Resignation, exactly?

[4:00] What is the difference between working from home vs. working remotely?

[6:20] What do companies need to be aware of when having a mobile workforce?

[11:15] Companies don’t know what to do right now when it comes to fair compensation.

[16:15] Ask your employees what they want. It really does go a long way.

[18:05] Jason offers suggestions on how you can think about benefits beyond the “traditional” services already provided like dental and healthcare.

[21:40] Employees are really trying to find ways to minimize uncertainty. The more an employer can minimize that uncertainty through communication, reworking plans, and more, can help smooth the process.

Resources

BDO.com

Jason on LinkedIn

Related Insights

Retaining Talent During the Great Resignation;

Developing a Geographic Pay Philosophy;

What’s Next for Employee Mobility?

Quotes

“Of all the decisions employers can make, compensation is the one that employees generally feel the strongest about. Emotionally, physically, and it impacts how they think about things.”

“Sometimes people were afraid to ask, but you’re not going to know what the answer is unless you ask. Employees now are finding their voice.”

“Employers are realizing that the one-size-fits-all approach to their healthcare/benefits package may no longer be appropriate. Employee populations are diverse.”

Episode 13 Key Takeaways

[2:00] A little bit about Blake.

[3:00] What is an ESOP?

[4:10] When does it make sense to offer an ESOP to employees?

[6:20] It’s important to conduct a feasibility study before offering an ESOP.

[9:45] Are certain industries better suited to incorporate an ESOP?

[12:00] Blake explains why ESOPs are great from an employee retention perspective.

[14:00] What are some of the upcoming challenges with ESOPs?

[17:00] What do companies need to be aware of when they set up an ESOP?

Resources

BDO.com

Blake on LinkedIn

NCEO.org

Esopassociation.org

Eoxnetwork.org

Is an Employee Stock Ownership Plan Right for Your Business?

Quotes

“Construction is a great one for an ESOP. The reason for that is earnings are cyclical in some cases so they’re not super predictable.”

“As Baby Boomers are getting ready for retirement, ESOPs are an excellent way to continue with the company.”

“The reality is there’s just a lot of capital right now and people are excited to invest in ESOP transactions.”

Episode 12 Key Takeaways

[5:10] Your hosts dive into the top 10 ERISA violations, which account for a total of 97% of all violations.

[5:45] Top 10: Failure to establish trust.

[6:20] Top 9: Reporting violation.

[8:00] Top 8: Bonding.

[10:00] Top 7: Duty of disclosure.

[11:30] Top 6: Improper benefit to employer.

[13:15] Top 5: Failure to follow plan documents.

[16:10] Top 4: Prohibited transactions with a party in interest.

[18:55] Top 3: Fiduciary self-dealing.

[20:55] Top 2: Exclusive purpose.

[23:15] Top 1: Fiduciary imprudence.

Resources:

BDO.com

Email: [email protected]

Beth Garner on LinkedIn

GAO-21-376, Appendix III: Top 10 ERISA Violations Identified in Investigations

Related Insights:

• Podcast Episode: The Core of the Cookie Cutter: Understanding Litigation Under ERISA

Quotes:

“The topmost frequent violation categories account for almost 97% of all violations.”

“As we go up this list, the violating provisions are more broader terms. Many operational issues can fall within the parameters of these provisions.”

“What’s in the plan document? That’s the legal document. If it’s not in the plan document, it doesn’t exist.”

Episode 11 Key Takeaways

[4:20] A fun little fact about David.

[4:55] What do audits and cybersecurity have to do with each other?

[9:35] What should plan sponsors be thinking about when it comes to privacy concerns and how is that different from security concerns?

[12:25] The biggest thing a plan sponsor needs to understand is what security protocols are in place.

Resources:

BDO.com

Email: [email protected]

Beth Garner on LinkedIn

David Levine Bio

Related Insights:

• Podcast: Not a Matter of If, but When: Protecting Your Data and Your Responsibilities as a Plan Sponsor
• DOL Issues Cybersecurity Guidance for Retirement Plans
• Remote Working and Cybersecurity Considerations for Plan Sponsors

Episode 10 Key Takeaways

[4:20] A little bit about David and his work at Groom Law Group.

[5:50] Is there a way to simplify and explain what some of these plan lawsuits are all about?

[6:50] Most litigations fall under three categories: Loyalty, Prudence, and Prohibited Transactions.

[12:00] Later this year the Supreme Court will hear a case on ERISA, what are the potential impacts on future cases.

[16:10] We will continue to see these kinds of cases, but also innovation.

[14:00] David touches on the rise of lawsuits about data breaches and cybersecurity.

[18:15] There seems to be a lot of excessive fee lawsuits lately. David breaks down the categories of the fees.

Resources:

BDO.com

Email: [email protected]

Beth Garner on LinkedIn

David Levine Bio

Key Takeaways:

[2:15] Erin does a quick recap of what they talked about in previous episode, Don’t You ‘SAS’ Me! Gut Check on SAS 136.

[3:00] Joanne also does a recap on how SAS 136 was created and what problems it helps to solve.[4:20] What is the definition of a reportable finding?

[6:10] Joanne and Erin share some of their real-world experiences with reportable findings.

[9:30] Reportable findings need to be presented through a formal communication method. This means that a casual email informing the client is no longer sufficient.

[11:50] Under SAS 136, new significant plan provisions need to be identified and audited.

[14:10] How serious are reportable findings?

[15:00] When should you start having conversations about this with your auditor?

Resources:

BDO.com

Email: [email protected]

Beth Garner on LinkedIn

Erin Breit on LinkedIn

AICPA.org

Related Insights:

• Podcast Episode: Don’t You “SAS” Me! Gut Check on SAS 136
• SAS 136: What Plan Sponsors Need to Know About Upcoming Changes to ERISA Plan Audits
• Audit Communications to Plan Sponsors More Robust Under SAS 136

Quotes from the Episode:

“So a reportable finding under SAS 136 has a three-part definition. The first one being any non-compliance with laws and regulations would be considered a reportable finding.”

“There’s a lot of auditor judgment in things that would be considered significant and relevant to those charged with governance.”

“A reportable finding has to be communicated in writing, which is consistent with the requirements for material weaknesses and significant deficiencies.”

Key Takeaways

[2:50] A little bit about Venson and why he is so passionate about this field.

[5:55] What’s going on with disclosures when it comes to healthcare plan services?

[10:35] When can you use the self-service tool to provide disclosures?

[11:25] What do we need to know about the No Surprises act?

[15:05] What do health plans need to do to accommodate for this act?

[17:00] Investing in preventive care upfront will be a lot less expensive down the line for more chronic conditions. Venson encourages plan participants to really take advantage of this in your healthcare plan.

[18:25] What Is the healthcare plan’s role in preventive care?

[21:20] Remember, one size does not fit all. Every organization has different needs based on their size.

[24:10] Access to preventive care means better access to your doctor.

[26:55] What benefit coverages will be changed in light of COVID?

[32:15] Interested to know more? Send your questions to [email protected].

Resources:

BDO’s ERISA Center of Excellence

Beth on LinkedIn

Venson on LinkedIn

Related Insight:“No Surprises Act” Protects Patients from Unexpected Medical Costs

Email Questions and Comments to [email protected]

Quotes from the Episode:

“The No Surprises act is to make sure that, for the consumer, that they’re not surprised with any billings or higher billings for services that they received.”

“Why are we going through all of these changes? It’s really driven by the government and the industry and the consumers who are interested in enhancing the quality and lower costs.”

“We are encouraging more preventive care upfront to minimize the severity of some of the chronic conditions. The more we can invest in that, it’s a whole lot less expensive.”

Key Takeaways

[3:10] Beth has a fun fact for Joanne, her work best friend!

[5:15] There are two parts to an EBP audit.

[7:00] What is a “process narrative” and what does it entail?

[8:45] Joanne shares a couple of examples of what an audit looks like.

[13:40] Let’s talk about SOC 1 reports Type I and Type II and how they’re defined.

[19:25] What do you do when you get the qualified SOC report in your hand?

[21:20] How do you have a smooth audit?

[23:25] Open and honest communication is key to keeping both parties on track.

[25:10] Be prepared when it comes to the reconciliation.

Resources:

BDO’s ERISA Center of Excellence

Beth on LinkedIn

Email Questions and Comments to [email protected]

Quotes from the Episode:

“A SOC report includes an opinion on the operating effectiveness of the controls and a detailed description of the auditor's test of those controls and the results of those tests are out at a specified period.”

“Auditors having a weekly check-in really keeps both parties on track and open communication is key.”

“Auditors love early on when there’s a qualified SOC 1 report because we’re going to have to assign more time for the audit.”

Key Takeaways

[3:10] A little bit about Mike and his background in IT.

[5:05] Employees can be an organization’s biggest risk when it comes to cybersecurity.

[5:25] How has cybersecurity evolved over the years?

[11:00] An organization needs to understand the types of assets that they have that criminals would be interested in getting their hands on.

[12:25] What level of cyber risk are you willing to accept?

[15:30] What kind of security measures can an organization or small business put in place today to help have a safer company as everyone works remotely?

[20:45] Who is responsible for cybersecurity protocols and risk when it comes to sponsor plans?

[26:35] Curious to know about cybersecurity and how it relates to your benefit plans? Reach out and ask a question.

Resources:

BDO’s ERISA Center of Excellence

Beth on LinkedIn

Mike Stiglianese on LinkedIn

Cybersecurity Framework | NIST

Email Questions and Comments to [email protected]

Quotes from the Episode:

“If it has value to you, it has value to somebody else. That’s an asset they want.”

“The important thing is understanding what your risk profile is, understanding what your risk appetite is, and managing it so those two things coordinate with each other.”

“Have multi-factor authentication. If someone did hack you, and they did steal your password, there is a secondary mechanism to protect you.”

Key Takeaways

[2:00] A little bit about Margaret and what she does as a social worker.

[4:00] Why are we talking about mental health on today’s episode?

[6:55] How concerned should employers be about employee burnout and what can they do to better support their staff?

[9:20] There has to be a culture of acceptance.

[12:55] Employees are not comfortable asking for help.

[15:35] Women are leaving the workforce. Why?

[20:00] HR is changing rapidly and hopefully they’ll be taking a look at the mental, physical, and financial wellness of their staff.

Resources:

BDO’s ERISA Center of Excellence

Beth on LinkedIn

Email Questions and Comments to [email protected]

Quotes from the Episode:

“If you need the help, ask for it. There’s nothing wrong with it. You’re not in a silo, everyone is going through this.”

“Happy employees, happy employer. There isn’t an overnight cure for everything, but it’s about being aware and knowing your employees and developing that good culture.”

“The perfect storm breeds an opportunity for the perfect change and to make things even stronger.”